_{^{Thursday 20th May 2010}}

Female divorcees are increasingly becoming disadvantaged on retirement, according to research conducted by wealth manager, WHI.

The research highlights an increase in women not paying into pensions with 1 in 5 relying on their spouse’s pension. This, coupled with the fact that over 60s are now seeing a 50% rise in divorce rates, puts women under pressure at retirement.

Lindsey Hamilton, Head of Wealth Management at WHI said, “The UK now leads Europe’s divorce charts, with four in ten marriages currently ending in divorce. The fact that there has been a significant rise in divorces in the over 60s age bracket has some serious implications on financial planning and wealth management.  While offsetting assets can provide women with a one off lump sum - possibly including property - when the divorce is settled, these women must remember that the safety net of a pension in their husband’s name will not be there anymore.”

In the current housing market and economic climate, where property prices and the value of other assets tend to fluctuate more frequently, it’s important that women realise that asset settlements cannot normally be renegotiated after a divorce is finalised.

WHI warn women that it is imperative that when discussing divorce settlements after or nearing retirement that female divorcees discuss their financial planning with an expert, so that they do not end up in poverty on retirement.

If you would like more information about effective retirement planning or planning for your pension, please contact us.