Agreeing a fair separation of pension wealth is more important than ever as the average age for divorce reaches its highest ever number for men and women.

New data released by the Office of National Statistics reports that the average age of divorce is now 45 years and 11 months for men, and 43 years and six months for women.

The UK holds £11.1 trn in household wealth and private pensions represent the biggest single component – about 40% of that total.

Commenting on the report, insurer Aviva said that agreeing a fair separation of pension wealth is important for both parties.

It estimates that a typical couple could have around £120,000 in combined private pension assets if they were to divorce in their 50s and assuming they married when aged 30.

Alistair McQueen, head of savings & retirement at Aviva said: "It is typical for our wealth to grow as we age, so a rising average age of divorce will therefore typically bring with it a larger pool of wealth to separate."

"With the average age of divorce at an all-time high, it is fair to assume levels of wealth at a time of divorce may also be at an all-time high."

McQueen added that one in three marriages from the late 1990s has since ended in divorce.

"Many people in their 50s may have combined private pension assets worth more than £120,000, so agreeing a fair separation of this pension wealth will be a key step in finalising a divorce, and will be critical to the future financial well-being of both parties," he said.

In 2015, the number of divorces of opposite sex couples in England and Wales decreased by 9.1% to 101,055 compared with 111,169 in 2014.

First published 23.06.2017

Lindsay.sharman@wilmingtonplc.com