UK divorcees: once bitten, twice shy?
- ONS stats reveal divorces amongst opposite-sex couples have increased from 2015 to 2016
- The associated wealth transfer from men to women is having a bigger impact investment providers than intergenerational wealth transfer
- Boring Money research shows once divorced, women aged 55+ become more likely than the national average to always find time for their finances
This morning The Office of National Statistics (ONS) revealed UK divorces are on the up, with over 100,000 divorces of opposite-sex couples in 2016, an increase of 5.8% compared with 20151.
Boring Money findings show Brits aged 55 and over are among the fastest growing group of divorcers2. When it comes to negotiating the financial side of this however, women in their late 50s and 60s whilst being more confident than their younger counterparts are less confident managing their finances compared to men of the same age when out of wedlock.
With key decisions to make such from cash flow analysis to Pensions Sharing Orders, it’s a time when people need advice. Over a third (35%) of older women are more likely to turn to friends and family and 43% will use comparison websites for help.
One positive side effect of divorce is the need to take ownership of financial matters. Women who are divorced are:
- More likely to priorities managing their finances
- And always find time for their finances
Holly Mackay, CEO of Boring Money, comments, “Although much is made of intergenerational wealth transfer, we see a more immediate shift from men to women, driven largely by increasing divorce rates and women living for longer. Women aged between 55 and 70 are particularly vulnerable and are often confronted with difficult financial decisions they do not feel empowered to make.”
These trends are affecting how both male and female investors engage with the industry. Mackay observes, “Online investment platforms report the impact on customer behaviours, with increasing contact from women in this age bracket who are going it alone and are seeking help and advice’’.