While the national rate of divorce is slightly declining, the number of couples going through “gray divorces” is growing, finds new research out today from Allianz Life.
The organization’s 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement notes that the divorce rate among adults ages 65 and older, otherwise known as “gray divorces” has risen in past years. A 2022 study from The Journals of Gerontology revealed that 36% of U.S. adults going through a divorce are over the age of 50. Further, those ages 65 and older are seeing more divorces compared to any other generation.
Divorces can be costly, and many respondents to the Allianz study noted that such a life event could possibly derail their retirement plans. Over half (56%) of those surveyed said a divorce would disrupt their financial retirement strategy, with 35% of Baby Boomers, 52% of Gen Xers, and 63% of Millennials agreeing.
Those who have endured a divorce have said that the process interfered with their financial retirement strategy (40%) while others added that it “set their retirement plans back.” A large number (54%) said they had “substantially” more financial responsibilities after their divorce, and 41% admitted to feeling more financial stress since the life change.
“Those going through ‘gray divorce’ don’t have the time to rebuild retirement savings on their own,” says Kelly LaVigne, vice president of consumer insights at Allianz Life. “Trying to fund two separate lives, instead of a joint one, can deplete retirement accounts faster than anticipated. They may need to delay their retirement to accumulate more savings and consider additional risk management strategies to ensure their funds can last their lifetime.”
Others observed how going through a divorce led them to refocus on retirement, with 44% of divorced Americans in the study saying they put more thought into their plan because of it.
The phenomenon is leading some to consider incorporating a financial plan in the case they were to divorce in the future. Thirty-five percent of respondents to Allianz’s survey worry over not having a plan if they got divorced, with 47% of Millennials especially fearful.
“No one wants to prepare for a divorce,” adds LaVigne. “But divorce later in life – especially after retiring – is increasingly common. If you have been planning for retirement as a couple, then splitting up your assets to fund separate retirements can leave you short of achieving your retirement goals.”
Allianz Center for the Future of Retirement surveyed 1,000 respondents ages 25 and over with annual household incomes of $50,000 for a single household and $75,000 for a married or partnered household or investable assets of $150,000 or over.
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