A retirement crisis is looming for thousands of divorced women in the UK, with a staggering £53,000 gap in pension savings compared to their male counterparts. This issue, often overlooked at the time of divorce, has long-term financial implications that are now coming to light.
New data reveals a sharp increase in the pension savings gap after marriages end, leaving divorced women significantly worse off in their golden years. The research, published by now:pensions and the Pension Policy Institute, shows a stark disparity, with divorced men holding median pension wealth of £85,800, while divorced women struggle with just £32,640.
But here's where it gets controversial... despite pensions being the second most valuable asset in a marriage, only 11% of divorce settlements in 2024 and 2025 included pension attachment orders. An astonishing 71% of divorces completely ignored pension assets, focusing instead on property division.
This oversight has severe consequences for women's financial security in retirement. Working patterns play a crucial role, with three times more divorced women employed part-time compared to men, leading to lower incomes and reduced pension contributions.
The 'gender pension gap' is a real and present issue, and it's time to address it. Current rules require workers to meet certain criteria for automatic pension contributions, but many groups, including divorced women, are left struggling to save for retirement.
Samantha Gould, Mercer's UK Head of Campaigns, emphasizes the need for change: "We support the automatic consideration of pension assets in divorce, a step towards narrowing the savings gap and ensuring divorced women can retire with dignity."
What do you think? Is this a fair and necessary measure to address the gender pension gap? Share your thoughts in the comments!
