Newsletter • Quarter 4 • 2025
DIVORCE AND YOUR RETIREMENT SAVINGS
How can divorce affect your retirement savings?
If your divorce order states that your former spouse must get a share of your retirement savings, this is called a claim against your pension interest. The Fund is required by law to pay the specified amount to the non-member spouse.
What is your ‘pension interest’?
- For divorce orders after 1 September 2024, your pension interest is the total value of your retirement savings across all your pots on the date of your divorce.
- Any deduction made due to a divorce order will reduce your benefit proportionally across all your pots.
What makes a divorce order valid?
- Only legally married couples with a court-issued divorce order qualify.
- It must clearly state a claim against the member’s pension interest.
- It must specify the portion of pension interest awarded to the non-member spouse.
- It must name the Woolworths Group Retirement Fund correctly.
Payment process and timeline
Once the Fund receives a valid divorce order, the following steps apply:
- The Fund contacts the non-member spouse within 45 days to confirm whether they want their share paid in cash or transferred to another approved fund.
- The benefit cannot be split between cash and transfer. They must choose one option.
- The non-member spouse must respond within 120 days.
- Once all the required legal documents are received, the Fund will make the payment.
If a divorce order requires a payout, it will reduce your retirement savings.
You will need to save more to get back on track.