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How can people 60+ recover financially after a divorce?

On Behalf of | Apr 3, 2024 | Divorce | 0 comments

Divorce can be financially tricky, especially for many people 60 and older.

For example, common issues include fewer working years and changes in retirement plans. Health care costs and concerns about spousal support (alimony) may also factor in. This is true whether you pay spousal support or get it.

Detailed budget

Create a comprehensive budget that outlines your income, expenses and financial goals. Be thorough in categorizing your spending to identify areas where you can cut back and allocate more resources toward savings and investments.

Employment opportunities

Part-time or full-time employment opportunities can supplement your income. Update your resume, network with professionals in your field and consider retraining or acquiring new skills.

Social Security benefits

Understand your Social Security benefits and explore strategies to maximize them. Delaying your benefits until full retirement age can result in higher monthly payments, providing you with a more substantial financial cushion during your retirement years.

Retirement savings

Evaluate your retirement savings accounts, such as 401(k)s and IRAs. Determine if adjustments are necessary to align with your post-divorce financial goals. Consult with a financial advisor to explore investment options and develop a diversified portfolio that suits your risk tolerance and long-term objectives.

Housing options

Explore alternative living arrangements that align with your budget and lifestyle preferences. Downsizing to a smaller home or exploring rental options can reduce housing expenses and free up resources for other financial priorities.

Health insurance

Ensure that you have adequate health insurance coverage, especially as you approach retirement age. Explore options such as COBRA coverage, Medicaid or Medicare for affordable health care benefits and to protect yourself from unexpected medical expenses.

Support network

Surround yourself with a supportive network of friends, family members and professionals who can offer emotional support and practical advice as you rebuild your life post-divorce. Joining support groups or seeking counseling can also provide valuable coping mechanisms.

By following these tips and seeking support from trusted advisors, you can take proactive steps toward financial independence and security.