Suncorp Insurance’s have recently produced a report Untying the Knot  which looks at the financial consequences of a divorce. The report highlights some interesting statistics, which may be of interest to your clients, including the fact that divorce can have a significant impact on financial security not just in the short-term but for years to come. The report shows that ideally, married and divorced individuals both hope to retire at the same age, but that the ‘hidden cost of divorce’ can add 10 years to the working lives of Australians – the crux of the report is that divorcees who did not consider superannuation whilst going through their divorce settlement could expect to retire 10 years later than their married contemporaries.

This is something that your clients may not realise and the contents of the report may be something which is worth pointing out to them. Taking super into account during their divorce could mean the difference between being able to retire when they would like to or having to work well into their 70s and beyond. A married individual will on average retire between the ages of 65-69, but astonishingly a divorcee can expect to have to continue in employment until they reach 75 years older. This is not a very appealing prospect for most hard working Australian’s who are in the main dreaming of the time that they can relax, spend time with grandchildren, pursue their hobbies or travel.

Potentially impacting heavily on both men and women, it’s clear from Suncorp’s research that superannuation is often an afterthought during divorce with other assets, like the family house and car considered to be a more important priority.

The report shows that currently only 17% of Australian divorcees consider super in their divorce. The end of a marriage will often cause considerable distress for those involved. There are often significant emotional and economic costs for your clients to take into account alongside consequences for children. When you are supporting your clients through separation and divorce it’s essential that they look to their long term future and make sure they consider their circumstances right up to their planned retirement age. The infographic below by the team at Suncorp summarise the findings of the report:

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