Thursday, January 28, 2016
Divorces are skyrocketing for people in their 50s and 60s. Between 1990 and 2012, the number of divorces among people 55 to 64 more than doubled and tripled for those 65 and older, according to a study by Susan Brown, I-Fen Lin and Krista Payne of Bowling Green State University.
On top of the personal pain, divorcing spouses often face extraordinary financial pain.
As the Bowling Green researchers’ report, Marital Biography, Social Security and Poverty, noted: “Those who divorce earlier in adulthood have more time to recoup the financial losses divorce usually entails. In contrast, those who divorce later have fewer years of working life remaining and may not be able to fully recover economically from a gray divorce.”
Said Christine van Cauwenberghe, assistant vice president of tax and estate planning with the Investors Group financial advisory firm in Winnipeg, Manitoba: “Going through a divorce can be difficult at any age, but older couples face unique challenges in retirement planning as a result of later-in-life separations.”
Van Cauwenberghe added that because divorce is an emotional process, it “can cloud your ability to make sound financial decisions that will ultimately affect your future.”
That’s why, if you’re divorcing in your 50s or 60s, it’s crucial to reassess your financial plan to ensure that it reflects your new direction in life.
Although the freedom divorce offers may be refreshing, the danger in becoming single at a later age is being one step closer to retirement without a partner and potentially with half the income.
Read more here.