Pension inequality after divorce still leaving women behind, warns family lawyer ahead of International Women’s Day

With International Women’s Day 2026 approaching, Rachel Buckley of The Family Law Company is urging divorcing couples to pay closer attention to pensions, warning that women continue to face a significant shortfall in retirement savings after separation.

Although pensions have been recognised as a matrimonial asset in England and Wales since pension sharing was introduced in 2000, inequality remains widespread. Research from now:pensions and the Pensions Policy Institute shows divorced women face a pension gap of 61 per cent compared with divorced men, equivalent to an average shortfall of £53,160.

Average pension wealth stands at around £32,640 for divorced women, compared with £85,800 for divorced men.

Rachel said: “Pensions are often one of the most valuable assets in a marriage, yet they are still frequently overlooked during divorce. While the legal framework exists to share them, that doesn’t mean they are always properly considered in practice.”

Women are more likely to experience lower pension accrual due to part-time work, career breaks for caring responsibilities and fragmented earnings that can fall outside automatic enrolment thresholds. This can result in a substantial imbalance when relationships end.

Rachel explained that financial settlements often prioritise the family home, an understandable decision particularly where children are involved, but one that can create long-term inequality.

She explained: “It’s easy to focus on property because it feels immediate and tangible. However, £1 of equity in a home is not necessarily equal to £1 in pension value, particularly where a pension provides guaranteed income for life.”

Courts will consider pensions alongside all other matrimonial assets. There are three main approaches the court can take:

• Pension Sharing Orders: transferring a percentage of one pension into the other person’s name, often providing independence and a clean break
• Pension Attachment Orders: earmarking future pension payments for a former spouse, without full financial separation – this will need to be supported with a life policy as it does not survive after the death of the pension holder.
• Offsetting: balancing pension value against other assets such as property, which requires careful valuation and specialist input.

Rachel added that headline pension values such as cash equivalent transfer values do not always reflect the true long-term worth, particularly for defined benefit schemes. “Retirement can feel distant at the point of divorce, but the decisions made then can shape financial security for decades. Divorce is a moment of change, but it is also an opportunity to ensure future stability.”

While the issue disproportionately affects women, Buckley emphasises that pension awareness benefits both parties and supports fairer outcomes overall.

“The gender pension gap following divorce shows awareness alone is not enough. When pensions are properly addressed, we see far stronger long-term outcomes. When they are not, the consequences can be significant.”