Saving for retirement is important for everyone. But it is particularly important for people who are in their 50s or 60s who are nearing retirement age – the same age group that has experienced a marked increase in divorce.
Much has been reported on “gray divorce” in America. Recent research indicates the divorce rate for people in their 50s has doubled in the past 20 years, while rates in the general population are much lower. Contributing factors to the trend range from longer lifespans to the reduced social stigma surrounding divorce in our culture.
A 2012 report from Bowling Green State University found that gray divorce can be financially devastating, especially for women who stopped working to raise children. However, anyone going through a gray divorce is going to take an economic hit when it comes to retirement accounts.
Retirement funds that couples once intended to share in their golden years are split in half during divorce proceedings. Each party in the divorce will thus have less money going into retirement while simultaneously inheriting new expenses that come with living separately. According to a recent article in USA Today, many people who fit the gray divorce demographic are delaying retirement to ensure a stronger financial future.
Financial planners estimate that it can cost anywhere from 30 to 50 percent more to retire as a single person. Older individuals may work longer than planned or reduce their lifestyles – both difficult decisions for people who have had a concrete plan for many years.
If you are going through a divorce in North Carolina, it may be prudent for you to contact a financial adviser as well as a North Carolina divorce and separation attorney. Together, you can build a team that will help you look at the big picture after divorce and make sure that you have a plan in place to support yourself once proceedings are completed.
