What happens to your pension if your relationship ends?

The issue of pensions and divorce or relationship breakdown is something that crops up a lot. If you are happy with your partner, then it may seem inconceivable that you may split, but it’s something you need to be prepared for financially. If there is an overreliance on one partner’s pension for retirement, then if you do part ways you could find yourself very close to retirement with precious little in the way of income.

This is a risk for a lot of people, with just over a quarter of people saying they weren’t reliant on their partner’s pension, according to recent research from Hargreaves Lansdown. Men were far more likely to say they would be OK, with 31% saying they weren’t reliant on a partner’s pension compared to 22% of women.

If you are planning for retirement together then to an extent there will be reliance on both people’s pension to make the plan work, but ideally both partners also need to be in a position where they could get by in retirement on their own if they had to.

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However, 14% said their partner would be paying most of the costs in retirement and 5% said they didn’t have a pension at all.

It's an issue that should get better with the introduction of auto-enrolment, as more people are now saving into a pension, but it’s important to engage and get the most out of it.

If you both have decent pensions and remain together then it makes for a better retirement. Both people having access to their own money also gives flexibility and independence and if you do split up at least you have your own savings to fall back on and don’t have to start from scratch.If there's an overreliance on one partner’s pension and you end up breaking up, you could find yourself close to retirement with little in the way of income.·Halfpoint Images via Getty Images

If you do part ways with your spouse or civil partner, then it’s also important that pensions are considered as part of any divorce settlement. Other assets such as the family home often take centre stage but pensions should also be included. There are several ways that pensions can be divided up between partners if needed.

The other big factor to consider is what would happen if one partner dies. If you are married, then the surviving spouse would be accounted for, but if you are a cohabitee then this might not be the case. You can live with your partner for years and raise a family together but there is no such thing as common law marriage and this means a cohabiting partner could be left with nothing.

This is why it’s hugely important that documents such as expression of wish are kept up to date so administrators have a clear idea of what your circumstances are and can distribute benefits in line with your wishes. Not keeping these forms up to date risks an ex-partner getting the money at the expense of a current one. This can cause a lot of worry and potential financial hardship.

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Having your own pension provision can really help you survive these financial storms and give you much needed breathing room while you get them sorted.

Read more:

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