A Hertfordshire mother has revealed how she lost tens of thousands in pension entitlements during her divorce, a story that reflects a widespread financial crisis for women across the UK.
The Personal Cost of a Pension Oversight
Danielle, 46, thought she was securing her family's future when she sold her flat and moved into a dream home with her husband and baby daughter in 2014. Her world shattered just four months later when her husband announced he was leaving. As the higher earner, particularly after Danielle took a two-year maternity leave to care for their daughter Isabella who had health complications, the financial imbalance was stark.
During the year-long divorce process, her focus was solely on her daughter's welfare and securing a home. The critical issue of pensions was barely mentioned by her solicitor and was quickly 'brushed over'. She finalised the settlement without any claim on her husband's retirement pot. "I could have got tens of thousands of pounds in pension money, but at the time, I just thought pensions were something for old people," Danielle told Metro. "I'm so frustrated with myself that I didn't look into it more."
A National Crisis in Numbers
Danielle's experience is alarmingly common. With roughly 100,000 couples divorcing annually in the UK, pension assets are not divided in a staggering 71% of cases, despite being the second-largest marital asset after property.
New research from the Pension Policy Institute and now:pensions lays bare the devastating consequence. It shows that divorced women have £400,000 less in pension savings than divorced men. The average pension pot for a divorced man reaches £550,000, while divorced women are left with just £160,000 for their retirement.
This chasm is driven by three key factors:
- The persistent gender pay gap.
- Career interruptions and lost pay during maternity leave.
- A higher likelihood of working part-time, both during marriage and after divorce.
Post-divorce, Danielle's ex-husband moved abroad. While he paid child maintenance, she struggled with rent and bills, pouring every penny into her daughter's needs. As the primary caregiver, she has been limited to part-time recruitment roles for a decade. Now working freelance, she finds it impossible to secure employment that fits around her 12-year-old daughter's busy schedule.
The research confirms this pattern: 30% of divorced women work part-time (three times the rate of divorced men) and earn 37% less on average (£31,279 vs. £45,540).
Exclusion and Poverty in Retirement
Like many women, Danielle has never paid into a private pension, relying only on minimum workplace auto-enrolment. However, lower earnings exclude many from even this safety net. Joanne Segar from now:pensions explains that automatic enrolment requires earning £10,000 in a single role. Divorced women are twice as likely as men to be excluded from this scheme (6% vs. 3%).
The ultimate result is a looming poverty crisis. Given that women live longer—to 83 on average compared to 79 for men—their pension wealth must stretch further. A divorced woman's annual pension income averages just £13,893, barely over the UK's minimum retirement living standard of £13,400. In contrast, a divorced man's pension income is £18,573 per year.
Understanding and Claiming Your Rights
Family solicitor Grant Stephens clarifies that pensions are not automatically split 50/50 but are treated as a matrimonial asset. Courts consider factors like career sacrifices for childcare and differences in earning capacity. "The court can make an order... that can divide the pension pot fairly between the parties, regardless of whose name the pension is in," he states.
His advice is unequivocal: "If a solicitor doesn't address pensions then this is not the solicitor for you." Individuals can also instruct a Pension on Divorce Expert (PODE) to investigate their entitlements. While reopening a settled case is difficult, it may be possible if pensions were not originally disclosed.
Danielle, who has "tiny pensions scattered about" from part-time work, is now seeking expert help. She offers stark advice to others: "Make yourself aware of everything to do with joint pensions... If you are married, you're entitled, and you need to research it." Her fear of working beyond the projected retirement age of 68 is a sobering reminder of the real-world impact of this systemic financial oversight.
