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Divorce Derails Retirement Outlook for Many

“Although more women are taking the reins of their household finances, divorce and widowhood remain significant roadblocks to achieving true financial security,” according to a new study from Allianz Life.

By John Manganaro | May 16, 2017
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The latest update of Allianz Life Insurance Company of North America’s ongoing study, “Women, Money and Power,” suggests the majority of women who went through a divorce say the effect “created a personal financial crisis.”

In fact, it is a strong majority indicating as much: 64%. Nearly an equal amount (59%) noted that losing their spouse/significant other due to divorce was a real “wake-up call” for them from a financial standpoint.

“Although fewer widowed respondents (43%) said losing their spouse due to the spouse’s death created a financial crisis, a full 60% felt the loss of their spouse served as a financial wake-up call,” the study explains.

Interestingly, these responses came “despite the fact that the majority of women in the study (51%) claimed they are the chief financial officer of their household.” The findings are also somewhat surprising given that more than two-thirds of women said they currently feel financially secure, with that number rising to 73% for married women. Evidently married couples rely strongly on each other to feel financially secure.

“It’s clear that no matter how confident women feel about their current financial situation and ability to manage money, divorce and/or becoming a widow can create turmoil that has lasting effects,” observes Allianz Life Senior Director of Consumer Insights Deb Repya. “It’s important that women play an active role in every aspect of their family’s financial planning so they are better prepared for whatever challenges the future may bring.”

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