When people get divorced, their immediate concerns are similar:
Where am I going to live?
How am I going to get by financially?
What will happen to my kids?
Am I going to start another relationship?
However, although the above issues are extremely important, they can cause one other issue to fall by the wayside—your retirement plans. During your property division, it is vital that money later doesn’t become less important than money now.
The Truth Is in the Numbers
An ING study conducted in the United States found that women especially have difficulty saving for retirement during and after a divorce. Women who are divorced have on average $34,000 less saved for divorce than their ex-husbands, while divorced men and women have $11,000 less saved for retirement than their married counterparts.
A recent study conducted by the Phoenix Group in the United Kingdom found that 19 percent of women stop putting money into their retirement accounts after a divorce altogether – and that another 25 percent reduced how much they were putting towards retirement. A shocking 38 percent of divorced women aren’t clear on their financial settlement after a divorce or their retirement savings.
Saving for Retirement Is Vital After a Divorce
How can you make sure to save for retirement, even with so many other changes happening in your post-divorce life? Financial experts suggest making a budget that includes savings—even if you cannot save as much as you did when you had a partner. Also, calculating how much you will need for your retirement will help you develop your strategies and goals. Finally, you should remember that you may need to save more for retirement since you may be solely responsible for paying for elder care, housing, and other needs as you age.