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Planning for retirement amid late-life divorce

Its no secret that the end of a marriage can have drastic effects on finances. Arizona citizens that divorce later in life may have questions about retirement and what will happen to the money they've been saving for the majority of their adult lives. The following tips can help late-life divorcees boost their savings for the retirement that is nearing on their horizon.

It is advisable for those that divorce later in life to think about working an extra year or two before retiring. Those that are already retired may want to consider re-entering the workforce in a part-time position to bolster savings. Every year working only equates to more money in savings. When long-term marriages end, spousal support may also be awarded. This can be extremely helpful to boost retirement savings.

Those struggling with the financial hardships associated with the end of a marriage may be tempted to withdraw early from a previously established individual retirement account. However, it is recommended to keep these accounts open and leave funds invested. Any premature withdrawal will result in heavy fees and tax penalties. It also recommended to explore options with Social Security benefits at this time and choose a claiming strategy that is best suited for future needs. Divorcees may be able to claim benefits based on a former spouse's income that earned higher incomes, but eligibility requirements can be tricky.

Planning a financial future can be difficult and confusing at any stage in life. However, when late-life divorce happens, the ensuing emotional and psychological turmoil can make it extremely difficult at a time when financial planning may be the most important. Those in Arizona that have questions regarding divorce at any stage in life could benefit by seeking the services of an attorney knowledgeable in all aspects of family law.

Source:, "7 ways to save for retirement if you divorce later in life", Alan F. Auteri, March 13, 2018

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