Pensions important in divorce cases

Wealthy couples who divorce hold more of their money in pension savings than any other asset, prompting concern that many people have little idea how splitting up could affect their retirement saving.

Wealthy couples who divorce hold more of their money in pension savings than any other asset, prompting concern that many people have little idea how splitting up could affect their retirement saving. Financial adviser Succession Wealth looked at couples with total wealth of more than £1m between them. The typical couple held 43% of this money in pension savings, against 31% in property wealth and only 20% in other financial assets.

When working out how to split a couple's assets, divorce courts are required to take pension assets into account, including both benefits already in payment and savings for the future. Funds can be split, or their value can be offset against other assets in the divorce settlement. However, many couples don't fully understand their options. Insurer Scottish Widows warned earlier this year that pensions are "fully discussed" in just 30% of cases, with 16% of women losing access to any pension fund after a split.

Recommended

Should you buy an annuity as rates start to rise?
Pensions

Should you buy an annuity as rates start to rise?

Pensioners who want to use their retirement savings to buy an annuity for a guaranteed yearly income can now earn more as interest rates rise.
3 Aug 2022
How to protect your pension pot from market turmoil
Pensions

How to protect your pension pot from market turmoil

The traditional way to protect your pension fund from market risk is to begin shifting your savings out of equities well ahead of retirement. But th…
26 Jul 2022
Our pension system, little-changed since Roman times, needs updating
Pensions

Our pension system, little-changed since Roman times, needs updating

The Romans introduced pensions, and we still have a similar system now. But there is one vital difference between Roman times and now that means the s…
25 Jul 2022
The bear market in bonds isn’t all bad news
Government bonds

The bear market in bonds isn’t all bad news

The rise in bond yields and the fall in bond prices can be a good thing or bad thing. Bad for bondholders, but good for many risk-averse pensioners an…
21 Jul 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Zhao Weiguo: China’s No. 1 chip tycoon vanishes
People

Zhao Weiguo: China’s No. 1 chip tycoon vanishes

Zhao Weiguo rode a decades-long boom in China pursuing Beijing’s core industrial policy of semiconductor self-sufficiency. Then he fell foul of Xi Jin…
5 Aug 2022