Georgia residents who are contemplating a divorce may want to think about planning early with respect to future retirement funding. Divorce can place an inordinate strain on a person’s regular income, which will not be bolstered by combining with the former spouse’s income after the divorce. This is often a strain for those who were on a relatively tight budget in the first place.
These concerns were verified as real by research recently published by a retirement research center associated with a major college. The study says that people must stop looking at retirement in terms of simply building up a savings account. The study suggests that everyone, and especially those in divorce or recently divorced, must think about generating retirement income. Because everyone’s situation and finances are different, however, the conclusions may not apply across the board.
Some experts believe that annuities may be a good purchase for divorcees. This type of investment vehicle can come with a feature that guarantees a set income and may help generate additional income. A spouse with lower income coming out of a divorce may find annuities to be particularly helpful but again, this is the kind of determination that requires study of one’s circumstances and needs.
Whether any particular remedy or investment strategy applies may be a question to answer in consultation with a qualified financial planner who specializes in divorce planning. Because a divorced couple shares the inconveniences of legal fees, asset division, increased living expenses, and possibly less income, making up for the loss should be considered. Alimony and spousal support may become important in that respect.
An important question may arise over whether to keep the family home. The expenses associated with keeping a family home can be crippling in some cases, making other planning strategies key to post-divorce retirement funding. For example, a lower-earning spouse who was married for at least 10 years may be eligible to obtain increased social security benefits based on the higher earnings of the former spouse. The foregoing considerations apply to those who obtain a divorce while residing in Georgia as well as in all other states.