Retirement and divorce do not mix. Divorce divides marital assets in half (in theory at least), whereas living costs fall by just 30 per cent or so. Combining all ages, Canada’s annual divorce rate has fallen to 7.5 divorces per 1,000 married persons in 2019 from 12.9 in 1994. Unfortunately, this is mainly owing to the aging of the population rather than rising marital harmony. Based on the 2019 rates, the probability of a 35-year-old divorcing within the next 40 years is 24 per cent.
(Source: Statistics Canada Table 39-10-0053-01)
Frederick Vettese is former chief actuary of Morneau Shepell and author of Retirement Income for Life.