There has been a significant increase in the number of couples over age 50 who have decided to end their marriages. The phenomenon is so prevalent in California and other parts of the country that it has been referred to as “gray divorce.” While going through a divorce can be fraught with issues at any age, older couples do need to exhibit caution and thoroughness as they navigate the subject of retirement finances.
Couples over the age of 50 typically have to consider how a divorce will affect their ability to save for the future. Rather than contributing to one retirement account, someone may have to fund an additional one following a divorce. If so, any extra money that can be diverted to retirement funds would be welcome. Financial advisors recommend several methods to increase the amount of savings.
Those over 50 in the workforce are allowed by the IRS to save an increased amount of money to an IRA or a retirement plan at a job. Delaying the time of retirement offers some workers an opportunity to continue making contributions to an employer plan. Another way to generate more money to set aside for retirement is to find an extra side job if already employed; consider a part-time position if someone is already retired.
There will be a greater amount available from Social Security if a person waits to start receiving benefits. There are numerous factors to consider when a divorce is involved, such as how long a marriage lasted and the ages of the former couples. This information can be accessed at socialsecurity.gov.
Getting a divorce at any age can be an overwhelming experience. To have someone help navigate the legal process, it would be wise to contact a California divorce attorney. An experienced attorney will help clients protect their interests, both current and future, throughout the process.
Source: shrewsbury.wickedlocal.com, “7 ways to save for retirement if you divorce later in life“, Alan F. Auteri, March 13, 2018