The later-life divorce pushing more than 200,000 people to delay retirement

January 5, 2026

New research from L&G to coincide with Divorce Day (Monday 5^th January) – where family lawyers report a spike in inquiries following the festive season – has found that more than 200,000 people who divorce after the age of 50 (15%) are forced to delay their retirement as a result.

“I don’t think I’ll ever financially recover”

Later-life divorce is on the rise, accounting for 17% of all divorces. However, for over-50s the financial impact of divorce can often change their long-term plans, particularly as they approach retirement with fewer working years available to recover.

On average, those divorcing later in life found that their incomes fell by £7,753 in the year following their divorce, a significant financial dent for those beginning to consider their retirement prospects. One in four people who divorced after age 50 (24%) say it is harder to rebuild savings because they are past their peak earning years. 13% of later-life divorcees (180,883) estimate they will never financially recover.

Financial impacts ripple into retirement

For those divorcing in later life, the financial consequences have a knock-on effect on their retirement. A quarter (23%) of those who divorce over the age of 50 expect to live on a lower income in retirement than originally planned. A third (32%) will need to downsize their home as a result.

Despite the role pensions can play in supporting long-term financial wellbeing, only a quarter (25%) of over-50s who divorce include them in settlement discussions, and almost a third (31%) waive rights to their partner’s pension entirely. Just 8% seek financial advice before making these decisions.

These choices can also influence family plans. One in five (20%) say they may no longer be able to leave an inheritance, while 17% feel they may find it harder to support adult children financially in the future.

Lorna Shah, MD Retail Retirement, L&G said: “Retirement incomes are being stretched further than ever as people live longer and often enter retirement without sufficient savings. A divorce can make this challenge more complex.

Our research shows that separating later in life can influence both immediate finances and longer-term plans. With less time to rebuild savings, many people adjust their expectations: delaying retirement, downsizing their home, or accepting a smaller income than they’d planned for.

However, there are positive steps people can take to protect their financial future. Pensions are often one of the most valuable assets a couple has and should be considered in the same way as the family home during a separation. Only 8% of people who divorced after 50 sought advice on this, yet expert guidance can help ensure decisions are balanced and that both partners understand the long-term implications. Taking advice early can make a significant difference to achieving a fair financial outcome.

If you’re going through a divorce at any stage of your life, careful planning is essential to protect your future– we’ve produced a financial health check tool to help.

As a starting point:

Set a realistic budget that accounts for your new living costs but also any legal fees, shared debts or ongoing commitments
Make sure you have a complete understanding of the costs you’ll incur as you divorce and make sure it covers everything, such as a Clean Break Order, to protect your finances in the future
Review all your assets, including pensions, to ensure nothing is overlooked in the settlement
Update important documents, such as your will and life insurance policies, ensuring your named beneficiary reflects your new circumstances.”