Americans Financially Unprepared for Divorce, Widowhood
December 14 2017 - 8:30AM
Business Wire
TD Ameritrade survey reveals few divorced
Americans expect to be secure in retirement while widows/widowers
will rely on Social Security
According to TD Ameritrade’s latest survey, a large number of
married Americans overlook the possibility of divorce or losing a
spouse in their financial planning. The unfortunate reality is
that approximately four in 10 marriages eventually end in divorce
and about a quarter of Americans age 65 and older are widowed.
TD Ameritrade's Financial Challenges of Divorce and Widowhood
survey of 2,000 adults ages 37 and older gives insight into the
financial lives of the 25 million divorced and 14.5 million
widows/widowers in the U.S.
Married people aren’t planning for these
possibilities
- Two-thirds of married individuals don’t
have a financial plan in place in the event of a divorce or
becoming widowed.
- Despite the lack of planning, seven in
10 men (72 percent) and six in 10 women (62 percent) are confident
in their abilities to manage their own financial situation in the
event of a divorce or a spouse passing away.
- Married individuals report an annual
personal income of $61,700 – that’s $13,100 more than
widows/widowers and $9,800 more than those who are divorced.
“Advance planning could provide a much needed boost in financial
security for those who unexpectedly end up alone at any phase of
their lives,” said David Lynch, managing director and head of
branches for TD Ameritrade. “Considering divorce or the loss of a
spouse is a smart addition to any long-term financial plan. It’s no
different than planning for things like a major illness, disability
or potential long-term care needs.”
Divorce a harsh, long-term financial reality for
manyCompared to the 43 percent of married Americans who
currently feel financially secure, just a quarter of divorced
people say the same. In an average month, nearly half (47 percent)
of divorced individuals are not saving or investing any of their
take-home pay, versus 32 percent for their married peers.
- Two in five (41 percent)
divorcées/divorcés expect to fully retire (versus 47 percent
married).
- Just three in 10 divorced Americans
expect to be very financially secure in retirement (versus 52
percent married).
- About half of divorced individuals (49
percent) are worried about running out of money in retirement
(versus 38 percent married).
Losing a spouse may be less financially damaging than
divorceNearly four in 10 widows (39 percent) feel financially
secure currently and slightly more (42 percent) expect to be very
financially secure in retirement, both sharp increases compared to
their divorced counterparts.
- However, in an average month,
two-thirds (67 percent) of widows/widowers are not saving or
investing any of their take-home pay.
- Widowed Americans, on average, expect
that 46 percent of their retirement income will come from Social
Security while their married peers expect only 29 percent of their
retirement income would come from Social Security.
“On average, women may outlive their husbands by five years or
more. And though the average age for becoming widowed is 59, it can
happen at any time in your married life,” Lynch said. “Married
people of all ages should take steps now to ensure they are
involved in both big and small family financial matters. They
should understand their household assets and liabilities, and
ideally, consider establishing multiple income streams that would
help them better control their financial futures.”
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Please visit TD Ameritrade’s newsroom or www.amtd.com for
more information, or read our stories at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
Survey conducted by Head Solutions GroupHead
Solutions Group (U.S.) Inc., is a leading market research partner
for Financial Services companies in North America. With
offices in New York, Toronto and Montreal, Head
delivers the deep customer insights that increase institutional
knowledge and propel business action. TD
Ameritrade and Head Solutions Group are separate and
unaffiliated firms and are not responsible for each other’s
services or policies.
About the Financial Challenges of Divorce & Widowhood
SurveyA 20-minute online survey was conducted with 2,019
American adults aged 37 and older by Head Solutions
Group, between August 11 and August 14, 2017, on behalf
of TD Ameritrade Holding Corporation. Survey participants
included 1,011 married individuals; 496 single, never married; 308
divorced (margin of error +/- 5.6 percent); and 204 widowed (margin
of error +/- 6.9 percent).The statistical margin of error
for the total sample of N=2,019 within the target group is +/- 2.19
percent. This means that in 19 out of 20 cases, survey results will
differ by no more than 2.19 percentage points in either direction
from what would have been obtained by the opinions of all target
group members in the United States. Sample was drawn from
major regions in proportion to the U.S. Census.
Source: TD Ameritrade Holding Corporation
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version on businesswire.com: http://www.businesswire.com/news/home/20171214005187/en/
TD Ameritrade Holding CorporationFor Media:Becky Niiya,
402-574-6652Sr. Manager, Corporate
Communicationsrebecca.niiya@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Director, Investor
Relationsjeffrey.goeser@tdameritrade.com
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