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What are tips for retirement planning in gray divorce?

| Jan 13, 2021 | Divorce & Legal Separation |

Divorcing in your older years can greatly impact your retirement since you will likely have to split your retirement accounts with your spouse in the upcoming settlement. This does not mean your dreams of a secure retirement have to die, however.

Losing some of your retirement money might make it hard to save the exact amount you had planned to retire on. Still, you can probably put away enough money so that you do not have to worry about your retirement years. The Motley Fool describes a few recommendations to help you.

Make a savings plan

Even if you do not have many prime earning years left, you can still use them to rebuild your savings. With a savings plan, you can set an amount for retirement and create percentages or amounts that you will put away towards it. Be aware that you may have to wait until you have handled your immediate post-divorce expenses before starting on your retirement savings.

Check eligibility for Social Security benefits

Divorcing your spouse does not mean you lose out on all financial marital benefits. In fact, Social Security still permits you to receive certain marital benefits as long as your spouse earned more money than you. If your marriage lasted for no less than ten years and you have yet to remarry, you should still have access to spousal or survivor benefits.

Consider what assets you need

When forecasting your future, think about how long you will remain in good health. You might have received a diagnosis of a persistent health problem or a degenerative disease. If so, you may place a higher priority on certain assets than others in order to maintain your lifestyle even as your health declines.

For example, you may want money for medical bills and are willing to negotiate more property to your spouse if it means you will receive more cash in exchange. Conversely, you might want to keep the marital home so you know you have a secure residence as you get older. Think about your priorities so you may factor them into your negotiations.