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Rescuing your retirement after divorce

On Behalf of | Jun 7, 2022 | blog, divorce | 0 comments

Retirement planning takes time and your strategy could feel the impact of divorce. Acknowledging that your plan will definitely look different than before your split can help you prepare for what comes next.

Carefully protecting the remaining parts of your plan will enable you to optimize the leftovers. You can also embrace the opportunity to reassess your goals and recreate a future you feel excited about.

Start saving

You might lack the resources to contribute to your retirement during the first few months or even years following your split. Your focus could be on paying bills, staying out of debt and adjusting to financial independence. Even though you have limited resources, you can get creative with finding ways to save. For example, you may choose to eat at home more often or swap your morning coffee run for one made at home. You could reduce the subscriptions you have or you might even consider getting a part-time job to boost your savings.

The sooner you can begin saving again, the higher your chances of rebuilding your retirement savings. Your initial contributions might seem small, but with consistent effort, you will notice a difference. According to Entrepreneur, calculating your new retirement savings can give you a better picture of your goals for the future.

Diversify investments

It is not uncommon to hear that divorce leaves people penniless. However, your proactive approach to saving can help you avoid becoming part of that statistic. As you get back on your feet and acclimate to a single income, you might notice the amount of money you have to save will increase. A great way to optimize your financial resources is to diversify your investments. Consider options that will allow you to build compound interest.

With your money working for you, steady progress toward your retirement goals will start to happen. Despite your split, you still have the potential to recuperate your losses and live the life you want.