Divorce, job loss, and other life crises leave families struggling

04.06.09
By Gerri Detweiler

Nearly 60% of Americans age 40 to 79 have experienced a life crisis such as job loss, divorce, death of a spouse, or a major illness or disability, according to the results of a new study by AARP Financial Inc. The study also found that women are more likely than men to report being significantly affected, both financially and emotionally, by these types of life events.

According to the survey of 1,200 adults, those in crisis often turn first to family and friends for advice. Those people may be “well-intentioned but not necessarily financially well-informed," warns Richard "Mac" Hisey, President of AARP Financial Inc., a taxable subsidiary of AARP.

It’s also not surprising to learn that emotions often run high in times of crisis. More than half of those surveyed said they found it was hard to keep their emotions in check, and 42% reported finding it at least somewhat difficult to stay focused. Many people report making poor decisions, or taking no action at all.

"Overwhelmed" was the most frequently cited emotion in instances of divorce (48%), death of a spouse (65%), serious illness/disability of self, a spouse, or life partner (75%), or serious illness/disability of a child (79%). Fear of the future was the most frequently cited emotion in cases of long-term job loss (66%), followed closely by "overwhelmed" (57%).

Women were significantly more likely than men (65% vs. 49%) to have experienced one of the life crises described in the survey, and they also reported a greater impact on their finances and emotional health. For example, only 32% of men said that long-term job loss had a significant impact on their emotional wellbeing, compared to 54% of the women surveyed.

AARP Financial has created Life Crisis Action Steps as an online resource for those experiencing a life crisis. Credit.com also provides free referrals to credit counselors and other service providers who can help consumers facing a credit crisis.

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Those in crisis often turn first to family and friends for advice.