Retirement planning after divorce: can I still afford to retire?
Published 19 December 2025
Divorce can have a major impact on your long-term financial future, especially when it comes to retirement. Many people wonder whether they can still afford to retire at their desired age after dividing assets and pensions.
This guide will help you understand how to plan for retirement after divorce by rebuilding your pension, setting achievable savings goals, and protecting your long-term financial wellbeing. With the right steps, you can create stability and regain confidence in your future.
Understanding how divorce affects retirement
The financial impact of divorce on pensions
Pensions are often one of the most valuable assets divided during a divorce. In many cases, one partner’s pension contributions may have been higher due to career breaks or part-time work by the other.
A fair division is essential to ensure both parties maintain future income security. Options include pension sharing, pension offsetting, or pension attachment orders. Each option has different implications for tax and access, so seeking expert advice is vital.
How retirement timelines may shift
After divorce, your retirement age may need to be reassessed. Reduced assets or income might mean adjusting your timeline, working a few extra years, or changing your retirement lifestyle goals.
Revisiting your long-term plan ensures your new financial position aligns with your desired lifestyle and income needs in retirement.
Rebuilding your pension after divorce
Assess what you have
Start by reviewing all existing pensions: workplace, private, and state. You can check your State Pension forecast through the GOV.UK website and gather statements from all private providers.
Knowing your full pension picture helps you plan realistically and identify any gaps in your savings.
Increase your contributions
If you can, boost your pension contributions. Even small increases over time can significantly improve your retirement income.
Consider:
Making additional voluntary contributions to workplace pensions.
Maximising tax relief through personal pension contributions.
Take advantage of employer schemes
If employed, ensure you are enrolled in your workplace pension and consider contributing enough to receive the full employer match. This is one of the most effective ways to grow your pension pot efficiently as you benefit from the tax savings and your employer paying in more too.
Creating a new retirement plan
Reassess your goals and timeline
Divorce often means rethinking what retirement looks like. Consider what is most important - location, lifestyle, or flexibility - and recalculate your budget accordingly.
Set short-term and long-term goals such as:
Paying off debts before retirement.
Building a safety fund for emergencies.
Estimating the income needed for comfortable living.
Build an investment strategy
Diversifying your investments can help rebuild wealth lost through divorce. Speak with a financial planner about balancing risk with growth potential.
Typical options include stocks and shares ISAs, pension funds, or diversified investment portfolios designed for long-term returns.
Understand your risk tolerance
Your new financial circumstances may mean your risk tolerance has changed. Review your investment strategy to ensure it aligns with your comfort level and time horizon.
Managing your lifestyle and income in retirement
Creating sustainable income
When planning retirement after divorce, aim for a mix of income sources such as pensions, investments, rental income, or part-time work.
A financial planner can help you structure withdrawals and manage tax efficiently.
Downsizing or relocating
Many people find that downsizing their home or relocating helps release equity and lower living costs. Consider your lifestyle priorities before making large housing decisions.
Reviewing benefits and entitlements
After divorce, you may be eligible for certain benefits so check your eligibility.
Protecting your financial future
Update your will and beneficiaries
Ensure your will reflects your new circumstances. Update pension beneficiaries, insurance policies, and estate plans to protect your loved ones and prevent disputes.
Build an emergency fund
Having three to six months of expenses set aside helps protect you from unexpected costs and reduces the need to draw from retirement savings early.
Work with a financial adviser
A financial adviser can help you create a personalised retirement strategy that fits your post-divorce financial position. They can optimise tax planning, investment growth, and withdrawal timing.
Quick takeaways
Divorce can impact your retirement savings and pension entitlement.
Review all pension assets and get updated valuations.
Increase contributions and take advantage of tax relief.
Reassess your goals, risk tolerance, and retirement timeline.
Seek expert advice to rebuild financial confidence and security.
Conclusion
Planning for retirement after divorce can feel daunting, but it also offers a chance to start fresh with renewed focus and control.
By understanding your pensions, reassessing your timeline, and creating a realistic strategy, you can build the future you want, on your own terms.
With careful planning and professional guidance, it is possible to retire comfortably and confidently, even after a major life change.
Frequently asked questions about retirement after divorce
Q1. How is my pension divided after divorce?
It can be shared through pension sharing, offsetting, or attachment orders. Each has unique legal and tax implications.
Q2. Can I still retire at my desired age after divorce?
Yes, with a clear financial plan and disciplined saving, you can still reach your retirement goals. You may need to adjust your timeline slightly.
Q3. What happens to my State Pension after divorce?
Your State Pension is based on your own National Insurance record, but in some cases, you may use your ex-spouse’s contributions to boost your entitlement.
Q4. Should I combine my pensions after divorce?
Not always. So it is important that you seek financial advice when reviewing pension pots.
Q5. How do I catch up if my pension was divided?
Increase contributions, review investments, and make use of tax allowances. Professional advice can help you build back effectively.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Will writing involves the referral to a service that is separate and distinct to those offered by St. James's Place. Wills are not regulated by the Financial Conduct Authority.
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