Divorce can be a complex and challenging experience at any stage in life, but for older adults going through what is known as gray divorce, the impact can be significantly more gut-wrenching. Gray divorce refers to the dissolution of marriages involving people aged 50 and above. The trend is gaining momentum in the United States with over a third of divorces being filed by people in this age category.

This phenomenon is occurring amidst a silver tsunami, a term used to portray the increasing number of older adults in America. The U.S Census Bureau projected that by 2034, the senior population will outweigh the number of children. This demographic shift affects various aspects, from financial planning, healthcare costs, caregiving obligations, labor force, and retirement strategies.

Deciding to divorce later in life carries an array of complications such as dividing decades of accumulated shared assets, managing mutual social connections, and more pressing medical needs. These divorces often result in financial loss from which individuals may have limited time to recover due to reduced working years, coupled with increased expenses such as healthcare and caregiving duties.

Women are especially affected by financial losses following gray divorce. Despite advancements in women’s overall wealth, the average wage gap between genders has remained the same for the last two decades. Women tend to earn less and live longer, implying they need to save more for retirement. However, women contribute less to their retirement accounts than men do, according to a 2024 survey by New York Life.

Given these trends, benefit advisors and financial professionals need to develop strategies that accommodate the rising rates of gray divorce. Employers, too, must respond to these demographic changes and offer more flexible and robust financial and well-being strategies. Such support converts into more effective workforce management, improved productivity, and engagement, maximizes benefit dollars, and ensures employee health.

Benefit advisers should offer support and advice to clients going through a gray divorce. They can promote available resources, financial advice, and well-being services, fostering a culture free of divorce-related stigma at workplaces. Also, they need to undertake educational initiatives regarding disability insurance, retirement savings, and long-term care planning.

All said, comprehensive financial planning is crucial for everyone regardless of their marital status. Financial professionals have the essential role of helping individuals understand their workplace benefits while offering additional solutions and coverage suitable for their circumstances. The right guidance allows people to navigate the complexities of divorce, ensuring financial security and retirement readiness.

If you need to get a hold of a representative during this challenging period, there are ways to get through to the Employment Development Department (EDD), Paid Family Leave (PFL), or State Disability Insurance (SDI). Checking the EDD, PFL, or SDI phone number and making a call during non-peak hours can be helpful. Websites like eddcaller.com provide essential information on how to contact a representative or get speedy responses from these departments. These resources can become crucial in your post-divorce recovery and financial management journey.