When it comes to grey divorce and retirement planning, there are several things you need to consider as you move into this new chapter of your life. Ella Hickman from Hickman Family Lawyers in Perth shares her insights into what you need to know about grey divorce and retirement planning.
Grey divorce is the term used for divorces of people generally over the age of 50 years. In most cases, divorce can be a most painful and distressful event for people of all age groups, but for the over 50s, it can come with an extra set of challenges.
Apart from the emotional aspects and the daunting task of drawing up divorce papers and planning how and where one would live, there could also be health issues or physical challenges that older divorcees may have to contend with. And then, of course, there are also considerable future financial implications that have a huge effect on most grey divorces.
Although much depends on the financial position of each couple, after assets and incomes are split in two, there is often bound to be a drop in living standards for both spouses. They may be close to or already in retirement, which means there is little or no time left for either of them to start earning all over again.
The financial implications vary with each case, but in many grey divorces, both spouses may have little choice but to learn to make do with a lot less.
Unless a couple going through a grey divorce has managed to build up a healthy nest egg during their married lives, their retirement planning can be affected in numerous ways.
All of these challenges make grey divorces a most daunting and emotionally-charged task, often requiring the assistance of a professional financial planner and experienced family lawyer to overcome.
Before you can begin to replan your retirement, you need to take financial stock of your situation as soon as possible. Below are a few tips on maximising your retirement planning and potentially making your life a little more financially comfortable.