University of Denver

Divorce Between Baby Boomers May Significantly Impact Retirement

IAALS Intern

The divorce rate among baby boomers has reached an all-time high of 25 percent, with many more newly single 50-somethings experiencing difficulties planning and saving for retirementUSA Today reports that it will cost "at least 50% more to retire for boomers who divorce," as there is much less time to make up any economic losses before retirement. Baby boomers may have to lower their retirement lifestyle expectations or delay retirement because money saved for a couple's retirement will be split in half after divorce with “the same pool of assets [required] to sustain two sets of retirement.” There may also be an issue dividing qualified retirement assets, such as a couple's 401(k) and/or IRAs, because the party receiving the assets must pay a tax and penalty for breaking into the assets before age 59.5.

Cindy Pham is a third year law student at the University of Denver Sturm College of Law and contributes to IAALS Online. Please direct inquiries about this post to