Americans are living longer, with major ramifications for estate planning.
Researchers at TD Ameritrade wondered whether Americans, whose average life expectancy is 78.6 years, were planning accordingly, especially in the event of being separated from a partner or widowed at an advanced age.
In a survey released Tuesday, they found that 87% of respondents 40 and older had confidence in their ability to manage their own financial situation if they divorced or their spouse died later in life.
At the same time, however, 45% of men in the survey and 36% of women said they did not have a financial plan in place in the event of divorce or becoming widowed.
In addition, 94% of the 40-plus sample said they did not have a prenuptial agreement in place, including 91% of those with $250,000 or more in investable assets.
“Planning your finances around the potential end of a relationship due to divorce or death can be uncomfortable at the very least,” Keith Denerstein, director of investment products and guidance at TD Ameritrade, said in a statement.
“While the trepidation is understandable, preparing for these possible scenarios is important for future financial security, and therefore should be a key part of financial planning.”
The Harris Poll conducted the online survey from Aug. 30 to Sept. 10 among 2,000 U.S. adults ages 40 to 79 with at least $25,000 in investable assets.
Legacy of Divorce
Many divorcees in the survey, men especially, said that divorce had affected their ability to retire.
Forty-six percent of male divorcees said that getting divorced had derailed their retirement plans, compared with 36% of their female counterparts.
Forty percent of divorcees reported that they had less than $50,000 saved for retirement, compared with 32% of Americans overall in the same age bracket.
One in three said they had delayed their divorce longer than they wanted because of financial concerns.