Married couples usually plan to enjoy their golden years together. When couples decide to divorce, the end of their marriage inevitably means a change to their retirement plans. Spouses frequently need to divide their retirement savings during property division negotiations. They also now face the nerve-wracking prospect of using their savings to cover retirement expenses at two different houses instead of at one shared residence. Some people continue unhappy marriages in part because they worry about what divorce might mean for their golden years.
Those who make some adjustments to their retirement plans can move on from an unhappy marriage without also giving up the opportunity to retire comfortably. For example, the following retirement planning adjustments can potentially help people as they prepare for divorce.
Changing living arrangements
Maintaining an independent household isn’t always a realistic option for a single person. There are several alternative solutions available for a divorced individual budgeting for retirement. They might consider living with family members and providing childcare or other support services to contribute to the household. They may also want to consider a roommate scenario in which they plan to retire and share a living space with a trusted friend. Finding a way to reduce housing costs in particular can take a lot of strain off of those preparing for retirement.
Working longer than anticipated
Given that divorce requires the division of retirement savings, some people choose to continue working a few extra years as a means of recouping those lost savings. Some people may be able to continue in their chosen careers beyond the standard retirement age. Others may take on part-time employment as a way of bridging the gap between their savings and their cost of living expenses in early retirement.
Ensuring proper access to marital resources
The decisions that someone makes during their divorce proceedings can have a major impact on their comfort during retirement. How they handle retirement savings and other property division matters can have a major impact on financial stability later in life.
Ensuring that someone receives their fair share of a pension and other retirement resources can be crucial for their stability after divorce. Individuals who stay focused on their long-term financial stability during divorce negotiations and while rebuilding after complex divorce proceedings may enjoy a more comfortable future than those who let their emotions dictate their behavior. Planning carefully for divorce later in life can have a profound impact on those preparing for retirement.
