80 per cent need to work longer than planned
WINNIPEG, Nov. 26, 2013 /CNW/ - A large majority (80 per cent) 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 per cent) say their post-divorce savings
and investments will no longer be adequate to fund their retirement,
according to new research from Investors Group.
"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."
Financial decisions can be difficult on your own
Fifty-four per cent 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.
More than half (53 per cent) say they have had to adjust their
retirement plans and of this group, 55 per cent say that their plans
completely changed. Almost half (47 per cent) 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,"
Bitter divorce equals bigger challenges
When it comes to parting ways, more than a third (35 per cent) of
respondents say they would classify their divorce as bitter. A
significant majority (80 per cent) of that group say they found it
difficult to make financial decisions surrounding their divorce,
compared to 54 per cent of all grey divorcees
Percentage of those who had a
Percentage of all
Managing living expenses post-divorce or separation
Division of assets causing financial stress
Cost of divorce proceedings
No longer having enough retirement savings
Did not encounter any financial difficulties
Experts can ease the process
Almost three quarters (74 per cent) 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 per cent agreed
their advice was helpful post-divorce.
And those who sought financial advice before their divorce were more
confident about their retirement with 39 per cent 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 per cent believe they still have enough to fund their
"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."
About the Survey Methodology
Data for this survey was collected online from October 15 to 29, 2013,
with a total of 1,000 surveys being completed. In order to qualify for
this survey, respondents had to have divorced or separated from a
common law relationship after the age of 50.
About Investors Group
Investors Group, founded in 1926, is a national leader in delivering
personalized financial solutions to Canadians through a network of
approximately 4,600 Consultants located throughout Canada. In addition
to an exclusive family of mutual funds and other investment vehicles,
Investors Group offers a wide range of insurance, securities, mortgage
and other financial services. Investors Group is a member of the IGM
Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of
Canada's premier financial services companies with approximately $129
billion in total assets under management as of October 31, 2013.
SOURCE: Investors Group Inc.
For further information:
Lisa Bodnar or McKenna Wild
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