The phenomenon of “grey divorce” has been on the rise, particularly among individuals aged 50 and older.
Research indicates that the rate of grey divorce doubled from 1990 to 2019, and even tripled for adults over 65, according to a study published in The Journals of Gerontology.
The share of Americans divorcing at age 50 and older skyrocketed from 8% in 1970 to a remarkable 36% in 2019.
This upward trend in grey divorce contradicts declining divorce rates among younger age groups, indicating a unique demographic shift towards later-life marital dissolution.
Factors contributing to this trend include increased life expectancy, changing societal norms, and evolving expectations regarding personal fulfilment and happiness in later years.
Economic Implications for Women
Grey divorce often has more negative economic implications for women compared to men. Studies reveal that women experience a significant drop in household income, ranging from 23% to 40%, in the year following a divorce.
Men may see less severe economic effects, with some even experiencing increased income post-divorce.
This disparity is attributed to factors such as traditional gender roles, lower earnings for women due to the wage gap, and limited time for near-retirees to rebuild savings.
The economic effects of grey divorce are exacerbated by factors such as limited employment opportunities for older individuals, especially women who may have spent years out of the workforce to care for the family.
Women often face challenges in accessing retirement benefits and may struggle to maintain financial independence in the absence of spousal support or adequate savings.
Financial Challenges and Empowerment
The financial consequences of grey divorce persist over time, resulting in chronic economic strain for women. Data shows that women’s standard of living declines significantly following a grey divorce, with a 45% decrease compared to a 21% drop for men.
Poverty levels among women who divorced after age 50 are nearly double those who divorced earlier, highlighting the lasting impact on financial well-being.
Active engagement in household finances is important for women to mitigate financial risks and ensure long-term financial security.
By staying informed about financial matters, including savings, investments, and retirement planning, women can better go through the challenges of grey divorce and maintain control over their financial future.
Seeking support from financial advisors or counsellors can provide valuable guidance and resources for managing post-divorce finances and rebuilding financial stability.
