The fiscal future of both parties in a marital dissolution can be influenced by this change in life, as many people already know. However, long-term planning for the implications of divorce can sometimes be overlooked by Connecticut residents in the midst of the process, considering how emotional such a process can be. It is important to consider these issues associated with retirement planning, particularly if the parties are in the process of a so-called grey divorce where retirement might be just around the corner.
While these concerns are particularly prevalent among divorced women, who according to a recent survey have an average of $34,000 less in retirement savings than their male counterparts, the question is relevant to both parties. One of the predominant questions that requires answering pertains to how big a “nest egg” will be required for retirement on a single income, especially considering people are living longer lives. Determining the retirement expenses an individual will require can be very different than determining the needs of a couple.
Social Security benefits are also a primary concern. In some cases, an individual may be entitled to claim benefits on a former spouse’s work record should particular prerequisites be met. Doing the research ahead of time can afford both parties upwards of thousands of dollars extra to put toward retirement.
Divorce is definitely a life-changing process, but it does not have to represent a dead end. Connecticut residents facing divorce are also facing a new lease on life as single individuals. Being prepared for the process and what comes after, and seeking out professional support to facilitate that preparedness, can make all the difference in the world.
Source: The Huffington Post, “Preparing for Retirement After a Divorce”, April 17, 2015