Divorcing retirees' financial freedom 'in jeopardy'
Divorcing retirees' financial freedom 'in jeopardy'
- Friday, 5 June 2009While many people might aim to reach retirement
debt free, a divorce late in life could be putting monetary security at risk for some.
Equity release practitioner Safe Home Income Plans (SHIP) explains that house prices have dropped by almost a quarter (22.5 per cent) in the current economic turbulence.
As a result, couples in their 60s who sell their home as part of divorce proceedings face a reduced income from the sale - putting their financial freedom in doubt.
Based on figures from previous years, SHIP estimates that this could account for 13,678 people during 2009.
The ability for women to remain
debt free could be particularly at risk, as SHIP claims their lifetime income drops by an average of £18,200 if they divorce as a pensioner.
SHIP previously pointed out the impact the "base rate collapse" has had on pensioners' financial freedom.
With the base rate at a historical low, couples have seen the income they receive via interest on their savings drop from £315 to £32 per month - a fall of almost 90 per cent.

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