Retirement at Risk: The Hidden Healthcare Burden of Gray Divorce

Many people who divorce later in life are already near—or fully in—retirement. The fears they carry tend to be quieter than those of younger couples, yet far heavier. A gray divorce often requires dividing pensions, 401(k)s, IRAs, and other retirement assets, which can sharply reduce each person’s long‑term financial security at a stage when there’s little time to rebuild.

In the near term, the shift from one household to two creates an immediate financial strain. Maintaining two separate homes is significantly more expensive, and careful expense tracking becomes essential. It helps each spouse understand what lifestyle is realistically sustainable after the divorce and highlights gaps that could otherwise lead to financial pressure. With fewer working years ahead, knowing exactly where money goes ensures that income sources—such as pensions, Social Security, and savings—can support long‑term needs.

As retirement approaches, health care becomes one of the largest and most unpredictable expenses. After a gray divorce, many people worry that:

• Healthcare, long‑term care, and inflation can hit harder later in life.
• They will lose access to a spouse’s employer‑sponsored insurance.
• They may not be able to afford private insurance or COBRA.
• Chronic conditions or age‑related health needs will strain a single income.
• Medical bills could erode retirement savings faster than expected.

This fear isn’t just financial—it’s deeply personal. It’s the fear of facing illness alone, of not having a partner to help navigate appointments, decisions, or emergencies.

• Tracking expenses helps each spouse understand what adjustments—downsizing, part‑time work, spending cuts—may be necessary.
• When everything else feels uncertain, knowing your true living expenses becomes an anchor.
• It’s not just about money—it’s about reclaiming stability, dignity, and the confidence to build a life that’s truly your own.

There are reasonable options for obtaining health insurance for someone approaching retirement and navigating life after divorce.

Health Care Options

Divorce is considered a qualifying life event, which opens several pathways to secure coverage. Below are the most common and reliable options, along with what each one offers. With any option, it is possible though unlikely, that you could negotiate for your ex-spouse to also contribute toward this cost as part of your divorce settlement.

COBRA (Temporary Extension of Your Ex‑Spouse’s Employer Plan)

If you were covered under your spouse’s employer plan, you may be eligible to continue that same coverage for up to 36 months through COBRA.
This can prevent gaps in care while you plan your next step.
It’s often more expensive because you pay the full premium yourself. 

ACA Marketplace Plans (Healthcare.gov)

Divorce triggers a Special Enrollment Period, allowing you to buy a plan outside the usual enrollment window.
Marketplace plans vary in cost and coverage, and subsidies may lower premiums depending on income.
Coverage can begin as soon as the first day of the next month.

Your Own Employer‑Sponsored Health Insurance

If you are still working, you can typically enroll in your employer’s plan after divorce.
Divorce qualifies you for mid‑year enrollment.
Often more affordable than COBRA.

Private Health Insurance (Off‑Marketplace)

You can purchase private plans directly from insurers.
Useful if you prefer specific networks or want coverage not offered on the marketplace.
Usually more expensive and without income‑based subsidies.

Medicare (If You’re 65 or Older)

Once you reach 65, you can enroll in Medicare regardless of marital status.
Divorce does not affect your eligibility.
You may qualify for premium‑free Part A based on your ex‑spouse’s work history if the marriage lasted at least 10 years.

Bridging the Gap Before Medicare (Ages 55–64)

If you retire early or lose coverage before age 65, you may need a “bridge” plan. Options include:

• COBRA
• ACA marketplace plans
• Private insurance
• A domestic partner’s employer plan (if applicable)

Key Takeaways

Divorce automatically ends shared health coverage once finalized.

You have multiple paths to stay insured, but costs and timelines vary.

Planning ahead helps avoid gaps in coverage and unexpected medical bills.