If you have divorced or dissolved your civil partnership or are in the process of doing so, you may not realise this could affect how much you will have for your retirement income. If you divorce or dissolve your civil partnership before you retire, pensions you and your partner have will be taken into account when dividing assets, meaning you could retire with less money than expected.
The types of pension that can be shared as part of a divorce or dissolution settlement include:
- Personal pension schemes
- Workplace pension schemes
- Additional State Pension (but not the basic State Pension)
The total value of the pensions you and your ex-partner have each built up will be taken into account, this will include pension savings that were built before you were married or in a civil partnership, but will not affect your basic State Pension.
Going through a divorce or dissolution is already a difficult time, to help relieve some of the stress and uncertainty of how your retirement could be affected it is imperative to seek independent pension advice as soon as possible to be clear on your position and your options before any action is taken or court proceedings to divide assets begin.
If you have divorced or dissolved your civil partnership or are in process of doing so, it is advisable to seek independent pension advice to determine whether your workplace or personal pensions could be affected. If you are looking for independent pension advice, we can help you find a pension adviser in your local area to help you identify how your pension savings could be affected.
Our recommended financial advisers provide independent pension advice across the UK to work with you to review your current pension plan and determine whether a change in your personal circumstances, such as divorce could affect your retirement income. All of the financial advisers we recommend provide advice that is tailored to your unique circumstances.
Divorce or dissolution after you retire
If you get divorced or dissolve your civil partnership after you retire, your pensions may be treated slightly different than if you separate before you retire. To get a better understanding of how your pension could be affected by divorce or dissolution after retirement it is advisable to seek independent financial advice that is tailored to your unique personal circumstances.
How your State Pension is affected by divorce or dissolution
The new State Pension cannot be shared if your marriage or civil partnership ends, however if you are entitled to the Additional State Pension a court could order that this payment is eligible for sharing as part of your divorce or dissolution. Seeking financial advice will help you determine whether this is applicable to your circumstances and can advise on how your retirement income may be affected.
If you are looking for independent pension advice in your area we can help you find a specialist pension adviser that can provide advice on all aspects of pension planning, including pension planning advice when you divorce or dissolve your civil partnership.
Seeking independent pension advice will help you to gain a clearer understanding of the different options available to you and ensure that you have the most effective retirement planning strategies in place following a change in your personal circumstances.
At PensionAdvice.org we can help you find a FCA registered financial adviser for independent pension advice. The financial advisers we recommend offer bespoke independent pension advice across the UK on all aspects of pension and retirement planning.