Texas residents may be aware of the emotional damage that divorce can bring to a family. Issues may result from both spouses’ arguments about child support, property division and other divorce issues. However, the end of marriage may also affect another aspect of life, which is retirement.
Many people in Houston, Texas may have looked forward to retirement after many years of hard work. However, when divorce is involved in the situation, the outcome may be different than expected, especially for baby boomers who decide to divorce.
Accordingly, the rate of divorce among baby boomers, or couples of age 50 or older, doubled from 1990 to 2010. The experts say that these divorces may be due to several factors; however, one thing that is certain is that baby boomers’ divorces can influence their retirement. A professor from Bowling Green State University said that those spouses who dedicate their lives to supporting the household may experience such effects as well as other people being affected.
Spouses who divorce before retirement may face difficulties in funding their retirement plans. They may have to choose between living a different life after retirement and delaying their retirement for a few more years. Baby boomers who decide to divorce may need 30 to 50 percent more funds to be able to retire. However, such difficult times may be prevented through careful planning.
Spouses divorcing in their 50s may still have several years to replenish their savings and investments to fund their retirement. Having a financial adviser under such circumstances may help spouses with the settlement terms, which may benefit retirement. Baby boomers may also want to reduce their expenses. Changing his or her lifestyle after divorce may be difficult for a spouse yet learning to adapt for the sake of retirement may be for the best.
Divorce is never easy and may influence many aspects of life. Resolving the end of a marriage may take time, money and a lot of consideration. However, considering retirement and financial stability after divorce will be good for everyone involved.
Source: USA Today, “Boomer divorce: A costly retirement roadblock,” Rodney Brooks, Feb. 26, 2013