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The Pension Consequences of Divorce

Author

Listed:
  • Davies, Hugh
  • Joshi, Heather

Abstract

Women's disadvantages on the labour market leave them financially vulnerable when divorced. The number of elderly divorced women is growing, but their pension prospects are poor. The paper outlines current British arrangements for pensions and their treatment in divorce, and explains the case for new law on pension splitting. Men's and women's lifetime earnings are simulated on the basis of econometric estimates, as are their pension entitlements under SERPS, Money Purchase and Final Salary Schemes. Pension splitting after divorce is also simulated. It does not invariably guarantee pension adequacy, nor necessarily compensate for the pension mothers forego to rear children. Better Basic Pension would do better.

Suggested Citation

  • Davies, Hugh & Joshi, Heather, 1991. "The Pension Consequences of Divorce," CEPR Discussion Papers 550, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:550
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    Cited by:

    1. Jay Ginn & Sara Arber, 1993. "Pension Penalties: The Gendered Division of Occupational Welfare," Work, Employment & Society, British Sociological Association, vol. 7(1), pages 47-70, March.

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