NFM (National Family Mediation) reports that in 2023, the pension became a focal point in 78% of the 9,000 cases they dealt with, with the percentage further increasing to 86% over the last nine months.
A spike caused by the recent change in government, and the ongoing economic challenges and increased political focus on pensions, according to the charity.
The release of this data coincides with the start of Pension Awareness Week (9th September), aimed at raising awareness about the importance of pensions and financial well-being in retirement.
NFM CEO, Sarah Hawkins, says that pensions are becoming a frequent point of conflict during mediation, particularly for older couples. “Given the current financial climate and ongoing debates around state pension pots, more families are understandably anxious about securing financial stability as they approach retirement. Pensions are now a significant area of contention, especially as issues like child custody become less relevant for older couples.”
Sarah points out that, while mediation is gaining popularity, many individuals still resort to costly legal battles to protect their pensions, often underestimating the time and expense involved.
“People want to safeguard their assets, but lengthy court proceedings can drain the very resources they’re trying to protect. Mediation is a much more efficient way to reach fair agreements and keep more money in the pot for both parties. However, many people are unaware that mediation is an option or assume they’ll need a separate lawyer at some point,” she explains.
“Our mediation clients can also use NFM LegalEyes to formalise the decisions they’ve made regarding finances, property, and children. This service provides access to expert legal advice from a panel of qualified solicitors to secure a consent order.”
Sarah further stressed that obtaining a consent order is a crucial, often overlooked, step in the divorce process.
“Many people assume that once the divorce is finalised, that’s the end. They don’t realise that without a financial order, an ex-spouse can return, even years later, to claim assets, including pensions.
“It’s vital to secure that consent order before the divorce is finalised. NFM LegalEyes makes this possible using the same collaborative approach as mediation, avoiding the need for individual solicitors and the emotionally draining and costly legal battles that can arise.”
NFM further highlights the importance of mediation in resolving pension disputes and offers solutions such as Pension Offsetting, Pension Sharing, and Pension Earmarking/Attachment Orders. These options help couples navigate the complexities of dividing pensions without incurring the high costs of legal proceedings.