Divorce can have far-reaching impacts on multiple areas of life. While many people regularly think of alimony payments, child support and other effects caused by divorce, the prospect of retirement becoming more difficult may never cross their minds. Without proper planning, residents of New Jersey, Pennsylvania and other states who are dealing with divorce may find it harder to build up enough money to retire comfortably.
Numbers never lie
The National Institute for Retirement Security has conducted studies about the consequences of divorce on retirement accounts. According to the research, divorced men typically have nearly $30,000 less in their retirement accounts than their married counterparts while divorced women have roughly $16,000 less in their retirement than married women. Those numbers make it unsurprising that the elderly poor are more likely to be divorced than elderly married individuals.
How to divorce-proof retirement accounts
Retirement becomes harder for divorced individuals because they have access to less financial assets in general. It is also common for people to have to tap into their retirement funds to pay for the divorce itself.
Making smart investment choices, prioritizing retirement savings and understanding the process of spousal Social Security benefits can help in divorce proofing retirement funds. While these tips may not completely prevent retirement money from dwindling due to the dissolution of marriage, it can give an individual access to more of the money that he or she needs in retirement.
A divorce attorney may do much more than simply guide their client through the process of filing for and receiving a divorce. An attorney may also help their client in preparing for life after the divorce, including advising about ways to ensure that he or she can retire as comfortably as possible.