Long Island Family Law Attorneys 631.894.4523 Call to Schedule a Consultation

Baby Boomer Divorces and the Effects on Retirement Plans

Baby Boomer Divorces and the Effects on Retirement Plans

Posted By Meyers Law Group, P.C. || 19-Mar-2013

The baby boomer generation is known today as being a group of high divorce rate couples. Many of these spouses are choosing for one reason or another to end their marriage and pursue life alone, even at an older age. According to statistics people over 50 years of age who divorce have doubled over the past 2 decades, and in 2010, one in every four divorces were for those in this age bracket.

The possible causes of this trend vary for every couple, however many people are thinking that it has to do with the fact that people are just living longer lives and after hitting 25+ years of marriage, these couples are ready to move on with life in separate directions. While these couples may want to file a divorce for freedom purposes, there is an important factor that many aren't realizing will be affect—retirement plans.

Grey divorces are having a very negative economic effect on those who are involved, because it is going to affect how they are able to support themselves during retirement. According got Susan Brown, a professor of sociology at Bowling Green State University, she claims that the woman in these divorces will bear the most weight of the economic hardship, particularly those who chose to stay at home in order to raise children rate than working.

The money that the family has been saving in retirement will now be split in half in the event of a divorce, making both the earner and the recipient receive less than had they remained married. Depending on the age of those in the gray divorces, they may be required to work many more years and place a hold on retirement because they will be moving from a dual income household to a single income. Life will change significantly at the time of the divorce, and for many that means losing the opportunity to even retire when they had been hoping to.

Divorced older couples may have to drastically change their way of life and living expenses if they plan on retiring at a decent age. For those who are diligent in their financial planning who planned on retiring at age 65 (assuming they are 60 years old at the time of the divorce) may have to wait until 67 or 68 for their retirement. Those who have done little financial planning may be required to wait even longer before pulling their employment plug and retiring.

According to the CEO of Pathfinder Wealth Management in North Carolina, retiring as a single person is much more expensive than if you are married, by about a 30% increase. When you divorce this increase jumps up to 50% more expensive as a single who is now divorced. How does our cost of living increase so much, then? Consider this, when you divorce you will now have to plan separate vacations with the children, more medical expenses because you don't have the other income to help, traveling in two cars instead of one, etc. All these little details add up, which is why planning for your divorce is so crucial.

Because of the complexity of a divorce for those who have been married for a substantial amount of time, hiring a skilled divorce attorney is all the more important. At The Meyers Law Group we are highly skilled in the area of family and divorce law and we want to offer you the services you need in order to work through his complicating process. Contact us today for the Long Island divorce lawyer you deserve to have on your side!