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Caring for your retirement after divorce

On Behalf of | Aug 30, 2021 | Blog, Divorce |

Preparing for retirement requires careful planning and preparation. When a divorce interferes with your plans, you may feel like you are back at square one.

Rebuilding your retirement plan may take time, but starting right away can minimize the risks of your divorce jeopardizing your future.

Assess what remains

Given that you probably shared mutual retirement benefits with your ex, your settlement may only be half as much as you previously had. While you may face the temptation to withdraw your portion and use it for other expenses, such a misstep could incur costly penalties for early withdrawal. A better choice is to see what your options are for rolling everything over into a personal retirement account.

If you continue to maintain an employee-sponsored retirement plan, see what you can do about ramping up your contributions. Look closely at the retirement benefits that remain and identify what you can do to make up the difference. According to Yahoo! Finance, educating yourself on the state of your financial affairs can help you set goals that will help you achieve the future you want.

Streamline your goals

Your ability to rebuild your retirement may not look like much right after your divorce. However, as you create your own budget and redefine personal goals, you may find that your ability to contribute more to your future will grow. Streamlining your goals can help you make steady progress in your effort to reaccumulate your nest egg.

With the passage of time and your adjustment to independence, you may gain more resources to diversify the way you save your money. Looking at savings accounts that build compound interest, for example, can help you maximize your money. Keeping the perspective that divorce does not have to define your future can help you stay positive and hopeful as you rebuild your retirement.