A stark warning has been issued to divorced women across the UK, as new research exposes a crippling shortfall in their retirement savings. A study reveals they typically have £53,160 less in their pension pots than divorced men, threatening financial security in later life.
The Stark Reality of the Pension Wealth Divide
The analysis, conducted by Now:Pensions and the Pensions Policy Institute (PPI), paints a concerning picture. It found that the median pension wealth for a divorced woman stands at just £32,640. This is a mere 39% of the £85,800 typically held by divorced men. The gender pension gap remains severe even among married couples, with men's median wealth at £111,540 versus £43,656 for women.
Alarmingly, the problem is being systematically overlooked during legal proceedings. The research shows that in over 100,000 divorces in 2024 and 2025, only 11% involved pension attachment orders. In a staggering 71% of settlements, pension assets were not formally considered, with housing often taking priority.
Living on the Edge in Retirement
This savings deficit has dire practical consequences. Given that women generally live longer, their pension savings need to last around 17 years, compared to 13 for men. Yet, the average annual pension income for a divorced woman is £13,893. This is barely above the UK's minimum retirement living standard of £13,400, leaving little buffer for unexpected costs or a comfortable lifestyle.
By contrast, divorced men receive over £18,500 per year on average. Samantha Gould, Head of Campaigns at Mercer UK, described the findings as highlighting a gap with "serious implications" for retirement security. "We are committed to promoting greater pension equality for all, regardless of gender," she stated.
Calls for Systemic Change and Automatic Sharing
Campaigners are now urging for legislative reform to address this entrenched inequality. A key proposal is the implementation of automatic pension sharing in divorce. This measure would ensure pensions are routinely assessed and split as part of the settlement, helping to narrow the savings gap.
Joanne Segars OBE, Chair of Trustees at the Now:Pensions master trust, warned that far too many groups are "'locked out' of the pension auto-enrolment system." She emphasised that this exclusion places them on the wrong side of a growing and dangerous pension savings gap.
The research underscores a critical flaw in how financial assets are handled during divorce, leaving countless women at severe risk of poverty in old age. Experts argue that without policy intervention, this glaring inequality will continue to undermine retirement security for generations of women.
