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Divorced retirees face rising poverty as pension sharing is overlooked

The number of divorced people in retirement has trebled in recent decades, with poverty rates among this group also increasing, according to new analysis.

  • The poverty rate among divorced retirees in England and Wales rose from 20.5% in 2010-2011 to 24.8% in 2024.
  • Women comprise two-thirds of single retirees in poverty and outnumber men by approximately two to one among divorced retirees in poverty.
  • Only 11% of divorcees with a pension yet to be drawn made an arrangement to share it, according to a 2023 study.

New analysis by pensions consultancy LCP indicates that the number of divorced individuals aged 65 and over in England and Wales has trebled since 2002, reaching 1.5 million in 2024. This increase coincides with a rising poverty rate among this demographic.

LCP's analysis of government data shows that the poverty rate for divorced retirees increased from 20.5% in 2010-2011 to 24.8% in 2024. This rise has largely contributed to an overall increase in pensioner poverty, which grew from 15.7% in 2012/13 to 18.6% in 2023/24.

Women are particularly disadvantaged, making up two-thirds of single retirees in poverty and outnumbering men by about two to one among divorced retirees in poverty. Research by Now Pensions and the Pension Policy Institute found that divorced women in the UK typically have £53,160 less in pension savings than divorced men.

Pensions are often overlooked during divorce settlements, despite being a significant asset. A 2023 study by Bristol University found that only 11% of divorcees with an undrawn pension made arrangements to share it. A March 2026 survey of Which? Connect members revealed that only 3% of cohabiting couples had discussed what would happen to their pensions if they divorced or separated.

Why this matters: The findings highlight concerns about financial precarity for many divorced retirees, particularly women, and the need for greater awareness regarding pension sharing during divorce proceedings.

What this means for you: If you are divorcing or separating, it is important to consider pensions alongside other assets like property and savings to ensure a fair financial agreement.

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