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National Retirement Risk Index

Planning for Retirement: The Impact of Divorce

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 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.

Read the full report on Planning for Retirement: The Impact of Divorce.

Read the CRR Issue Brief, How Does Divorce Affect Retirement Security?

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.

This 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.

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