Older Canadians Who Divorce Face Financial Woes

They’re called “grey divorcees.” Men and women who divorced in their 50s or later, and now they’re struggling with money.

While most of the media coverage about divorce focuses on younger couples with children, and the financial burden that involves, it turns out there’s never a good time for marriages to disintegrate.

A new survey by the Investors Group reveals80 per cent of grey divorcees plan to delay retirement because they need to work longer than planned – and 62 percent say their post-divorce savings and investments aren’t enough 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,” says 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.”

Other survey findings…

Fifty-four percent of those who divorced at or past the age of 50 found it difficult to make financial decisions surrounding their divorce, and when it came to organizing their finances post-divorce or separation, almost one-third (31 per cent) found this task overwhelming.

Jeffrey Schwartz, executive director of Consolidated Credit Counseling Services of Canada, isn’t surprised at these findings.

“Divorce is a common cause of financial distress for many of our clients,” Schwartz says. “It’s hard enough to split joint property and figure out your individual finances. But when you add in the emotional stress from such a difficult decision, many people find themselves dealing with overwhelming debt.”

That’s why Consolidated Credit offers a free booklet called
<href=”#search=%22divorce%22″>Divorce and Your Credit, which you can download for free. For free credit counselling, talk to a trained counsellor at 888-287-8506.

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