The inclusion of pensions and cohabiting couples in financial settlements could help narrow the gender pensions gap and better reflect modern family life, People’s Pension chief operating officer, Angela Staral, has argued.

The comments were made in response to the Ministry of Justice’s A fairer end to relationships consultation, which considered reforms to financial arrangements following divorce and dissolution, financial provision for cohabitants on separation, and inheritance provision for cohabitants on death.

People’s Pension chief operating officer, Angela Staral, said: "Recognising pensions and cohabiting couples in financial settlements is a welcome step that could help reduce the gender pension gap and make scheme administration better aligned with modern family lives.

"Pensions are one of the most valuable assets most couples own, yet they remain largely overlooked today, with only around one in nine divorcees making arrangements for pension sharing.”

Staral explained that women in their late 50s have, on average, less than two-thirds of men’s pension savings, largely due to career interruptions for childcare.

Fair treatment of pension assets at relationship breakdown could help reduce gender inequalities in retirement income.

Staral continued: "The consultation provides little detail on how the proposals would work in practice. Divorce and death claims are already among the more complex areas for pension scheme administration, where complications can cause delays and frustration for members.

"We therefore urge the government to work closely with the pensions industry to develop practical solutions that improve outcomes without increasing administrative complexity or regulatory burden."

Last week, the Society of Pension Providers (SPP), responding to the same consultation, argued that pension needs should be given “equal prominence” in family law, calling for stronger pension protections when marriages and cohabiting relationships break down.

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