SOURCE Investors Group Inc.
A large majority (80%) of “grey divorcees,” people who divorced at the age of 50 or older, say they will delay their retirement because they need to work longer than planned and more than half (62%) say their post-divorce savings and investments will no longer be adequate to fund their retirement.
“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,” said Christine Van Cauwenberghe, Assistant Vice-President of Tax and Estate Planning at Investors Group. “With limited earning power and less time to recoup their financial losses, grey divorcees need to re-visit their financial plans.”
More than half (53%) say they have had to adjust their retirement plans and of this group, 55% say that their plans completely changed. Almost half (47%) say they will have to scale back on their anticipated retirement lifestyle.
“Divorce is an emotional process that can cloud your ability to make sound financial decisions that will ultimately affect your future,” said Christine.
The divorce process is overwhelming – especially when more than a third of grey divorces were classified as “bitter divorces.” Of those experiencing bitter divorces, a significant majority (80%) say they found it difficult to make financial decisions surrounding their divorces as compared to 54% of all grey divorces.
Almost three quarters (74%) of respondents who sought the advice of a financial advisor during their divorce agreed they were given sound financial advice throughout the process and 82% agreed their advice was helpful post-divorce.
And those who sought financial advice before their divorce were more confident about their retirement with 39% feeling they would still have enough savings and investments to fund the retirement lifestyle they had planned. Of those who did not work with a financial advisor, only 28% believe they still have enough to fund their retirement.
“After any life change it is crucial to reassess your current financial plan to ensure that it reflects your new direction in life,” said Christine. “As you get closer to your retirement years there is a greater urgency to have a financial plan in place that helps you to achieve the lifestyle you envision whether it be together or apart.”
