Getting divorced can have a significant impact on your retirement plan. Studies show that divorced men and women feel less financially prepared for retirement compared to married couples.
In fact, a new study by ING U.S. found that divorced women have roughly $34,000 less in their retirement savings than divorced men. This is a serious issue that divorced women should be aware of before they reach retirement so they can properly plan for their future.
What can divorced women do to plan for retirement? First of all, it is important to review your retirement assets before you finalize your divorce. If you are already divorced, it is still helpful to see how your retirement assets were split to help you plan for the future.
Understanding your retirement goals can help you in many ways. You should address several questions when reviewing your retirement assets, including:
- How many assets do you need for retirement?
- How will Social Security benefits impact your finances?
Several additional questions may need to be addressed depending on your specific situation. It is vital for all couples getting divorced to understand the financial implications on their current and future retirement goals. You may need to adjust your retirement plan as well as your monthly budget to help you achieve your goals later in life.
Planning for your retirement should be a key goal after your divorce. Working with an attorney can help you understand how your retirement assets will be divided, and the impact your divorce will have on retirement goals.
Source: Huffington Post, “Preparing for Retirement After a Divorce,” April 17, 2015