Pension planning for people going through divorce has specific considerations that standard guides often miss. This page covers everything relevant to your situation with up-to-date guidance for 2026.
- Tax relief turns £80 into £100 (£60 for higher-rate payers) — use it
- Check ongoing charges — old pensions drift expensive
- Check your State Pension forecast — filling NI gaps is often exceptional value
- Capture the full employer match before any other saving — it's an instant 100% return
What the Comparison Sites Won't Tell You
The State Pension forecast is a to-do list, not just a statement: gaps from career breaks can often be filled — buying back years is frequently the best annuity money can buy. Ten minutes on GOV.UK now can be worth thousands in retirement.
The quietest number on your statement is the most important: a 1% fee gap can consume a quarter of a lifetime pot. Older workplace pensions from the 2000s are prime candidates for expensive drift.
Unclaimed employer match is a pay cut you volunteered for: contribute enough to capture the full match — £1 becomes £2 on day one — before any other investing.
Key Pension Considerations for Divorced
| Provider | Annual Fee | Type | Rating |
|---|---|---|---|
| Hargreaves Lansdown | 0.45% p.a. | SIPP | 5★ |
| AJ Bell | 0.25% p.a. | SIPP / LISA | 5★ |
| PensionBee | 0.50–0.75% p.a. | Combine pensions | 4★ |
| Aviva | 0.40% p.a. | Workplace / SIPP | 4★ |
| Vanguard | 0.15% p.a. | Low-cost index | 5★ |
Your Pension Options
- Review your current pension provisions and projected retirement income
- Consider consolidating old pensions — easier to manage and may reduce fees
- Check your State Pension forecast at GOV.UK
- Maximise pension contributions — you get tax relief at your marginal rate
- Consider whether drawdown or annuity is right for your situation
Free Pension Tools
Use our pension calculator to model different retirement scenarios. The government's free MoneyHelper service also offers free pension appointments.
Frequently Asked Questions
What is pension tax relief actually worth?
Every £80 you contribute becomes £100 in the pot at basic rate. Higher-rate taxpayers reclaim another £20 through self-assessment — the most generous mainstream tax break available.
When can I access my pension?
Currently from age 55, rising to 57 in 2028. The first 25% is tax-free; the rest is taxed as income, so pacing withdrawals matters.
Is the State Pension enough to live on?
Not for most lifestyles — it covers roughly a minimum standard only. Check your forecast on GOV.UK; filling National Insurance gaps can be exceptional value.
Should I consolidate old pensions?
Usually, but check first. Beware exit fees and final-salary schemes, which you should almost never transfer out of.
How much should I pay into a pension?
A rough rule: take the age you begin saving, divide by two — that's your target % of salary, including employer contributions. Anything above the auto-enrolment minimum accelerates things sharply.
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