Sept. 1: BEST FROM THE BLOGOSPHERE

September 1, 2025

Bleak retirement savings picture for U.S. divorced, widowed women

South of the border, new research has found that one in four “divorced, separated or widowed women” have less than one month’s worth of retirement savings, reports Benefits Canada.

Less than one in 10 divorced, separated or widower men are in the same situation, the article continues, citing research from PensionBee.

“The survey, which polled more than 1,000 employees, found following a marital transition, women (43 per cent) are twice as likely as men (21 per cent) to report having a loose retirement plan and may lack clear retirement goals. Just nine per cent of divorced, widowed or separated women report working with a financial advisor on their retirement, compared to 18 per cent of men undergoing the same life transition,” Benefits Canada reports.

Nearly 23 per cent of “separated, divorced or widowed women” said they were unlikely to be able to survive more than a single month on their retirement savings, the article tells us.

This group, with scant savings, was also seen as less likely to increase their retirement contributions in the coming year, the article continues.

Twenty-three per cent of all “separated, divorced or widowed” respondents have made hardship withdrawals from their retirement savings accounts, the article adds. That compares to 17 per cent of married respondents, Benefits Canada notes.

And while 50 per cent of married people “reported a positive view of retirement,” that number falls to just “28 per cent for women and 31 per cent for men following divorce, separation, or the death of their partner.”

An article in Financial Advisor adds more detail about some of the retirement income problems faced by single, senior American women.

“While 26 per cent of all Americans are predicted to run out of money in retirement, the reality can be worse for single women who need long-term care. Those costs run as high as $248,000, and some 52 per cent of them will run out of money in retirement, according to Morningstar data,” the publication reports.

“With lower income earners, even without long-term-care costs, there’s a really large percentage who are running short of money and having to rely on charity or government programs. And then with higher earners who have more wealth saved, they can oftentimes self-insure,” states Morningstar’s Spencer Look in the article. “So it’s really the middle class, the middle two income quartiles, who are most exposed to this risk.”

Running out of savings can be a great concern for any of us.

Fortunately, here in Canada, government retirement benefits such as the Canada Pension Plan, Old Age Security and the Guaranteed Income Supplement are paid for life.

Members of the Saskatchewan Pension Plan have a retirement option that can help with “longevity risk,” or the danger of outliving your savings. SPP offers a variety of different annuities – you can convert some or all of your SPP savings into an annuity when you retire.

You’ll receive an SPP annuity payment on the first of every month for the rest of your life. Some of the annuities offer survivor benefit options, as well. For full details, see our Pension Guide.

SPP is open to any Canadian who has registered retirement savings plan room. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Benefits Canada, Financial Advisor

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