6th August: Are you a senior undergoing grey divorce? Well, take a pause to think about your financial plans for retirement.
Now days, divorce is becoming a common thing not just among young couples but even among the elderly ones.
Hence, it is quite important for seniors to take a serious view for managing their finances in the best possible manner.
Financial planning tips for elderly divorcees—Figures cite a significant rise in the number of seniors going in for separation or divorce. And the estimates suggest an increasing trend in divorces among those in the age group of 60s, 70s or 80s in the next couple of years too, especially in Canada.
And an important issue is how to handle one’s finances in such a scenario and to keep them protected financially. Following are the steps suggested by financial experts to survive grey divorce successfully—
- Preparing for a change—This is one of the most significant steps for divorcing seniors to ensure financial protection. As per Debbie Hartzman, a financial planner of Financial Advisors Association of Canada, you will have to make some adjustment once you progress to a single-income household from a double-income household, especially if you are a senior. The reason being that such couples are in a state of living off an income that is fixed. And to make things even bad, there is no hope of increasing your income any sooner, she adds.
- Awareness about financial condition—It is good to have an awareness of your financial condition before hand if you want to ensure a better financial health for yourself. A common practice among elderly couples is that only one of the two spouses is entrusted with managing finances. However, things need to be reconsidered when the separation is indicated sooner. Both should start about beginning their financial planning.
- Avoid debt—plan for debt repayment—Senior divorcees must make suitable changes to their lifestyle to avoid landing in debt. Only then can they look forward to managing their money prudently, says Tina Di Vito from Retirement Institute at the Bank of Montreal.
- Preparation for post-divorce retirement –Managing to have a good standard of living in case of grey divorces can be difficult, if not impossible. So, the thing is to get prepared for retirement after divorce. That’s because your savings will be halved and both the spouses(individually) will have to cope up with extra medical and living costs.