On average, divorced women retire with £77,400 savings less than men, according to research by Legal & General.
Today being International Women’s Day is the ideal time to highlight the financial inequality women still face in later life. After costly divorces where couples have multiple financial assets to consider as they approach retirement, it is often women that suffer the financial burden more than men.
Almost 49% of the UK population back in 1984’s research thought a women’s place was at home, this figure changed with women's attitude in the workforce.
The number of women in the UK employed in 2020 reached a record high of 72.7% compared to 80.1% of men, when records began in 1971 the figure was only 52.8%.
The gender pay gap still remains 15.5%. This gap is at its widest for women over 40.
Social inequality has effected women's finances, especially mothers that have taken time out to raise the children and upon returning to work face more barriers, due to preceived skill gaps, the changing work environment and prejudice.
Divorced women often face and have to absorb most of the financial risk later in life when they come to retire.
On average, women in their 60s will retire with approximately £51,000 in savings, compared to men of this age retiring with almost triple that amount of £156,000. These savings are halved for a divorced women retiring with just £26,100.
Despite this, almost a quarter of women still waiver the rights to their partner’s pension in the divorce settlement and women who divorce in their 60’s the figure increased to 31%.
Figures also show that only 3% of people going through a divorce seek financial advice, although financial advisers play a vital role in helping couples find financial fairness and their advice can be especially beneficial to women.
31% of women said: “They are financally worse off in the year following their divorce compared to 20% of men.
Involving us, as your financial adviser in early divorce proceedings can be more valuable than you think. A solicitor should suggest seeing a financial adviser or provide a referral for advice to divorcing clients to help both men and women build a more stable financial future.
Divorce takes on emotional toll on both parties. As advisers, we must be sensitive and empathetic to your specific needs and circumstances. Whilst providing clear explanations about the advice process and discuss pension sharing options and help you understand your unique financial situation and the long-term financial impact of any financial decisions during divorce.