This blog was written by Simon Hall, one of our Independent Financial Advisors.
Lisa, age 55, went through a difficult divorce in 2023, after 23 years of marriage. She had stepped back from full-time work to raise her two children and had relied on her ex-husband’s higher earnings to support the household.
When she first came to see me, Lisa felt overwhelmed because she had never paid too much attention to the family’s finances and had left this to her husband. She had various pensions built up from previous employment but had no idea what this meant in terms of her retirement or the best way to access her pension funds in the future.
Her ex-husband had kept his larger pension pot which left Lisa worried about living on just the State Pension and whether she would ever be able to retire comfortably.
Lisa’s goal was clear: achieve a comfortable single-person retirement by age 66, with enough flexibility to help her children occasionally and enjoy travel and hobbies.
The Challenges We Identified
Pension sharing was missed — The divorce settlement focused mainly on the house; no pension sharing order was arranged, leaving Lisa with a much smaller retirement income than her ex-husband.
Contributions too low — She was only paying the minimum 5% into her current workplace pension.
No overall plan — Lisa had never combined her pensions or modelled how much income they would generate. She was also concerned about rising living costs and potential long-term care needs.
Emotional and practical stress — Divorce had left her feeling financially vulnerable for the first time in decades.
What We Did Together
We began with a no-obligation Divorce Recovery & Retirement Review.
Key steps included:
- Reviewing her State Pension forecast and maximising any gaps from career breaks (National Insurance credits).
- Consolidating her pensions into a single arrangement, which was considered suitable for her needs, objectives and attitude to risk.
- Increasing her total pension contributions to 15% of her salary through salary sacrifice, which her employer matched. This also lowered her income tax and National Insurance.
- Setting up a separate ISA for more flexible savings and an emergency fund.
- Modelling realistic retirement scenarios, including different retirement ages, investment growth, and longevity.
We also discussed how she could still benefit from pension sharing rules if any overlooked opportunities existed, though in her case the settlement was already finalised.
The Results
Within two years, Lisa’s combined pension pot had grown to £128,000, primarily driven by increased contributions and supported by market performance. Based on reasonable assumptions, her personalised retirement plan indicates that she is on track towards achieving her desired level of retirement income at age 66, although this is not guaranteed and will depend on future investment performance and other factors. This has given her greater confidence in planning for the future and working towards the lifestyle she would like in retirement.
Lisa says:
“Divorce left me feeling like I was starting from scratch at 53. I was worried I’d have to work forever or live very modestly. The plan we built together gave me back control and hope. I’m now excited about retirement instead of dreading it.”
We now review her plan annually to make any adjustments and to make sure she remains on target to reach her goals. She has even started encouraging her daughter (who is happily married) to protect her own financial arrangements in case of future relationship changes.
Key Takeaways for Divorced Clients in the UK
Divorce often creates a significant pension gap — especially for those who took career breaks for family.
It’s never too late to increase contributions and use tax relief and salary sacrifice to catch up.
Consolidating old pensions may be appropriate in some cases to improve oversight and simplify management.
A clear, written retirement plan removes uncertainty and helps rebuild financial confidence after divorce.
Early advice on pension sharing (ideally during divorce proceedings) can make a huge difference — but even after settlement, strong planning can still transform outcomes.
Important Note: This case study is based on a real client situation with names and certain details changed to protect confidentiality. Individual circumstances vary, and actions taken must be specific to your individual circumstances, objectives and attitude to risk. If you are going through a divorce, you should also seek independent legal advice, particularly in relation to pension sharing orders.