A marital breakup in Massachusetts can be emotionally and financially difficult at any age. However, those above 50 face an extra challenge, in that they do not have many years to bounce back from divorce financially before they reach retirement age. A couple of tips may help these individuals to prepare effectively for retirement in the years ahead.
First, a recently divorced person may benefit from working a little longer than planned before retiring. Even an extra year of work can make a big difference, providing more money for him or her to live on. This is especially important, considering that spending a couple of decades to four decades in retirement is not uncommon these days in the United States.
Those who are already retired may benefit from claiming part-time jobs to produce monthly income. They can also use their expertise to do consulting work. Of course, the income earned during retirement may affect an individual’s government benefits or taxes, so checking the rules on this is essential before returning to the workforce.
Although divorce in Massachusetts can understandably be difficult, two spouses may make it easier by agreeing to negotiate or mediate the divorce. Through these alternative processes to divorce litigation, they can work on an agreement regarding issues such as asset division. The goal is to reach an agreement that pleases both parties without further court intrusion. However, if they cannot find common ground, a judge will have to step in and make these important decisions for them. Unfortunately, the judge’s decision might not be what they would have preferred.
Source: ironmountaindailynews.com, “Seven ways to save for retirement if divorcing late“, Marc Mogan, March 26, 2018