Divorce at 62 Upended My Retirement Plans

It’s an unfortunate truth that getting divorced, no matter the age, can have a devastating impact on your finances. This is even more true as you get older, when it can completely upend your financial life, especially as two people enter periods of their lives without the potential for ongoing income. 

The good news is that getting divorced at 62 doesn’t have to completely upend your retirement plan, as there are ways to help counter any financial hits. Whether it’s downsizing, finding new hobbies, and making all new friends, it doesn’t have to all be one big dark cloud hanging over you. 

The Downsides of Divorce at 62

There are going to be plenty of downsides at 62 that are going to impact your retirement. First and most important is any division of assets, which is likely to result in a 50/50 split of 401(k) s, IRAs, pensions, and brokerage accounts accumulated during the marriage. 

The same applies to a home, as one party may be able to retain it, or it may be required to be sold, and any equity is split evenly between the parties. Ultimately, any savings, investments, and assets held in the names of both parties during a marriage are likely to be divided. 

There is no question that this is going to be a challenging scenario, and what’s known as a “gray divorce” is going to have not just financial impacts, but also social and emotional impacts. Assuming couples divorcing at 62 have been married for a while, decades or longer, it’s going to take some time and be an emotional rollercoaster to split their lives apart.

As it stands, the divorce rate for those over 60 is growing and is one of the fastest-growing among all of the different age groups. This makes proper planning super important, so if you know this is happening, you should be prepared to navigate the next steps of your life. 

What To Do After a Divorce

If you are this individual, who is 62 and has been divorced, it’s essential to understand the next steps in your life. First, and arguably most important, is to meet with a financial advisor who can help you create a plan with whatever assets you have available. This will help you understand what kind of lifestyle you can live, when to take out Social Security, and how to recover financially. 

Additionally, you must consider how to rebuild your life, as there is no question that retirement has impacted you more than just financially. This affects your overall housing status, as you may want to downsize and relocate to a lower-cost-of-living area. 

You also have to factor in how to meet new people, whether it’s for love or just to make more social connections, as you might have lost some touch with previous friends after a divorce. A good step might be to find people with similar hobbies or interests with whom you can make a connection. Utilize these people and family as a support system, as this is the group that’s going to help you with the non-financial aspects of divorce. 

How to Rebuild Financially

Whether you are 62 or 70 and undergoing a divorce, you might have to consider whether or not you can return to work in some capacity. Whether this involves part-time work, online work if you have the skills, or another opportunity like Uber, it may be a daunting proposition to re-enter the workforce, but it is a necessary one. 

You will have to make some sacrifices, no question about it, which ties back to the idea of downsizing and possibly moving to a lower-cost area. However, cutting your expenses is likely to be the best thing anyone can do to start rebuilding financially. 

This all circles back to meeting with a financial advisor, so you know not only your assets but also your debts and expenses. A great fiduciary financial advisor will spend all the time you need to make sure you are feeling comfortable about what you can spend.

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