Why women should insist on pension savings in divorce-By Nicole Blackmore

A shocking 85pc of women fail to consider pension savings in divorce settlements

Women risk financial hardship in retirement by ignoring pension savings in divorce proceedings. Photo: Alamy

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Almost 85pc of divorced women are failing to consider pensions as part of their settlement, leaving many at risk of financial hardship in retirement.

Research by pension provider Scottish Widows showed that among divorced women, 84pc said pensions weren’t discussed, or they don’t remember them being discussed, as part of any settlement.

Women typically save less toward their retirement than men, thanks to lower earnings and the tendency to take time out of the workforce to raise children. Many still rely on their partner or spouse to provide an income in retirement.

But estimates suggest 42pc of marriages will end in divorce and couples in their 60s who are nearing or in retirement are increasingly severing the knot.

Analysis by the International Longevity Centre UK found the number of people aged over 60 getting divorced will increase by more than 40pc in just over 30 years.

The estimate, based on current separation rates and demographic projections, means that by 2037 over–60s will account for almost one in every 10 splits.
Divorces after long marriages are often the most financially complex. Women of all ages are vulnerable in the divorce process, as they tend to have smaller pension entitlements or other directly owned assets. Pensions are also frequently undervalued in divorce settlements.
Scottish Widows’ Women and Retirement Report found men are still putting away more than women for retirement each month.
Women typically save £206 a month, approximately 30pc less than men who are saving an average of £298.
This adds up to a difference of £142,000 in terms of the total amount saved for retirement over a working lifetime from age 22 to age 68.
Almost 15pc of women still rely on their spouse or partner’s company pension to provide an income in retirement. This figure increases for older age groups and peaks at 21pc for women aged in their 50s.
The proportion who say they will need to rely on their spouse or partner’s company pension

Age	Men	Women
22-29	5pc	9pc
30-39	12pc	12pc
40-49	11pc	18pc
50-59	7pc	21pc
60-69	7pc	20pc

Worryingly, 11pc of women say they have never thought seriously about paying into a pension.

Biggest pension mistakes women make in divorce

Fighting to keep the family home in lieu of a pension
Women often have an emotional attachment to the family home, especially when there are children involved. However, taking on the whole mortgage can have disastrous financial consequences if it is not affordable. Women are often better off downsizing to a smaller property and taking a share of their partner's pension.
Splitting the total pension pot rather than the retirement income
Women often agree to split their partner's total pension pot in half; however, in many cases they will need more than half to receive the same level of income in retirement, especially if they do not have the earning capacity to continue growing their share.
Women should look to take an equal share of the income, which is determined by a number of factors, including a person's age, health and lifestyle, rather than half the capital.
Accepting asset valuations at face value
There is a legal requirement for both parties to fully disclose the value of their assets in divorce proceedings. However, valuing assets such as pensions and businesses can be complex, and there are ways to hide their true value.
Make sure all supporting documentation has been submitted when assets are declared. If in doubt, have a financial adviser or accountant check the figures.

Culled from Telegraph