‘ Silver- splitters’ urged to check if they are missing pension benefits
WOMEN WHO divorce later in life – so- called silver splitters – may be missing out on significant state pension rights, a former Pensions Minister has claimed.
Sir Steve Webb, a partner at pensions consultants LCP ( Lane Clark and Peacock), said in the late 1990s and early 2000s there were around 4,000 divorces involving women aged over 60 each year in England and Wales, and the annual numbers have since increased.
These women will have tended to come under the old state pension system, having reached state pension age before April 6, 2016, which makes significant provision for divorced women.
If they divorce after reaching pension age, they need to notify the Department for Work and Pensions ( DWP) to potentially benefit from a pension uplift, he said.
Sir Steve, a former Liberal Democrat Pensions Minister, said many women may not be aware of this.
He said he had contacted the DWP to assess the number of divorced women making post- retirement claims for their pension to be reassessed, but it had said it does not keep records of people making applications for uplifts in state pension following divorce.
Sir Steve said: “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.”
He added: “Any woman who reached pension age before April 6, 2016, and has since got divorced should contact the DWP if she is not on a full basic state pension to see if she is entitled to an increase based on her ex- husband’s contributions.”
It comes after a hike in the state pension age to 66. From yesterday, people will be 66 before they start receiving their state pension. Men and women born between October 6, 1954, and April 5, 1960, will start receiving their pension on their 66th birthday. Financial experts say people should check their pension pots are sufficient as early as possible.