Financial Strategies for Starting Over: A Guide for Grey Divorcees
The phenomenon of “grey divorce” – couples splitting up in their 50s and beyond – has doubled since 1990. While ending a marriage later in life comes with its own emotional challenges, the financial implications can be particularly daunting. Here’s a comprehensive guide to help you navigate your financial future after a grey divorce.
Understanding Your New Financial Reality
The first step is taking inventory of your current financial situation. After decades of shared finances, untangling assets and adjusting to a single income requires careful planning. Start by:
- Creating a detailed list of all assets and debts
- Gathering documentation for retirement accounts, pensions, and Social Security benefits
- Reviewing your insurance policies and estate planning documents
Securing Your Retirement
Divorce later in life can significantly impact retirement plans. Consider these essential steps:
- Reassess your retirement timeline and goals
- Review and adjust investment strategies
- Understand your rights to your ex-spouse’s Social Security benefits
- Consider working longer to build up savings
- Explore catch-up contributions to retirement accounts if you’re over 50
Looking Forward
While starting over later in life presents unique challenges, it also offers opportunities for:
- Personal growth and independence
- New financial goals and priorities
- Lifestyle changes that better suit your needs
- Creating a secure future on your own terms
Resources
United States Resources
Canadian Resources
Citations
- Brown, S. L., & Lin, I. F. (2012). The Grey Divorce Revolution. Journals of Gerontology: Social Sciences, 67B(6), 749-758.
- Sweeney, M. M. (2010). Divorce and Retirement Wealth. Journal of Marriage and Family, 72(3), 532-545.