January 5 Has Been Dubbed “Divorce Day”: Divorced Women in the UK Face a 61% Pension Gap
New research released today on Divorce Day shows divorced women in the UK face retiring with 61% less in their pension than divorced men. Divorce Day marks the first working day after the extended Christmas and New Year break, noted by lawyers for a surge in divorce enquiries.
Today, Now Pensions & the Pension Policy Institute reveal a startling statistic: divorced women in the UK have £53,160 less in pension savings than divorced men. This revelation comes on ‘Divorce Day’, when divorce inquiries peak post-holidays. And insights also come ahead of the forthcoming publication of the 2026 Gender Pensions Gap report.
Key findings from the statistics show that divorced women hold just 39% of the pension wealth of divorced men; the median pension wealth for divorced men stands at £85,800, compared to £32,640 for divorced women. Among married individuals, the women’s pension wealth gap remains significant, with men holding 61% more with £111,540 versus £43,656 for women.
Pensions are the second-largest asset in a marriage after property, yet only 11% of the more than 100,000 divorces in 2024 and 2025 involved pension attachment orders, which allow for the division of pension assets. Further, 71% of divorce settlements do not consider pension assets, often prioritising housing and property instead.
Samantha Gould, Mercer’s UK Head of Campaigns, said: “Since 2019, now:pensions has been a steadfast advocate for underpensioned groups. Our latest research highlights a stark disparity: divorced women’s private pension incomes amount to less than 39% of the average pension wealth held by divorced men. We are committed to promoting greater pension equality for all, regardless of gender. To address this imbalance, we support the implementation of automatic consideration of pension assets in divorce, a measure that could narrow the pension savings gap and help divorced women to enjoy the retirement they deserve.”
With men expected to live to age 79 and women to age 83, and assuming retirement at 66, pension wealth must last approximately 13 years for men and 17 years for women. However, divorced women’s annual pension income of £13,893 falls just over the UK’s minimum retirement living standard of £13,400. For comparison, a divorced man’s pension income is over £18,573 per annum.
The research also highlights employment disparities contributing to pension gaps. Thirty percent of divorced women work part-time, three times the rate of divorced men, and earn 37% less on average (£31,279 vs. £45,540). This lower earning capacity means that divorced women are twice as likely to be excluded from automatic pension enrolment, compared to men (6% vs. 3%).
Joanne Segars OBE, now:pensions Master Trust’s Chair of the Trustee Board, commented: “Automatic enrolment pension saving dictates that individuals must be aged 22 and over and earn £10,000 in a single role. As a consequence, far too many groups in our society experience an uncomfortable reality and they are ‘locked out’ of the pension auto-enrolment system, unable to earn enough to put money aside for later. As a result, these groups find themselves on the wrong side of a growing pension savings gap. At now:pensions Master Trust, our mission is to support for a fairer pension system that enables everyone to get the retirement they deserve.”
Mercer and now:pensions advocates for policy reforms to address these inequalities. Ensuring pension assets are consistently considered as part of all divorce settlements are critical steps toward closing the pension savings gap and promoting financial equality in later life.