I’m about to go into retirement and I’m afraid once I get divorced, my assets will be greatly impacted; including my pension. How best can I plan for a financially stable retirement?
– concerned ex
You’ll find more about this answer in our article ‘What Older Couples Should Know When Filing For a Gray Divorce’
Anyone who plans to divorce later in life should remember that such an event will impact their retirement plans. And in most cases, one retirement plan will have to take care of two separate households.
- If you want to lead a financially sound retirement, consider these tips:
- Cut down unnecessary expenses, travel, luxuries, etc. That way, you will have more savings.
- Keep your divorce costs as low as possible. Go for an uncontested divorce, mediation, or pro se divorce.
- Consider working for longer hours in the few years you’ll still be in the workforce
- If your children are adults, avoid giving them money anyhow
- Consider selling your house and replace it with a smaller one
- Include your retirement plan in the divorce settlement
- Work closely with a financial expert to help you plan for your future once you’re declared divorced.