Divorce as retirement approaches: The most difficult challenge?
The journey of separation and divorce is not easy at any age. Divorce is difficult and overwhelming at any stage but separation and divorce can definitely present obstacles that are more devastating to couples who are approaching retirement.
We seem to be seeing more and more clients who are proceeding down this path as their working years are supposed to end and as the golden ones are supposed to begin. One of the most devastating effects of separation and divorce at this stage of life is that couples in their late 50s and early 60s are usually no longer gathering assets; they are beginning to look towards retirement and hoping that these assets can fund their retirement lifestyle.
All of a sudden, the future that seemed filled with plans of travel and leisure may have to abruptly change. A couple’s comfortable lifestyle may not be affordable for each partner on their own. A pension that was going to support a couple nicely may have to be split in half. Many women who have never worked may have to try and find jobs which can be so much more difficult at this stage. Men who had been counting the days til retirement may have to keep working or find other jobs if mandatory retirement comes into play. Both parties may have to become much more adept at budgeting. The overwhelming challenges that separation and divorce presents can be much more daunting.
Prudent planning and professional support will be key to developing a plan that will still enable a clear and secure financial future.