Getting divorced as you near the retirement phase of your life can disrupt the plans you have for the future. Preserving what you have requires immediate action and strategic planning.
Knowing some effective ways to boost your retirement can help you identify your next steps. Taking control of your financial situation may minimize the negative impact your divorce has on your future.
Start planning immediately
At the onset of your divorce, revisit your budget and determine where it requires modifications to suit your needs. According to Reuters, divorcees are 7 percent more likely to run out of money during retirement than their married counterparts. Similarly, your divorce could reduce your net worth by nearly 30 percent. These statistics show how crucial it is that you begin planning for the future right away.
At the very least, identify ways you can cut back on the amount of money you spend. Make sure that you live within your means and refrain from making large purchases while you adjust to your situation. One way to improve your financial situation is to reenter the workforce. Highlight the skills and experience you have and look for employment opportunities that can support your effort to rebuild your retirement.
Target your investments
As your divorce becomes a thing of the past, you may start looking for ways to optimize your savings. You can start conservatively, with a CD account for example, which allows you to build compound interest on the money you save. If you want to try other investments, you may want to work with a professional who can help you target your portfolio. Assessing your past and identifying the condition of your retirement savings can help you determine how to best use your money.
Your divorce does not have to be the reason you cannot enjoy retirement. Your proactive approach to rebuilding your retirement may give you a head start at a successful future.