Gray Divorce and Retirement: What the Allianz Study Means for Your Future
A new study by Allianz Life shows that one in three Americans aged 61-75 who have been divorced say it negatively affected their retirement security. And the trend of gray divorce (divorcing later in life) is only growing.
The study highlights a growing concern in family law and financial planning: the impact of divorce on retirement security. As more Americans over age 60 choose to end their marriages, the long-term consequences are becoming harder to ignore.
Keep reading for my four key findings from the study:
The top findings from the Allianz study are sobering:
▪️ More women than men reported being worse off financially after divorce.
▪️ Divorce near or during retirement can halve your income and disrupt decades of planning.
▪️ Many who divorced later said they didn’t fully understand the financial fallout until it was too late.
▪️ 55% of divorced Americans ages 61–75 say their finances are worse off today.
As a divorce lawyer, I see these outcomes play out regularly. Couples spend a lifetime building financial security together, contributing to 401(k)s, pensions, real estate, and Social Security benefits, only to find themselves having to split those assets in the final chapters of their careers. And too often, they do so without sufficient legal or financial guidance.
Divorce is always a painful and emotional process. But many people ultimately tell me they don’t regret the decision, they simply wish they had been better prepared for what came next.
Gray Divorces can disrupt retirement.
The financial aftermath, especially for those nearing retirement, can be jarring. Retirement accounts, once planned for one household, now must stretch across two. Housing needs change. Health care costs may increase. And for many, returning to the workforce becomes necessary, not by choice, but by financial necessity.
I’ve worked with clients who had to delay retirement indefinitely or take on full- or part-time jobs to maintain even a modest standard of living. This strain is especially hard on women who may have been out of the workforce for years raising children or supporting their spouse’s career. Without a strong résumé, they often find themselves in low-wage or physically demanding jobs; roles that are especially difficult to take on in one’s 60s or 70s.
This is why I believe it’s so important for anyone considering divorce later in life to seek out not just legal representation, but coordinated financial guidance as well. Understanding the role of pensions, QDROs (Qualified Domestic Relations Orders), Social Security spousal benefits, and long-term care planning is essential to protecting your future.
The emotional toll of gray divorce is real, but the financial consequences can be even more enduring. The best way to move forward is to be proactive: ask questions, build a support team, and understand the full picture before making decisions that could affect the rest of your life.
Divorce may give you freedom, peace, and a new chapter, but it should also come with a plan for financial stability.
Are you or someone you know approaching retirement and considering divorce?
Let’s talk about how to protect your future.
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The Divorce Artist™️ 