Posted by Ros Connors

Listen: Women see annual income fall

The end of a marriage can be a distressing and painful process to go through. But it’s not just the emotional side you need to think about. When facing the end of a relationship, it’s important not to overlook the financial settlement and, apart from the family home, pensions are often one of the biggest financial assets in divorce.

Women are likely to see their annual household income take a serious financial hit in the first year following their divorce, falling by an estimated 41%, compared to just 21% for men, according to research from Legal & General Retail.

Women may have little or no pension pot due to taking time out of work to raise children or care for elderly family members.   The disparity between men and women is caused by a number of factors, one being that men are more likely to be the main breadwinner in families (70% vs. 21% of women), and commonly earn more. This presents a challenge as couples separate their finances and fund two separate households.

Ros spoke to Katharine Photiou, managing director of workplace savings for Legal & General Retail.

Photo by Colin Watts on Unsplash

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