When couples divorce, one of the most talked about difficulties is the division of assets – separating everything owned as a couple. The way those assets are split up could have a great effect on retirement plans.
Many divorced Americans said that the dissolution of their marriage adversely affected their retirement plans, according to the 2025 Annual Retirement Study* from the Allianz Center for the Future of Retirement™, part of Allianz Life Insurance Company of North America (Allianz Life). Among divorced Americans, 40% said it derailed their financial retirement strategy, and 34% said their divorce set their retirement plans back.
Financial professionals can help their clients mitigate the effect of divorce on their retirement strategy by incorporating risk-management strategies. Clients can address risk by increasing the proportion of retirement income from guaranteed sources like an annuity, a pension, and Social Security. Americans who gave been divorced may be able to increase their Social Security payments by claiming spousal benefits.