Navigating Gray Divorce: Strategies for PG&E Employees Facing Late-Life Separations

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For PG&E employees facing gray divorce, it helps to rethink retirement plans and asset division with a financial advisor so everyone knows where they stand to minimize emotional and financial strain during this life transition - said Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.

With gray divorce on the rise, PG&E employees should review their retirement plans and long-term financial goals to prepare for possible asset division changes and future financial stability - Tyson Mavar, of The Retirement Group, a division of Wealth Enhancement Group.

In this article we will discuss:

1. The rise of gray divorce and its prevalence among older adults.

2. Common triggers & unique challenges of late-life divorces.

3. Methods for managing financial, emotional and social impacts - particularly for PG&E employees.

Trends in Divorce & Late-Life Challenges.

The possibility of divorce is often unimaginable - especially for couples who have been together decades. New patterns indicate a shift in divorce demographics - more people over 50 are splitting. This so-called 'gray divorce' has grown. Couples this age account for about 36% of divorces now compared with 8.7% in 1990. For PG&E employees nearing or entering retirement, that process presents challenges younger couples might not face.

Understanding Gray Divorce: The Rise of Gray Divorce.

The term gray divorce describes a trend among older adults who separate after years of marriage. Studies like those by Susan L. Brown and data from the Pew Research Center show that divorce rates have remained steady or decreased among younger age groups, but they have doubled for older adults since the 1990s. Linked to this change are longer lives and larger social movements through the decades.

Common Causes of Late-Life Divorce.

Several reasons explain the increase in divorces among people over 50: Interests, values and priorities change over time - and sometimes break relationships.

Empty Nest Syndrome: Adjusting to life without children at home can upset family dynamics and reduce spouse contact.

Money Disputes: budgeting and retirement plans often become disputed at this point in time.

Health concerns: Chronic health concerns, which become more common with age, can add stress to a marriage when one partner becomes a caregiver. Societal changes have also promoted greater independence - particularly for women - in pursuit of happiness outside unhappy marriages.

Some Unique Challenges in Gray Divorce.

A later divorce can present its own challenges: Couples with decades of financial history may have complex asset divisions. Separations can change long-term planning for budgets, health insurance and living arrangements.

Psychosocial and emotional impacts: Separation can create loneliness and isolation - particularly for seniors - and raise health risks including cardiovascular disease and cognitive decline.

Financial and Emotional Considerations

The financial impact of gray divorce is often enormous. Study after study shows that women over 50 lose 45% more quality of life following a divorce than men do by 21%. That difference shows how structured financial planning and support is critical during this transition. (SOURCE: Study on the Financial Impact of Gray Divorce)

For PG&E Employees: Navigating Gray Divorce.

And for employees at PG&E companies going through late-life divorces, you need a team of professionals - lawyers, financial and mental health advisors. These experts understand gray divorce and can help you navigate financial and emotional waters.

With societal values shifting toward personal fulfillment, gray divorce will probably remain a major trend. Understanding its challenges and preparing proactively may allow individuals to move more smoothly into the next phase of their lives.

And including Social Security benefits in retirement planning is important. For example, someone married 10 years or more may be eligible for benefits based on the earnings record of their former spouse, the Social Security Administration said. This can be a large financial help to those 60 and older planning.

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Sources:

1. AARP. 'Study: Gray Divorce a Trend Among Boomers.'  AARP , 2023,  https://www.aarp.org/home-family/friends-family/info-2023/gray-divorce-trend.html .

2. Verywell Mind. '7 Reasons Behind the Gray Divorce Phenomenon.'  Verywell Mind , 2024,  https://www.verywellmind.com/gray-divorce-8646068 .

3. Social Security Administration. 'Ex-Spouse Benefits and How They Affect You.'  Social Security Matters , 2017,  https://blog.ssa.gov/ex-spouse-benefits-and-how-they-affect-you .

4. NerdWallet. 'Divorced-Spouse Social Security Benefits: How Much and How to Qualify.'  NerdWallet , 2023,  https://www.nerdwallet.com/article/investing/social-security/divorced-spouse-social-security-benefits .

5. Business Insider. 'A Major Curveball in Retirement Preparedness: Divorce.'  Business Insider , 2024,  https://www.businessinsider.com/divorced-boomers-lower-retirement-savings-401ks-social-security-income-2024-10 .