Financial Planning After 50: Essential Tips for a Stable Future Post-Divorce
Navigating financial waters after divorce can be challenging at any age, but for those over 50, the stakes are particularly high. With retirement on the horizon and less time to recover from financial setbacks, smart planning becomes crucial. Here’s your comprehensive guide to securing your financial future after a midlife divorce.
Reassessing Your Financial Landscape
The first step is taking a clear-eyed look at your new financial reality. Start by creating a comprehensive list of your assets, income sources, and expenses. Remember, what once supported one household now needs to sustain two. This inventory becomes your foundation for future planning.
Retirement Planning: Your Top Priority
- Maximize catch-up contributions to your 401(k) and IRA accounts
- Understand your rights regarding your ex-spouse’s Social Security benefits
- Review and adjust your retirement timeline if necessary
- Consider working longer or picking up part-time work to boost savings
Insurance Considerations
- Health insurance: Research alternatives like COBRA or marketplace options
- Life insurance: Update beneficiaries and evaluate coverage needs
- Long-term care insurance: Consider protection while still healthy
Resources
United States Resources
Canadian Resources
Citations
- Employee Benefit Research Institute, Retirement Confidence Survey, 2022
- National Institute on Aging, Financial Planning Guidelines, 2021
- American Association of Retired Persons (AARP), Divorce Financial Strategy Report, 2022