Retirement options and later life lending are being complicated by the rising numbers of older people getting divorced, according to Key Equity Release.
The divorce rate among those aged 65+ has doubled since the early 1990s, with almost one in five (17%) of divorces in the past five years involving couples married for 25 years or more.
Key Equity Release warns that the growth in divorce rates among older borrowers increases the risk of major financial shocks and worries over retirement saving and planning for both partners.
Key says it is seeing increased enquiries from older homeowners for later life lending specifically linked to divorce and the need to help one or both partners fund a new property as well as to support retirement planning.
Will Hale, CEO of Key Equity Release said: “Divorce can be financially complex at any age but has particularly serious financial implications for older homeowners given the significant impact on retirement plans and general standards of living.
“Property wealth is often the biggest asset most couples divorcing in later life will have and will be a key part of financial conversations ahead of pensions and investments which are also very important.
“It is essential to seek financial advice to understand how divorce may affect income and living standards post-divorce but any advice should look at all aspects of divorcing couples’ assets including pension splitting and estate planning and inheritance.”
