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Thousands risk pension poverty after divorce: Aviva

New research from Aviva suggests that 15 per cent of divorced people did not realise their pension could be impacted by getting divorced. More than a third (34 per cent) made no claim on their former partner's pension so that it was not included as an asset in the settlement when they did divorce. Almost one in twelve (8 per cent) divorcees say they did not have their own pension savings as they were relying on their partner to finance their retirement.

As a result of divorce, as many as one in five (19 per cent) say they will be, or are, significantly worse off in retirement.

Aviva's research revealed that in order to supplement their income following a divorce, one-third of divorcees (32 per cent) said that they dipped into their savings; one in five (20 per cent) used credit cards for everyday living expenses; a similar number (18 per cent) borrowed from friends or family; and just over one in seven (15 per cent) regularly sold clothing, toys or other household items to make ends meet.

Aviva reported that one in eight (12 per cent) respondents admitted to having to go out to work, having not worked before their divorce, or get a second job (10 per cent). One in eight (12 per cent) also cut back, or cancelled, their pension contributions, putting their future retirement income further at risk.

For the full report, click here.

7/5/22