Found yourself Suddenly Single?

Finding yourself suddenly single can be vey daunting, it brings with it emotional and financial stress, especially if your partner was the one that handled most of the financial aspects of your relationship.

After a relationship ends, we are often mourning not just the loss of a partner, but also the dreams and expectations we had for our futures.

Separation or divorce at any age can be financially devastating.  The cost of living is considerably higher when you’re single than when there are two of you who share expenses.  More concerning is a mid-to later-life split can shatter retirement plans. There’s less time to recoup losses, pay off debt, and weather stock market fluctuations.  Also, you may be approaching the end of your peak earning years, so there’s less of a chance of making up financial shortfalls with a steady salary.

These concerns are magnified for women. After a divorce, statistics household income for women drops.  In fact, according to the Bureau of Statistics 20% of women fall into poverty after a divorce.  What’s more, because women’s life expectancy at age 67 is just under 88 years (versus 85 years for men), a divorced woman can find herself living for longer with less.

A recent retirement survey of 1,063 people found:

• 23% of respondents think they won’t have enough money in super to ‘get by’ once they retire.
• 27% report that they don’t know how much super they have.
• 22% believe they will be ‘okay’ but will need to reduce spending and
• only 17% believe their super will be enough to live off.

So how do we respond to these types of headlines, compounded with the fear of managing our finances solo going forward.  Do we ignore them? Or could they be treated as useful triggers to implement plans so you can be better placed to live a secure and purposeful retirement?

In my experience, it’s the unknown that often causes us a great deal of stress and uncertainty. We’re uncertain about where to start and fear making the wrong financial decisions. This fear can sometimes lead to inaction, perpetuating the cycle of fear and stress, or even making the situation worse.

Rather than being discouraged, I think that this time can present a great opportunity to understand your options, as the saying goes education is power!

Building financial resilience can be a complicated process requiring an understanding of a range of issues that need to be balanced against one another and prioritised.

Regardless of your situation is, or what stage of life you are in, sound financial advice and strategic planning can set you on the path to financial independence and reducing the negative impacts of becoming ‘suddenly single’.

Christine is ideally placed to assist you in developing your own, personalised plan which will reduce the stress associated with an uncertain future and help create financial resilience.