The Pensions Policy Institute (PPI) has published new findings in a paper entitled ‘Pensions and Divorce: Exploratory Analysis of Quantitative Data’. The research, which was jointly sponsored by the PPI and the University of Manchester through the Manchester Institute for Collaborative Research on Ageing, provides an analysis of the impact of divorce on wealth and outcomes for divorced individuals.
The aim of the research was to create a baseline to allow for future statistical modelling which could assist in answering important social and policy questions on pensions and divorce. According to the research:
- there is a clear divide between the average pension wealth of men and women. The median pensions age for a man aged 65-69 is just over £212,000, while for women in the same age bracket, the median is £35,000
- the divide between men and women is visible among both married and divorced couples, with married men having the most pension wealth on average among the various groups
- fewer than 15% of couples had approximately equal pensions, with one partner possessing 90% of the pensions wealth in around half of the couples surveyed
- divorced women suffered particularly poor outcomes with those having children at particular risk
Future research is likely to further explore the broader finance of couples and the impact of homeownership, employment and debt in order to build a more solid picture of the effect of divorce on pensions.
The full report can be found here.