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Retirement tips for divorcing couples as many unaware split can affect pension

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dailyrecord.co.uk

New research conducted on behalf of Aviva has discovered that one in six (15%) divorced people did not realise their pension could be affected by splitting up.The survey of more than 1,000 people across the UK who have gone through a divorce found that more than a third (34%) had made no claim on their former partner's pension.It also found that some eight per cent of divorcees do not have their own pension savings - and had been relying on their partner to finance their retirement.

As a result of divorce, nearly one in five said they will be, or are, significantly worse off in retirement.Aviva said it is important for couples who are splitting up to understand the impact that it will have on the family finances, including pensions and later-life income needs.Figures from the Office for National Statistics (ONS) show that the UK currently holds £15.2 trillion in household wealth, with private pensions making up around £6.4 trillion (42%) of that total.Men are aged 47 on average when they divorce and women are typically aged 44 - ages at which the amount of pension wealth built up may be significant.To supplement their income following a divorce, a third of divorcees (32%) said they dipped into their savings, one in five (20%) used credit cards for everyday living expenses and a similar number (18%) borrowed from friends or family.Alistair McQueen, head of savings and retirement at Aviva said: "The breakdown of a marriage is often referred to as one of the most traumatic and stressful events anyone can go through."Divorce can also be a costly experience, often including legal fees, a new home, a new car and new childcare costs.

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