Divorce is one of the most financially disruptive events a person can experience — particularly later in life. For many Australians, divorce occurs in their 40s, 50s, or early 60s, often at a time when retirement planning was already underway. This significant life change requires careful retirement planning advice to rebuild financial security and ensure a comfortable financial future.
After divorce, retirement plans frequently need to be rebuilt from the ground up. Superannuation balances may be split, property sold, income reduced, and future expectations reset. While this can feel overwhelming, retirement after divorce is still achievable — with the right strategy and access to personal financial advice from a qualified financial adviser. With a clear plan, you can achieve your financial goals and work towards a secure retirement.
This article explains the key financial issues that arise after divorce, how retirement planning changes, and the practical steps that can help restore clarity and confidence in your financial wellbeing. A financial plan should outline strategies to help you achieve your retirement goals.
Why Divorce Changes Retirement Planning So Significantly
Divorce affects retirement planning in ways that are both immediate and long-term. It often requires a complete reassessment of your financial situation and goals. Common impacts include:
Division of superannuation and other assets
Loss of a second income
Changes to housing arrangements
New tax and Centrelink considerations
Altered retirement timing and lifestyle expectations
Before you get financial advice, decide what you want to get out of it. Being clear about your goals will help you make informed choices and ensure the advice you receive is tailored to your needs.
For many people, divorce means moving from a joint retirement plan to a single-income future, often with less time to recover financially. The earlier these changes are addressed, the more options remain available to develop a tailored financial plan that suits your new circumstances. Deciding your goals before seeking advice is a crucial step in building a secure retirement.
Assessing Your Current Finances After Divorce
After a divorce, one of the most important first steps is to assess your current financial situation. This means taking a close look at your income, expenses, assets, and debts to get a clear picture of where you stand. Understanding your new financial reality is essential for making informed decisions about your financial future and setting realistic financial goals.
A financial adviser can provide personal financial advice tailored to your unique circumstances, helping you navigate the complexities that often follow a divorce. By working together, you can develop a comprehensive financial plan that considers your objectives, risk tolerance, and long-term aspirations. This plan will help you track your progress, make adjustments as needed, and ensure you’re on the right path to achieving financial wellbeing and security.
Taking the time to assess your finances now will give you the clarity and confidence needed to move forward. With the right advice and a tailored plan, you can rebuild your financial future and work towards achieving your personal financial goals.
Superannuation Splitting After Divorce
Superannuation is treated as property under Australian family law and is commonly split as part of a divorce settlement. Understanding how super splitting works and its implications is crucial for effective retirement planning advice.
When dealing with superannuation as a financial product, it is important to read and consider the relevant Product Disclosure Statement to ensure you understand the specific details and suitability before making any decisions.
Superannuation financial advice can help you understand how to invest your super to suit your needs.
How Super Splitting Works for Your Super Account
Super can be split by court order or binding financial agreement.
The split does not convert super to cash; it remains within super accounts.
Each party retains their own super account after the split.
After super splitting, it is important to receive a Statement of Advice (SOA) from your financial adviser. A Statement of Advice (SOA) documents the financial advice provided and outlines the strategies recommended for retirement planning.
While the mechanics may be handled by lawyers, the strategic implications require comprehensive financial advice. Key considerations include:
Remaining balance after the split
Investment options and strategy going forward
Insurance held within super
Ability to rebuild contributions before retirement
Many people only discover after settlement that their super is no longer sufficient to support their original retirement plans — which is why early modelling and personalised advice are critical to managing your super account effectively.
Rethinking Retirement Timing After Divorce
Divorce often changes when retirement becomes realistic. You can expect to adjust your plans and priorities as your financial situation and goals shift after divorce. You may need to consider:
Working longer than originally planned
Phasing into retirement gradually
Supplementing income with part-time or consulting work
Adjusting lifestyle expectations
Estimating your retirement lifestyle can help determine your budget and expenses accurately.
Rather than guessing, retirement planning after divorce should involve clear income modelling that shows:
How long your money is likely to last
What income is sustainable
What changes would improve outcomes
This turns uncertainty into informed decision-making and helps you manage your financial future with confidence.
Housing Decisions and Their Impact on Retirement
Housing is often the most emotionally charged — and financially significant — decision after divorce. Common scenarios include:
Selling the family home and downsizing
Retaining the home but with higher financial pressure
Renting later in life
Purchasing a new property alone
Each option affects:
Cash flow
Superannuation strategy
Centrelink entitlements
Long-term flexibility
A decision that feels emotionally right may still need to be tested financially to ensure it supports long-term retirement security. Accessing the right financial advice can help evaluate these options based on your overall retirement plan. Some advisers offer a fee-for-service model, providing transparent service and fixed pricing when helping clients assess housing options. Retirement planning should also account for healthcare needs and aim for debt-free living upon retirement, as these factors are closely linked to your housing decisions.
Retirement Income Planning and Financial Goals as a Single Person
After divorce, retirement income planning shifts from shared to individual responsibility. Key questions include:
How much income do I need on my own?
What expenses reduce or remain the same?
How do I manage large one-off costs?
Single retirees are often more exposed to:
Longevity risk
Market volatility
Health and aged care costs
A conservative, well-structured income strategy becomes especially important. Comprehensive financial advice can help you develop a sustainable income plan tailored to your personal financial situation. The complexity of your financial situation can affect both the type of advice you receive and the fees charged, as more intricate circumstances typically require more detailed planning. It’s also important to note that many retirees underestimate their expenses in the early years of retirement, especially in the first three years, which can impact the effectiveness of your income strategy.
Centrelink and Government Benefits After Divorce
Divorce can significantly change eligibility for government benefits. Eligibility for these benefits is subject to specific rules and thresholds set by the government. Changes may include:
Eligibility for the Commonwealth Seniors Health Card
Different treatment of assets and income
In Australia, the preservation age to access superannuation is generally 60, while the Age Pension age is 67.
Importantly, Centrelink outcomes can change over time, particularly if:
Assets reduce
Super is drawn down
Employment income ceases
Strategic planning with a financial adviser can help ensure entitlements are maximised and not missed.
Understanding Financial Advice Options
When it comes to rebuilding your finances after divorce, understanding your financial advice options is key. You can choose between general advice, which provides information about financial products and services, and personal financial advice, which is tailored to your individual needs and financial situation.
A financial adviser who holds an Australian Financial Services Licence can offer comprehensive financial advice that takes into account your specific circumstances and goals. This type of advice goes beyond general information, helping you develop a financial plan that addresses your super account, investment options, and strategies for making extra contributions. Your adviser will discuss your options with you, ensuring you’re making informed decisions that support your financial future.
Whether you need help with your super, want to explore new investment opportunities, or are considering making extra contributions to boost your retirement savings, accessing the right advice can make all the difference. Personalised advice ensures your financial plan is tailored to your needs, giving you the confidence to move forward.
Finding the Right Expert for Your Situation
Choosing the right financial adviser is a crucial step in securing your financial future after divorce. Start by searching for licensed advisers through trusted sources, such as the Australian Securities and Investments Commission (ASIC) website. This ensures your adviser is properly qualified and authorised to provide advice.
When evaluating potential advisers, consider their experience, qualifications, and the range of services they offer. Take the time to review their Financial Services Guide (FSG), which outlines their fees, services, and any potential conflicts of interest. A reputable adviser will be transparent about costs and will focus on understanding your financial situation, goals, and objectives.
The right adviser will provide personalised advice and support, helping you make informed decisions about your investments and financial plan. By working with someone who understands your needs, you can confidently work towards achieving your financial goals and securing your financial wellbeing.
Managing Costs During the Transition
Managing costs effectively during the transition after divorce is essential for maintaining your financial stability. A financial adviser can help you develop a comprehensive financial plan that includes strategies for managing expenses, reducing debt, and optimising your income. They can also guide you through investment options, super funds, and insurance, ensuring you’re making the most of your available resources.
Understanding the fees associated with financial advice and any additional costs related to investment products or insurance premiums is important. Your adviser should be upfront about all costs, helping you make informed decisions that minimise extra expenses and protect your financial future.
By working closely with a financial adviser, you can develop strategies to manage costs, maximise your resources, and ensure your financial plan supports your long-term goals. This proactive approach will help you navigate the transition with confidence and clarity.
Updating Estate Planning After Divorce
One of the most commonly overlooked steps after divorce is updating estate planning. After an initial consultation, it is important to prepare updated legal documents to reflect your new circumstances. This includes:
Superannuation beneficiary nominations
Wills
Powers of attorney
Reversionary pension nominations
To prepare for retirement, review and update wills, power of attorney, and beneficiary designations annually.
Failure to update these can result in assets passing in unintended ways — even many years later. Financial and legal advice should work together to ensure consistency and alignment with your current wishes.
Emotional Risk and Financial Decision-Making
Divorce is not just a financial event — it is an emotional one. During this period, people are more likely to:
Make rushed decisions
Take excessive investment risk
Avoid decisions altogether
Structured retirement planning provides:
A rational framework
Clear milestones
Reduced stress and uncertainty
This is particularly valuable during periods of personal change, helping you stay focused on your financial goals and wellbeing. Financial advice should be tailored to your interests and personal situation, ensuring your unique needs and aspirations are addressed. A good financial adviser works with you to understand your needs.
Review and Adjustment: Keeping Your Plan on Track
Regularly reviewing and adjusting your financial plan is vital to staying on track towards your financial goals. Life after divorce can bring unexpected changes, so it’s important to work with your financial adviser to monitor your progress and make updates as needed.
Your adviser will help you review your investment options, super account, and insurance coverage to ensure they continue to align with your objectives and risk tolerance. They’ll also discuss any changes in your financial situation, helping you access advice and manage costs effectively.
By keeping your plan up to date, you can make informed decisions that support your financial wellbeing and long-term security. Ongoing review and adjustment ensure you’re always moving towards your goals, making the most of your financial resources, and maintaining confidence in your financial future.
How Money Path Can Help with Personal Financial Advice
Money Path works with individuals navigating major life transitions, including divorce, to help rebuild financial confidence and retirement clarity. We provide comprehensive advice and personal advice tailored to each client’s unique circumstances, ensuring you receive support that fits your needs. Our process involves conducting research to gather information and analyze your situation, so we can develop a financial plan that aligns with your goals. Comprehensive financial advice can help you develop a tailored plan for your retirement. Our approach includes:
Reviewing post-settlement financial position
Modelling realistic retirement income scenarios
Rebuilding superannuation strategies
Coordinating tax, Centrelink, and investment decisions
Working alongside lawyers and accountants where needed
Our focus is on practical, personalised advice — not generic assumptions. Many clients discover that while retirement looks different after divorce, it is still achievable with the right financial plan.
Frequently Asked Questions – Retirement Planning After Divorce
Can I still retire comfortably after divorce?
Yes, in many cases. Retirement may look different, but structured planning often reveals more options than expected.
Should I change my super investment strategy after divorce?
Often yes. Changes in balance, risk tolerance, and time horizon usually require a review.
Do I need to work longer after divorce?
Not always, but this depends on your post-settlement position and income needs.
When should I seek retirement advice after divorce?
As early as possible — ideally during or immediately after settlement, before long-term decisions are locked in.
Is retirement planning after divorce different for women?
Often yes, particularly where career breaks, lower super balances, or longer life expectancy apply. Tailored advice is essential.
How does simple advice help answer my questions?
Simple advice is designed to help answer commonly asked questions about your super and financial matters. This type of advice provides clear, direct responses to help you understand your options and make informed decisions.
What should I expect in my first meeting with a financial adviser?
Your first meeting with a professional qualified financial adviser is complimentary. This meeting focuses on understanding your personal financial circumstances and retirement goals. No personalised advice is given at this stage, and you can use this opportunity to compare different advisers and ask about their services.
How much does financial advice cost and how do I pay?
The cost of financial advice can vary depending on the nature and complexity of the advice you need. Fees for a financial plan can start from $660 (including GST), while an initial appointment for comprehensive advice can cost $185. The cost of personal comprehensive advice can range from $2,200 to $6,600 (including GST).
Is personal financial advice in my best interests?
Yes, personal financial advice is tailored to your financial situation and goals, and is always provided in your best interests to help you achieve your retirement objectives.
What role does investing play in retirement planning?
Investing is a key aspect of retirement planning. Guidance on investing helps you allocate funds within your super or retirement savings to achieve your long-term financial goals.
What is a Statement of Advice (SOA) fee?
A one-off fee for preparing a personalised Statement of Advice (SOA) will be agreed on in writing before proceeding with personal financial advice.
What is robo-advice?
Robo-advice is automated financial advice generated using algorithms and digital technology, providing guidance based on your inputs.
What does comprehensive advice include?
Comprehensive advice includes a detailed financial plan tailored to your specific needs and goals, covering all aspects of your retirement planning.
Can I choose between general and personal financial advice?
Yes, you can choose to get either general or personal financial advice from an adviser, depending on what you need. General financial advice doesn’t take into account your personal situation or goals, while personal advice is tailored to you.
Should I read the Financial Services Guide before making decisions?
Yes, you should read the Financial Services Guide issued by a financial adviser before making any decisions about financial products or services.
What should I ask when I meet an adviser?
When you meet an adviser, ask them about their services and how they can help you achieve your goals. This helps ensure you understand the support available and how it aligns with your needs.
Final Thoughts
Divorce can feel like it has derailed your retirement plans — but it doesn’t have to end them. With clear analysis, realistic income planning, and professional guidance, retirement after divorce can still be secure, meaningful, and achievable. The key is moving from uncertainty to structure — and rebuilding with intention.
If you are navigating retirement planning after divorce and want to discuss your financial situation, talk to a qualified financial adviser who holds an Australian financial services licence. They can provide the right financial advice tailored to your needs, help you develop a comprehensive financial plan, and support your journey towards a confident retirement.
