Web Content Viewer

Planning for Retirement: The Impact of Divorce

Key Takeaways

Divorce creates financial challenges for millions of Americans.
Provisions from the Tax Cuts and Jobs Act of 2017 will likely add to those challenges.
With careful planning, individuals can improve their chances of achieving financial security.

The divorce rate in American society remains at a high level, with 55% of all households heading towards retirement containing at least one person who was previously divorced.

Data from the Survey of Consumer Finances, which is used in calculating the NRRI, indicate that changes brought about by the Tax Cuts and Jobs Act of 2017, especially in terms of alimony, will likely make the financial challenges of those impacted by divorce even more daunting.

At particular risk is retirement preparedness. According to National Retirement Risk Index (NRRI) research conducted by the Center for Retirement Research (CRR) at Boston College, the impact of divorce on households is significant – those having at least one person who has been through a divorce increases their risk of not being able to maintain their standard of living in retirement by seven percentage points.

The good news is that with careful planning, many divorced couples may improve the chances of enjoying a financially secure retirement.

For greater detail on how divorce may impact retirement planning and taxation,

Read the full report on Planning for Retirement: The Impact of Divorce Opens in new window
Read the CRR Issue Brief, How Does Divorce Affect Retirement Security? Opens in new window

You may also be interested in other National Retirement Risk Index topics.

The National Retirement Risk Index (NRRI), published by the Center for Retirement Research (CRR) at Boston College, measures the percentage of working-age households at risk of being unable to maintain their pre-retirement standard of living during retirement.

Prudential is the exclusive sponsor of the National Retirement Risk Index.

The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

The Prudential Insurance Company of America and its affiliates Newark, NJ.

1001663-00002-00

Web Content Viewer

Actions

Web Content Viewer

Actions

Assurance IQ, LLC a wholly-owned subsidiary of Prudential Financial, Inc. matches buyers with products such as life and health insurance and auto insurance, enabling them to make purchases online or through an agent. Neither Prudential Financial, Inc. nor Assurance IQ offers, underwrites, or administers health plans or health insurance policies.

LINK by Prudential is an umbrella marketing name for Prudential Customer Solutions LLC (“PCS”), Prudential Annuities Distributors, Inc. and various subsidiaries of The Prudential Insurance Company of America. Investment advisory products and services of LINK by Prudential are made available through PCS, an SEC registered investment adviser. PCS is not a licensed insurance agency or broker. Prudential LINK and LINK by Prudential occasionally may be referred to as LINK.

Securities products and services are offered through: Pruco Securities, LLC and Prudential Investment Management Services, LLC, both members SIPC Opens in new window and located in Newark, NJ, or Prudential Annuities Distributors, Inc., located in Shelton, CT. All are Prudential Financial Opens in new window Statement of Financial Condition PDF opens in new window for Prudential Investment Management Services, LLC.

Insurance and/or annuities are issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in NY and/or NJ), Pruco Life Insurance Company of New Jersey (in NY and/or NJ), and Prudential Annuities Life Assurance Corporation (PALAC). Each is a Prudential Financial company located in Newark, NJ (main office), except for PALAC which is located in Shelton, CT (main office), and each is solely responsible for its own financial condition and contractual obligations.

Variable annuities are distributed by Prudential Annuities Distributors, Inc., Shelton, CT.

Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, CT, or its affiliates.

This web page is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional. Prudential Financial, its affiliates, and their financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances.

This website is for U.S. persons Opens in new window and may not be approved in all states. Information contained on this site does not and is not intended to constitute an advertisement, solicitation or offer for sale in any jurisdiction, outside the United States of America, where such use would be prohibited or otherwise regulated.

"Prudential Advisors" is a brand name of The Prudential Insurance Company of America and its subsidiaries.

Prudential, the Prudential logo, the Rock Symbol and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom.

Pruco Life Insurance Company, an Arizona company - California COA # 3637. The Prudential Insurance Company of America - California COA # 1179. Prudential Retirement Insurance and Annuity Company - California COA # 08003. The Prudential Life Insurance Company of America Newark, NJ.

Securities and Insurance Products:

Not Insured by FDIC or any Federal Government Agency | May Lose Value | Not a Deposit of or Guaranteed by the Bank or any Bank Affiliate.

Template: 1000797-00002-00

Web Content Viewer

Planning for Retirement: The Impact of Divorce

Key Takeaways

Read More

Web Content Viewer

Trending

7 Strategies to Save and Pay for College

2019 Prudential-PLANSPONSOR Benefits survey

Web Content Viewer