The consequences of divorce for financial living standards in later life

de Vaus, David, Gray, Matthew, Qu, Lixia and Stanton, David (2007) The consequences of divorce for financial living standards in later life Melbourne, Australia: Australian Institute of Family Studies.


Author de Vaus, David
Gray, Matthew
Qu, Lixia
Stanton, David
Title of report The consequences of divorce for financial living standards in later life
Editor Lan Wang
Publication date 2007-02
ISBN 9780642395467
Publisher Australian Institute of Family Studies.
Series Australian Institute of Family Studies Research Paper series; 38
Place of publication Melbourne, Australia
Start page 1
End page 27
Total pages 27
Language eng
Subjects 160899 Sociology not elsewhere classified
Abstract/Summary As the first generation that experienced high rates of divorce reaches retirement age, the number of older Australians who have experienced divorce at some point in their lives will increase dramatically in coming decades. There is very little empirical evidence in Australia on the financial consequences of divorce for older people. This report begins to fill this gap by providing some of the first estimates of the financial consequences of divorce for Australians aged 55 to 74 years. Using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, it was found that, on average, having been divorced had negative consequences for income in older age for both men and women. However, the negative financial impacts of divorce were substantially reduced by remarriage. For some measures of financial circumstances, those who had remarried following divorce were very similar to the married and never-divorced. Older divorced single Australians were much more likely to experience material hardships and to report having a lower level of prosperity than the married and never-divorced. The divorced and single were more reliant on the public pension than those who had not divorced. This will have important implications for the financing of retirement incomes in Australia in coming decades and the extent to which the taxpayer will have to bear the costs of providing for retirement incomes.
Keyword Divorce
Divorce and retirement
Financial consequences of divorce
Divorce and income in old age
Q-Index Code K2
Q-Index Status Provisional Code
Institutional Status Non-UQ
Additional Notes ISSN 1446-9863 (Print); 1446-9871 (Online)

Document type: Research Report
Collection: Faculty of Humanities and Social Sciences - Publications
 
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Created: Wed, 15 Sep 2010, 16:52:12 EST by Cheryl Byrnes on behalf of Faculty of Social & Behavioural Sciences