Separation and pension assets. Do you know how this might affect you?

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Retirement brings up images of relaxation, travel, embracing hobbies and activities, and stepping away from the daily grind. We often shy away however from thinking about how this will be funded.

Pressures of daily life means that our hard earned cash is used to pay the mortgage, household expenditure, and the odd treat. Little thought is given to funding of pensions and any contribution if possible, is small.

Pensions however need to be considered at an early age and even more so further to marriage breakdown.

From a gender basis, there is significant disparity between men and women due to juggling the demands of work and home and caring for children. Women often work on a part-time basis and have less security from an employment perspective. Accordingly, women end up with less pension income than men on average when they retire and this is currently 40%.

A recent study shows that married men have the most pension wealth. The report also concluded that pension sharing on divorce could have a substantial impact on women’s finances in later life and that any trade-offs between house and pension in divorce may not always be balanced, as pension wealth can exceed property wealth.

If you are going through a marriage breakdown and there are pension assets, please ensure that you take professional advice before agreeing how pensions should be addressed.

Pension assets are a key factor in ensuring that you are financially provided for in later life. Accordingly, you need to look at the bigger picture and ensure that you have a clearer understanding as to what financial agreement is fair.

If after reading this article you have any questions or if we can help with any aspect of Family Law please click here to contact a member of our Family Law team today.

Cindy Ervine

Partner and Head of Family Law

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