According to new research, divorced women are missing out on an estimated £5 billion a year because pension savings are often overlooked during divorce settlements.

A study by Scottish Widows has found that seven out of 10 couples do not bring pensions into divorce settlements even though they can potentially be one of the biggest assets a couple can have, with the value of a married couple’s retirement plans totaling £132,000

This is compounded in later life because women tend to be less prepared for financing their retirement plans than their male counterparts: nearly 25% say they were unable to save into a pension plan following the divorce double the rate of divorced men (12%).

Reasons for this include the prevailing gender pay gap, and taking maternity leave and career breaks, which reduce women’s lifelong earning potential. That reflects in the fact that 40% of divorced women say their retirement prospects deteriorated as a result of a divorce, compared to 19% of men.

The research further found that 16% of women lost access to any pension funds, with 10% left facing retirement relying completely on the State Pension.

According to Scottish Widows, there are ways in which some pensions can be split including personal pensions, workplace pensions and any additional state pension, although you will need to apply for a pension sharing order from court. However, Ministry of Justice figures show that a mere 11,503 pension sharing orders were issued in 2016/17 just 11% of the total number of divorces that year.

Pension offsetting offers a more straightforward route: this is where one person takes the pension fund value  in exchange for another asset, although this may mean that the person acquiring the asset has no source of retirement income to derive from that later on.

Pension sharing is another option: this is where a percentage of the savings are transferred into a separate pension in your name, allowing you to take a retirement income from it at a time of your choosing.

At the very least, couples should address the issue of pensions when going through a divorce and ensure they get expert advice on the solution that works best for them.

Hopefully you will not be one of those at risk, but if you feel you may be then you can try different scenarios in RetireEasy LifePlan Basic, Classic or Premium to see what effect this may have on your finances.

If you are not already a registered user go to RetireEasy LifePlan Premium features page to see all that it provides.

If you currently have Basic or Classic LifePlans, then login and go to your dashboard; click Upgrade my account; select Upgrade to Premium and follow the prompts.  Premium costs just £3.99 per month.