Women who divorce their partners later in life could be missing out on considerable additional payments to their state pension, new research has shown.
Interactive Investor shared the findings of research conducted by pension consultancy LCP, which discovered that women who reached state pension age before 6 April 2016 and got divorced thereafter could be missing out on as much as £50,000 in payments from the government over the course of their retirement.
Under the system in place for women who reached state pension age before this date, there is a provision for divorced women to receive additional money if they would not otherwise receive a full state pension.
However, to qualify for this benefit they need to notify the Department of Work and Pensions of their divorce, with the organisation finding that many are unaware of the benefit available to them and also unaware that they need to take action to access it.
Former pensions minister and partner at LCP Steve Webb commented: “Every year thousands of women over state pension age get divorced, but many may not be aware that they can qualify for a state pension boost as a result.”
Under the old system, a woman who gets divorced after reaching state pension age is able to use her ex-husband’s National Insurance record to enable her to claim a full state pension, rather than the standard married woman’s rate, which is lower.
As the BBC reported last month, Citizens Advice has seen a significant increase in the number of searches for divorce guidance since April, indicating that there could be a rise in the number of couples seeking a divorce in the UK in the coming months.
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