Till debt do us part: divorce knocks more than £3,000 a year off expected retirement incomes
11 May 2017
- Expected annual income for divorcees is £16,300 compared to £19,400 for those who have never been divorced
- Nearly one in three retirees who have been divorced expect to retire with debts, compared with only one in five of those who have never been divorced
Divorcees planning to retire this year expect annual retirement incomes of up to 16 per cent , or £3,000, lower than those who have never divorced, and they are also more likely to be in debt, according to new research from Prudential1.
The insurer’s unique annual study – which for the past ten years has tracked the finances, future plans and aspirations of people planning to retire in the year ahead – shows that for the Class of 2017, expected annual retirement income is £16,300 for those who have previously divorced compared with £19,400 for those who have never suffered a marriage break-up.
In addition, around one in three people who have been divorced expect to retire with debts (32 per cent), compared with just one in five (21 per cent) of those who have not been divorced.
Those who have been divorced are also more likely to have retirement incomes below the annual minimum income standard for single pensioners set by the Joseph Rowntree Foundation (JRF). Around one in five who have been divorced (21 per cent) expect to have incomes lower than the JRF’s benchmark of £186.76 a week2, or £9,712 a year, compared with 13 per cent of those who have never been divorced.
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