Divorce costs £3,800 a year in retirement income
23 February 2018
Expected annual income for divorcees retiring in 2018 is £17,600 compared to £21,400 for those who have never been divorced
Divorce also means people are more likely to retire in debt and without private pension savings, Prudential research shows
Divorcees who plan to retire in 2018 can expect their yearly income to drop by £3,800 compared to those who’ve never divorced, new research from Prudential1 shows highlighting the impact of marriage breakdown on pension saving.
Our annual study has run for the last 11 years and it’s tracked the finances, future plans and aspirations of people planning to retire in the year ahead. For the Class of 2018, expected annual retirement income is £17,600 for those who have previously been divorced compared with £21,400 for those who have never experienced a marriage break up.
Prudential analysed the latest available divorce statistics from the Office of National Statistics3. The figures, covering up to 2016 showed that, the number of people getting divorced has started to rise again and that those over the age of 55 saw the greatest increase in 2016 compared to 2015.
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