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Gray Divorce is Not the Only Retirement Risk

by Mar 9, 2018

So, you’ve worked hard and tried to be more fiscally responsible than the US Government, and in the back of your mind, you were pretty confident that retirement would be a reality. But your marriage has started to feel a little shaky. Have you talked to anyone about the problems that can lurk in the shadows of retirements waiting to yank the cozy rug right out from under you? Are you sure? With some basic planning, between your savings and 401k plan, and maybe a little pension and Social Security, both you and your spouse can be able to relax and maybe even go on a little trip once in a while. Even if you do it separately. So, while these risks have unknown factors, you can still put together your defenses to be ready just in case.

Divorce

It does happen in retirement? It’s so common now that it has a name. Gray Divorce. I see a lot of women between 55 and 65 who haven’t worked in years but are now faced with divorce and the realization that 50% of the assets that were accumulated during the marriage will not begin to cover her spending needs. Be involved in your finances! Be sure you know what bank balances are and where all the accounts are. Knowledge is power. Then of course, do everything you can to keep the love alive! Divorce is no fun at any age. Cherish your mate.

Health Issues

Health is not guaranteed for any of us. Be sure your health insurance is adequate and will carry you through to age 65. Include in your retirement budget enough for a Medicare Supplement. Let’s face it, Medicare benefits in this country are only going to shrink and premiums rise for the foreseeable future. Be sure you have made a plan for funding the need for long-term care. If you’re not prepared, it can wipe you out.

Behavioral Finance

Your own mind can be your worst enemy. Human psychology makes most of us do exactly the wrong thing at exactly the wrong time with our investments. Use a trusted advisor and listen to them!

When planning for retirement, be sure you expect the unexpected! And if the unexpected does happen, be sure to arm yourself with the proper financial advisors to get you through whatever may come.

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