According to a new survey, individuals who are age 50 or older when they divorce imagine that they will have a hard time having a secure retirement. Calgary residents who get divorced later in life may be affected to a greater degree due to the need to pay spousal support and the loss of retirement savings. Therefore, many of these individuals think that they will have to work longer than they planned and that their savings may not sufficiently fund their later years.
The Investors Group conducted the survey. The survey was given to more than 1,000 respondents. These individuals had either divorced or left a common law relationship after the age of 50. About 80 percent of these individuals said that they planned to work longer than they originally anticipated. Additionally, 62 percent of individuals believe that they will no longer have enough savings and investments to support them through their retirement years.
Another problem that the survey revealed was that many individuals lacked confidence in their ability to handle finances after divorce. About 44 percent of the survey respondents said that it was difficult for them to make financial choices that involved their divorce. Even 31 percent of individuals found it overwhelming to organize finances after divorce. Individuals who considered themselves to be "bitter" were more likely to have difficulty with these tasks. The majority of individuals in this demographic adjusted their retirement plans, including scaling back the lifestyle they planned for their retirement.
The survey also found that many individuals were much more confident about their retirement after they sought advice before they finalized their divorce. These individuals may consult with a divorce lawyer to determine how the divorce might affect their financial future.
Source: Life Health Pro, "‘Grey’ divorcees face retirement shortfall", Maria Wood, November 27, 2013