Rising divorce rates for the over 50s are impacting on retirement savings and pensions.
Over 50,000 over 50s were divorced last year – a rise of 10 per cent on 1999 – with the result that more new singles are taking responsibility for their personal finances.
Many are setting up a home, opening bank and savings accounts and considering their financial futures for the first time, says the study by Tesco Bank.
Women are likely to have more financial difficulties following a marital breakdown as only a quarter (26 per cent) were responsible for big financial decisions while married.
One in four admit they never considered saving, a third had never applied for a mortgage and 10 per cent have never had any financial products or accounts in their name.
The findings are part of the bank’s continuing look at family finances.
Tesco Bank’s George Gordon said: “We commissioned the ‘Family Matters’ series of research to get a better understanding of some of the financial pressures faced by our customers.
“The second report in our series sheds light on a growing trend of later life separation and the financial pressures this can create for the over-50s; particularly those who have had limited financial independence in the past.”
Taking control over finances is empowering for many new singles, especially women, according to the study.
Around two thirds (63%) of women divorcing in their 50s said dealing with their finances eased them through painful process, but only around one in three (36%) of men agreed.
Many women (64%) commented divorce gave them a sense of financial freedom, compared with half of men.
Sue Hayward, who writes about money, consumer and family finance issues said: “There’s usually one partner who holds the purse strings in a relationship and it can be daunting if you’re left financially single when you separate. The trick is to sort your finances in bite-sized chunks; tackling one area at a time and make use of all the help that’s available.”
Related Posts :
