As a married couple in New York, it is likely that you and your significant other have put money aside for your retirement. However, if you are getting a divorce, it is important to realize that these retirement savings may take a hit in the divorce. Preparing in advance for the likely loss of retirement funds can be beneficial as a newly single person.
According to the Center for Retirement Research, divorced or separated men and women older than 65 generally have less income to live on than married men and women. Experts say older divorced women in particular may have less money, as they sometimes take time away from their careers to care for their children or other family members.
Both divorced men and women can benefit from the following to ensure they have enough saved to support themselves for many years to come:
- Adjust your budget – As a newly divorced person, it is important to update your finances to reflect your current state. Canceling joint accounts, updating your beneficiaries and estate plans, and making sure you have the right insurance coverage are all steps you will need to take post-divorce. It may also be a good idea to cut your expenses as much as possible and adjust your budget to account for your loss in income.
- Invest – Making sure you have an investment account such as a 401(k) through work or an individual retirement plan. After a divorce, increasing the risk of your retirement portfolio may be a good option if you haven’t saved enough, while lowering your risk may help protect your assets.
Seek professional assistance
Certified financial planners, attorneys, and other professionals may be able to help when it comes to handling your finances during and after a divorce. Make sure to provide anyone you hire with an accurate picture of your finances so that they can properly advise you on what to do next.