Pensions and divorce
Important information - the value of investments can go down as well as up so you may get back less than you invest. Eligibility to invest in a SIPP and tax treatment depends on personal circumstances and all tax rules may change in the future. You cannot normally access money in a SIPP until age 55 (57 from 2028).
Over the course of a marriage/civil partnership, pensions can grow to be substantial, and in UK divorce settlements they are counted as assets.
After seeking legal advice to understand how you may be affected and what your rights are, we hope this guide on how pensions can be split between you and your ex-partner will help.
Remember to change your expression of wish - the named person who will receive your pension payments in the event of your death - as soon as you start seriously considering ending your marriage/civil partnership.
What type of pensions apply?
You'll need to track down any pensions that either of you have ever paid into as a 'member' of a scheme.
The most common personal or company pensions can be shared in a divorce settlement.
But the following pensions cannot be shared:
- Basic State Pension (although Additional State Pension can be shared. This could be built up under the old state pension system and is known as a 'protected payment') .
- Graduated pension.
- Widow or widower’s pension that is in payment.
If you're already retired and getting divorced or dissolving your civil partnership, it’s best to get financial advice as this is a complicated area.
Pensions are shared according to the terms of your divorce. But here are some examples of how they could be split.
Offsetting
Pension attachment / earmarking order
Pension sharing
Retirement income options
If you're thinking about accessing your pension soon and want to understand what income options are available, our retirement services team can provide both free guidance or paid-for personalised advice.
Explore our retirement services
Personalised financial advice
For a personalised investment plan for your retirement or other life goals, our financial advisers can help (there's a fee for this service).
If you have more than £100,000 in savings and investments and are looking to invest for the long term, call 0800 222 550 for a free, no-obligation initial chat. The adviser will explain the advice fee structure during this initial discussion. You can then decide if you want to continue.
Save towards your future retirement with a self-invested personal pension (SIPP), or bring your pensions together to make life that bit easier.
Pensions and divorce FAQs
If you’re currently receiving death benefits from a deceased member’s pension, these cannot be shared when you divorce.
If your ex-spouse reached state retirement age before 2016 you can use their National Insurance contributions to increase your basic State Pension. This won’t reduce the amount of State Pension either of you gets. However you won't be able to do this if you remarry or enter into another civil partnership before you reach your State Pension age.
If you're currently going through a divorce or have just finalised yours, we look at the financial topics you and your legal adviser might explore.
Important information - this information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.
