Tips On How To Save for Retirement After Divorce
When you find yourself on the divorce road, you know in your gut that everything you hold dear will change. You will find yourself with a different financial portfolio, often shared with your ex.
Time and again our clients will share their concerns with our financial mediators about how the divorce will impact them financially in the long term, especially regarding their retirement needs. It is a very valid concern that can carry a great deal of stress for our clients.
As our financial neutral learns more about the couple’s financial portfolio and helps them openly gather the financial information needed, that neutral party will be able to create several different reports and disclosures that can help the couple find the best path forward. This path not only represents the present but the future too, including retirement.
Below are some tips that a divorcing couple can implement to help increase their individual retirement funds after the divorce agreement is finalized.
- Increase your retirement contribution
- Create a budget and stick to it
- Create more income streams – in today’s gig economy, the options are endless
- Leverage the “Catch-up” rule if you are over 50 to replace the funding you divided in your divorce agreement
- Delay your retirement if you are unable add to your retirement fund – while not optimal, it may be the only path forward
We will consult with both of you, your attorneys and other financial advisors to provide the information both of you need to understand how your financial landscape will be impacted in the future due to your divorce agreement.
Note: This information is general in nature and should not be construed as legal/financial/tax advice. You should work with your attorney, financial, or tax professional to determine what will work best for your situation.