Most Canadians who divorce at the age of 50 or later find themselves forced to delay retirement and change plans about their golden age, according to a new study.
A 2013 survey by Investors Group reveals that 80% of so-called grey divorcees plan to delay their retirement because they need to work longer than expected. And 62% of grey divorcees say their post-divorce savings and investments will no longer be sufficient to fund their retirement.
The survey also shows that 54% of those who divorced at or past 50 find it hard to make financial decisions about their divorce. Almost one-third find it difficult to organize their finances after a divorce or separation.
Additionally, 53% of grey divorcees have had to adjust their retirement plans, and within this group, 55% had to completely change their plans.
“Divorce is an emotional process that can cloud your ability to make sound financial decisions that will ultimately affect your future,” says Christine Van Cauwenberghe, assistant vice-president of tax and estate planning at Investors Group.
The survey also shows that, generally, the more bitter the divorce, the bigger the financial problems are. More than one-third of respondents classify their divorce as bitter. Within that group, as many as 80% find it difficult to make financial decisions about their divorce, compared with 54% of all grey divorcees.
Related article: