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Following Sir Paul Coleridge's statement on the increase of so called ‘grey divorces' Mike Morrison, head of pensions development, AXA Wealth, comments on the potential impact on retirement savings. "A growth in the divorce rate for the over 60s could have a significant effect on the financial plans of the divorcing parties. Pensions will often be one of the most significant financial assets in a marriage (perhaps after the family home) and are therefore available to be taken into account in any financial settlement when couples divorce. "What may have looked like it was going to be a comfortable retirement could be drastically changed if one of the party's pension scheme becomes subject to a pension sharing order in favour of the other. In such circumstances, professional financial advice could be vital, and it may be a good idea to take advice even before starting the divorce process to avoid any unforeseen consequences. "It is important not to forget the provisions for pension sharing and divorce. A carefully considered retirement plan could be irrevocably disrupted should a couple divorce during retirement." |
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