40% of Americans say that the divisions later in life have derailed their retirement plans
This trend of “gray divorce” has large -scale implications, including the retirement plans, a new survey by the Allianz Life Insurance Company company.
Divorce rates among American and older Americans are increasing, according to a university study in 2022. The study, published in “The Journia of Gerontology”, revealed that between 1970 and 2019, the rate of “gray divorce” had more than doubled among the 50th and over, against five people of divorce for 1,000 to ten divorce for 1,000.
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According to Allianz, 56% of married Americans say that a divorce would derail their retirement strategy. The millennials, in particular, are concerned about the way in which a divorce could have an impact on their savings objectives, 63% claiming that this would affect their ability to retire. This is compared to 52% of Gen Xers which point out that a gray divorce would have an impact on their retirement plans and only 35% of baby boomers.
“No one wants to prepare for a divorce,” said Kelly Lavigne, vice-president of the life of allianz consumers, Kelly Lavigne. “But divorce later in life – especially after retirement – is more and more common. If you have planned retirement as a couple, then divide your assets to finance separate pensioners can give you unless you reach your retirement goals.”
Among those who have already been divorced, 40% of Americans say that this has fully derailed their retirement plans, and 34% say that this has considerably put them back.
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“It may seem cold, but it is important to consider how a divorce would affect your financial future,” said Lavigne. “Those who cross the” gray divorce “do not have time to rebuild the retirement economies by themselves. Trying to finance two separate lives, instead of a spouse, can exhaust retirement accounts faster than expected. They may need to delay their retirement to accumulate more savings and consider strategies of additional risk management to ensure that their funds can last their lives.”
One in three respondents told Allianz that they had no financial plan if they were to divorce. This creates a lot of concern, especially for millennials and genetics.
