Prudential insurers undertake a study which tracks future plans and aspirations of people planning to retire in the next 12 months every year and the report is now in its eighth year. This year, the research found that amongst divorcees the average expected retirement income as £15,700 and amongst those who had not been through a marriage breakdown if was £17,800. Prudential’s results also showed that people approaching retirement who had been divorced (13%) are more likely to delay the date of their retirement compared with those who have never been divorced (11%).
Clare Moffat, pensions specialist at Prudential, has highlighted the importance of the support of a professional financial advisor to help ensure that any financial decisions taken during divorce proceedings have the least possible impact on incomes later in life.
A pension fund is often the largest and most complicated assets a couple have to consider when separating. Considering the research undertaken by Prudential and the recent changes to pensions legislation it is vital that those who are approaching retirement with a substantial pension consider seeking updated financial advice on any post-retirement plans they may have made under the previous rules.