Other things that could affect your pension

What if I get divorced?

If you get divorced or have your marriage annulled, the courts have to take into account the value of all your assets, including the value of your pension entitlement. This is so that the courts can decide how all your assets should be divided.

Since 1 December 2000, couples whose marriages end in divorce or annulment can share the value of their pension entitlement. The idea is to provide greater flexibility and choice for the divorcing couple and the courts. Pension sharing is not compulsory – it is an option available to divorcing couples who have entitlement to second pensions, such as:

• an occupational pension;
• a stakeholder pension;
• a personal pension; and
• the additional State Pension.

Pension sharing does not apply to:

• the basic State Pension, as divorced people can already replace their own contributions record with their husband’s or wife’s record for the period the marriage lasted;
• couples who started divorce or annulment proceedings before 1 December 2000; or
• couples who separate but do not divorce.

Pension sharing only applies to divorce proceedings which started on or after 1 December 2000.

If you want to know more about how divorce affects your pension, you may want to get advice from a lawyer or an independent financial adviser (or both). If you live in England or Wales, you might also find the guide I want to apply for a Financial Order (D190) helpful. Click here for details about how you can get a copy of this guide. In Northern Ireland, a court can make a pension sharing order in connection with proceedings for a divorce or annulment. In Scotland, a financial order can be made as part of divorce proceedings. Another guide you may find useful is Pensions for women – Your guide (PM6). Click here for details about how you can get a copy of this guide.

Bereavement benefits

For married men and women under State Pension age, bereavement benefits are available. Bereavement Payment can also be paid to you if you are over State Pension age and your husband or wife was not entitled to a State Pension based on their own contributions record when they died. You should think about these bereavement benefits as part of your overall financial plans. The system of bereavement benefits does not affect women already getting widows’ benefits under the previous scheme.

For more information, please see the leaflet Widowed? (GL14). Click here for details about how you can get a copy of this leaflet.

Living abroad

If you move abroad to work before you reach State Pension age, you may not build up entitlement to a State Pension (the basic State Pension and any additional State Pension) for those years. However, this depends on your particular circumstances (for example, whether it is a UK company you work for or a foreign one).

If you go to live abroad permanently, you will not get a yearly increase in your State Pension (including your additional State Pension) unless you live in a European Economic Area country (including Switzerland) or a country that the UK has an agreement with that allows for these increases (known as ‘upratings’).

To find out which countries these are, and how UK state pensions are paid to people abroad, please see the leaflet Going abroad and social security benefits (GL29). Click here for details about how you can get a copy of this leaflet.

If you plan to live abroad when you retire, the pension you get from an occupational scheme will increase each year in line with the scheme rules and current legislation.

If you have just come to Great Britain, or are returning after a period abroad, the rules for some benefits are different, even if you are a United Kingdom national. To find out more, please see the leaflet Coming from abroad and social security benefits (GL28). Click here for details about how you can get a copy of this leaflet.