New rules that ensure pensions are divided fairly when couples divorce, are not being taken advantage of by women, according to new research.
Financial planning firm Killik & Co found that women fail to take advantage of these pension rules, creating a "pensions underclass" among women.
Killik found that since the regulations came into force in December 2000, there had been over 650,000 divorces that involved pension sharing. Figures released by the Department of Constitutional Affairs however state only 6,819 divorces involved pension sharing.
The director of Killik, Malcolm Cuthbert, said: "Whilst in some divorces pensions count for little as the couple are younger, after the matrimonial home, pensions are normally the biggest asset in a divorce settlement."
Before the new legislation was introduced, even though women were entitled to a part of their partner's pension, they had to wait for their spouse to retire and had no control over their benefits.
Mr Cuthbert added: "The legislation is there to allow the value of a pension, along with other assets, to be split fairly after marital breakdown and provide a clean break."
Killik & Co is an independent firm offering stockbroker services in addition to asset management and financial planning advice. Their brokers build longstanding relationships with their clients based on a principle of integrity, trust and accessibility.
Killik welcomes all types of investors and have no minimum portfolio requirement.
Divorced women "lose out on pensions"
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Divorced women "lose out on pensions"
Fri, 20 May 2005
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