Marking three years since the introduction of no-fault divorce, Legal & General shone a spotlight on the disproportionate financial impact of separation on women. While divorce has become more accessible procedurally, the financial realities remain starkly unequal. Women’s incomes are slashed by half post-divorce, compared to 30% for men, leaving nearly one in four women financially vulnerable and 19% unable to afford basic essentials.
Despite these consequences, pensions are frequently left off the negotiating table, with just 13% of couples considering them during divorce. Legal & General’s campaign aimed to raise awareness of this critical oversight, promote financial education, and empower women to secure their futures—now and in retirement.
Challenge:
- Financial Vulnerability: One in four women are left financially exposed after divorce, with incomes halving compared to a 30% drop for men. Nearly 20% of women cannot afford essentials like rent or heating.
- Hidden Labour Gap: Just 24% of women were the main earners pre-divorce. After separation, they’re twice as likely to reduce work hours or sacrifice career progression to manage childcare.
- Pension Neglect: Only 13% of couples consider pensions during divorce, and 28% of women give up access to their partner’s pension, despite already facing a gender pension gap.
- Retirement Risk: These choices have long-term effects, with 13% of women worried about the financial implications of retiring alone, compared to just 8% of men.
Key Statistics:
• Women’s household incomes fall by 50% post-divorce.
• 19% of women cannot afford essentials following a split.
• 63% of women feel the financial pressure of living without shared expenses.
• 28% of women give up pension access in divorce, compared to 17% of men.
• Only 13% of couples discuss pensions when dividing assets.
Action:
Legal & General brought real-life experiences to the forefront, sharing the story of case study Karen, who protected her pension in divorce by offering her ex-husband a lump sum. Her experience was supported by expert insight from Lorna Shah, Managing Director of Retail Retirement, helping make the complex issue of pension inequality more relatable and easier to understand.
Timed around the third anniversary of no-fault divorce legislation, the campaign drew national attention to the financial impact of separation on women, particularly the risks of giving up pension rights and the financial strain caused by caregiving responsibilities. Backed by new research from Opinium, the campaign was strengthened by regionally relevant case studies from Yorkshire, North Hampshire, and Scotland, helping Legal & General raise awareness of systemic inequalities and encourage women to prioritise pensions in divorce planning.
Results:
Extensive Media Coverage: The campaign secured 451 media opportunities, reaching a combined audience of 543,792,123. Coverage appeared on Sky News Radio, BBC Surrey, Global Wales, Global Hub, Southside, Siren, Lincs FM, BHBN, WCR FM, KMTV, and That’s TV Hubs.
Driving Awareness of Pension Inequality: The campaign highlighted that a quarter of women give up pension rights in divorce and 45% reduce working hours due to caregiving. These figures raised awareness of the financial toll divorce takes on women and the need to prioritise pensions in settlement planning. Real stories from Karen brought the issue to life and encouraged proactive financial decisions.
Key Takeaways:
• Divorce Hits Women Harder: Women’s incomes take a greater hit, with added career and care responsibilities further compounding financial stress.
• Pensions Must Be a Priority: The campaign highlighted a major blind spot in divorce settlements, advocating for equal consideration of long-term assets.
• Lived Experience Drives Action: Personal stories from women who protected their pensions or suffered from inaction brought the data to life and encouraged proactive planning.
