Divorce can reduce a pensioner’s income by more than £2,000 a year, according to new figures published this week.
Married people planning to retire this year can expect an average annual income of £17,800 but the figure falls to £15,700 among those who have been divorced. The statistics come from the latest ‘Class Of’ report by Prudential, which looks at the plans and expectations of the current generation of retirees.
More than one and three of those questioned by researchers had previously been divorced. The report found the financial effects of the separation continue to affect people even years after their marriage ends.
Around 20 per of people will retire with outstanding debts and divorcees were found to carry a slightly higher debt burden into retirement, averaging £22,100 compared to £21,700 for their married counterparts. Divorcees were also slightly more likely to delay the date of their retirement compared to those who are still married.
Prudential pensions specialist, Clare Moffat, said: “Although the emotional impact of divorce may have long passed, it could come as a shock for people to find that it continues to impact them financially into their retirement. A pension fund is likely to be one of the largest and most complicated assets a couple will have to split in the event of a divorce.”