For anyone nearing retirement age, a sudden lifestyle change like divorce can mean impending financial troubles.
Knowing how gray divorce can impact your life savings can help you make the best decisions possible while dealing with the end of your marriage.
According to The Street, a divorce later in life can make it harder to enjoy a stable retirement. Many people put away money thinking they will use it for vacations or other entertainment purposes, but end up struggling to pay fees or alimony once divorced. Older adults typically have less time to recoup their financial losses too, unlike people who divorce earlier in life.
Insurance and spending issues
In the event of a divorce, you will likely need to find a way to purchase your own health insurance. Beyond just that, you may need to purchase new life insurance or other types of long-term plans in order to stay secure in the future. After the proceedings, recently divorced people could worry about how to pay for these expenses. Some older people may also worry about carrying unpaid mortgages into retirement and how all of these monetary issues could affect their credit.
If you and your ex-spouse had children, and one of you stayed home to take care of them, that spouse may struggle to be financially independent after a divorce. Many older adults who were not in the workforce for years often find it tough to obtain the same level of financial stability as before a divorce, and it may be harder to find a job if you have a large gap in your work history.