Divorce among those 50 and older, often called “grey divorces”, involve many unique challenges. For instance, recent research reveals that 80% of people who divorced at the age of 50 or older said they would delay their retirement because they need to work longer than planned, and 62% believe their post-divorce savings and investments will no longer be adequate to fund their retirement.
Those who divorce in their 30's and 40's will have more time to rebuild their financial portfolios, and older investors typically tend to avoid risk, which correlates to lower rates of return. For these reasons, it is even more important to thoroughly analyze your finances, budget appropriately, and consider involving a qualified financial advisor to help addresses these new financial realities.
Just as with all divorces, there is no “one size fits all” solution to the financial challenges, but solutions may include downsizing your residence, re-entering the workplace (or moving from part-time to full-time work), delaying retirement, or reevaluating your investment strategy. Of course, those who divorce at any age should also consider updating their wills and beneficiary designations.
Source: “‘Grey divorce' creates unique financial challenges” by Linda White, published in theToronto Sun.