The kids have grown, family routines have shifted, and you are left with more time with your spouse to rekindle and rediscover. That’s the ideal scenario. However, with some general relationship dissatisfaction plus the effects of covid 19, such as in-home isolation, unemployment, and loss of healthy time away, divorce is on the rise. Women over the age of 50 are dealt with the shorter stick especially when it comes to their finances. Here are some reasons why and what you can do to take control of your work, your wealth, and your worth.
Career and Gender gap
Based on the eBook a Savvy Woman’s Guide to a Lifestyle of Abundance, women earn $.79 for every dollar a man earns in a similar profession. Women are more likely to interrupt their careers to care for the family. To prioritize your growing family, women may consider staying at home or a more flexible career with a lower-paying job. It is not easy to get a job after divorce when you have only worked “while kids are in school”. Your exposure to newer technology or apps may have been limited and adjustment to such may not be up to speed. Therefore, you may end up with jobs just to support you and that may be below your desired lifestyle.
Consider these tips from 22 Tips for 2022 to support you and help shift your mindset – it’s never too late! Ask for what you’re worth and invest in yourself. Wages are on the upward move for most people in America. Make sure that you understand what a fair wage is for what you do. Acquire a new skill and invest in yourself now to prepare for life’s curveballs. Focus on the next 3 years and do what it takes today to design your ideal lifestyle. Continue to dream bigger and bolder.
Social Security, Housing and Health Care
Check this article by the Social Security Administration stating that older divorced women are more likely to be poor than older widows, and historical divorce and remarriage trends suggest that in the future, a larger share of retired women will be divorced. However, it also states that “Social Security benefits and retirement incomes are projected to increase for future divorced women and that their poverty rates are projected to decline, due in large part to women’s increasing lifetime earnings. But not all divorced women will be equally well off.”
Moreover, understand what it takes to find housing post-divorce. Will you be able to afford a mortgage, live with your children, or rent? Also, alimony ends when the payor reaches 67 so there will be a couple of decades to think about funding your lifestyle.
There is also a concern about cognitive decline, out-of-pocket expenses, and long-term costs. Here is a resource that provides some guidance when it comes to costs related to retirement and healthcare: Unlocking Treasures to Financial Wellness. Saving up and thinking about them in buckets can help prepare for these, divorced or not.
Building Financial Security to prepare for life’s curveballs
While going through a divorce, one needs to make critical financial decisions at an emotional time. Getting the right group at your side who could advocate for you and provide guidance will be most beneficial for you down the line. It will be a challenge to recognize areas to investigate when one is emotional and hiring advisers will be to your advantage. There is no reason why you should be treated differently than the other side of the divorce. When times are emotionally intense, the surest path to progress is seeking support from dedicated professionals who have logged many hours into similar scenarios.
“Perfection is never the goal, progress is.” – Marilyn Suey
Please contact me if you have any questions or to schedule your complimentary Lifestyle Upgrade Assessment of your Financial House.
Marilyn Suey
CERTIFIED FINANCIAL PLANNER TM
Accredited Investment Fiduciary ®
