POUND NOTES
Three out of four women wouldn’t be able to cope in retirement without their partner’s pension to boost the household budget. That’s compared to less than half of men who said they would struggle with just their own pension income.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, which carried out the study, says: “It’s not uncommon in couples for one partner to take charge of certain aspects of overall financial planning but relying on a partner’s pension risks leaving you in real financial difficulty.”
Women are affected by this disproportionately, facing challenges in building up pension pots because they are more likely to spend periods out of the workforce caring for family and, when they return, it’s often to lower-paid, parttime jobs.
Also, pensions are rarely spoken about in divorce proceedings, as people tend to focus on assets such as the main property, sorting out immediate concerns rather than looking longer term.
But pensions can be one of the largest assets and should be part of any negotiations.
BOOST YOUR PENSION
Check if your employer will pay more than the minimum autoenrolment levels – some will match your contributions up to a certain level.
A spouse or partner can contribute to your pension, up to £2,880 (with tax relief that’s £3,600), which could help during periods when you are not working.
Keep track of old pensions when moving jobs.
Ensure pension providers always have your current contact details. Use the Pension Tracing Service to track down lost pensions via gov.uk.
Ensure you get National Insurance credits to build up your state pension when you are a stay-at-home parent with children under 12 by ensuring Child Benefit is in your name.