Heymann & Fletcher

Tips may help with retirement planning following divorce

The process of getting divorced in New Jersey deals not only an emotional blow but also a financial one. This is particularly the case for those who are planning to retire soon. However, it is not impossible to stay on track with one's retirement planning following divorce.

According to research from 2014, 11 percent of men who had gotten divorced and 18 percent of women who had gotten divorced and were over 65 years old were living in poverty. Women usually face more challenges with saving for their retirement following divorce. However, a couple of tips may help both men and women to effectively address their retirement plans after dissolving their marriages.

First, it is wise to rebalance a portfolio regularly, as one's ideal asset allocation and one's risk tolerance may change. In addition, one's goals might shift due to a divorce. It is also expedient to begin planning for medical care right away, taking into account that one very well may spend 30 years in retirement, which means huge medical expenses along with regular living expenses.

A divorcing individual's financial future long term is determined by how effectively he or she saves for retirement following the split-up. It also hinges on how personally favorable his or her divorce settlement is in New Jersey. Appropriate legal guidance may help people going through divorce to make informed decisions about pensions, IRAs and 401ks, for example. It is within their rights to fight for their fair share of assets and pursue settlements that ultimately are in their best interests financially.

Source: yahoo.com, "4 Tips for Retooling Your Retirement Plan After Divorce", Rebecca Lake, Nov. 8, 2016

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