‘Gray divorce’ trend threatens retirement security, Allianz Life study finds

MINNEAPOLIS – July 22, 2025  –  The majority of married Americans say a divorce would derail their retirement strategy, according to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement, part Allianz Life.

Even as the national rate of divorce declines slightly, the divorce rate among adults aged 65 and older, often called ‘gray divorce,’ is increasing. Divorcing near or after retirement presents unique challenges, especially if a couple created a retirement strategy together.

This risk is important to consider as 56% of married Americans say that a divorce would derail their financial retirement strategy. About one in three married boomers (35%) say a divorce would derail their financial retirement strategy, compared to 63% of millennials and 52% of Gen Xers.

Married Hispanic respondents (67%) were more likely than white (56%), Asian/Asian American (49%), and Black/African American (47%) respondents to say that a future divorce would derail their financial retirement strategy.

“No one wants to prepare for a divorce,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “But divorce later in life – especially after retiring – is increasingly common. If you have been planning for retirement as a couple, then splitting up your assets to fund separate retirements can leave you short of achieving your retirement goals.”

Divorce causes more financial stress

Two in five (40%) Americans who have gone through divorce say it derailed their financial retirement strategy and 34% say getting a divorce set their retirement plans back. Still, 44% of divorced Americans say they have put more through into their retirement plan because of their divorce.

“It may sound cold hearted, but it’s important to consider how a divorce would affect your financial future,” LaVigne says. “Those going through ‘gray divorce’ don’t have the time to rebuild retirement savings on their own. Trying to fund two separate lives, instead of a joint one, can deplete retirement accounts faster than anticipated. They may need to delay their retirement to accumulate more savings and consider additional risk management strategies to ensure their funds can last their lifetime.”

One in three (35%) married Americans worry about not having a financial plan if they get divorced in the future. Younger Americans are more likely to have this concern with 47% of millennials saying they worry about not having a financial plan for a potential future divorce, compared to 37% of Gen Xers and 15% of boomers.

This worry is not trivial. The majority of divorced Americans (54%) say that they have substantially more financial responsibilities after their divorce. With that, 41% say they feel more stressed about their finances since their divorce.