When couples separate, the financial discussions often focus on the obvious things: the family home, savings, debts and workplace pensions. The State Pension can sometimes receive less attention, but it may still form an important part of your future income. If you are going through a divorce or the dissolution of a civil partnership, it is worth checking what you are likely to receive.
The State Pension is protected by the Government’s “triple lock”. This means it increases each year by the highest of average earnings growth, inflation or 2.5%. Average earnings have increased by 3.9%. If September 2026 inflation does not exceed that figure, the full State Pension is expected to rise by 3.9% from April 2027. That would increase:
- the full new State Pension from £241.30 to around £250.70 per week; and
- the full basic State Pension for those who reached State Pension age before 6 April 2016 from £184.90 to around £192.10 per week.
The final figures will be confirmed once the relevant inflation figures and Government regulations are available.
No two retirement positions are necessarily the same. Even where separating spouses or civil partners are of a similar age, their State Pension entitlements can be quite different. This may be because one person has spent time out of work, worked fewer hours or has gaps in their National Insurance record. When looking at the overall financial position on divorce or dissolution, future retirement income can therefore be an important part of the picture. A useful starting point is to obtain your own State Pension forecast: https://www.gov.uk/check-state-pension. This will show what you have built up so far, when you can receive your State Pension and whether there may be scope to increase it.
You can also check your National Insurance record online: https://www.gov.uk/check-national-insurance-record. This may identify missing or incomplete years. Generally, at least 10 qualifying years are required to receive any new State Pension, while around 35 qualifying years may be needed for the full amount. However, the rules can vary depending on your individual National Insurance history. In some cases, it may be possible to pay voluntary National Insurance contributions to fill gaps. More information is available here: https://www.gov.uk/voluntary-national-insurance-contributions. However, the fact that you can make a voluntary contribution does not necessarily mean that doing so is right for you or will increase your State Pension.
As family law solicitors, we can explain how State Pension entitlement may be relevant when considering a financial settlement on divorce or dissolution. We do not, however, provide regulated financial or investment advice. If you are considering making voluntary National Insurance contributions, you may wish to speak to the Future Pension Centre and, where appropriate, an FCA-authorised independent financial adviser with pensions and retirement planning experience.
There are limits on how far back voluntary contributions can usually be made, so if your record shows gaps, it is worth looking into them sooner rather than later.
For anyone dealing with finances following divorce or dissolution, understanding your State Pension position is one useful part of building a clear picture of your longer-term financial future.
For further information and advice on this issue, and other family law issues, please contact us for a free initial consultation.