Monday 4 January 2021 2:35 pm

Divorce Day: Women more likely to waive pension rights

Women are more likely to waive their rights to a partner’s pension as part of a divorce, according to new Divorce Day research. 

The first working Monday of the year has been dubbed ‘Divorce Day’, traditionally the day family lawyers see a spike in couples filing for divorce. 

The pressure of home working, home schooling and lockdown has also no doubt contributed to some marriage breakdowns. 

Research by Legal & General published today reveals 28 per cent of women would give up their pension rights compared to just 19 per cent of men.

One in four divorces occur after the age of 50 and the data shows women are significantly more likely to worry about the impact of their divorce on their retirement. 

“Our research indicates that, too frequently, people overlook the mutual value of their pensions; this could have a particularly harsh financial impact on women,” said Sara McLeish, chief executive of Legal & General Financial Advice. “This is even more  important when we consider that women, typically, live longer than men, so their savings need to stretch over a longer period of time.”

Additionally women are likely to see their household incomes fall by a third in the year following their divorce, almost twice as much as men – 18 per cent. 

Previous research by Legal & General showed that 53 per cent of divorcees are dissatisfied with the financial settlement they achieve.

“The new shorter divorce process is likely to leave more divorcees financially vulnerable but seeking financial advice at the same time as legal advice could help to avoid this,” said Kay Ingram, director of public policy at LEBC.