When you end your Minnesota marriage, you may find that your retirement savings take a serious hit. This is concerning for anyone, but you may feel especially fearful about it if you are divorcing later in life and you plan to retire within a number of years.
Your retirement picture is going to look different after you and your spouse part ways. However, there are some efforts you may want to take to replenish your retirement accounts in the time you have left. More specifically, you may want to consider doing the following.
Obtain a Qualified Domestic Relations Order
If your spouse had a retirement plan through his or her employer and you did not, obtaining a QDRO is an important and necessary step. QDROs are often complex. However, having one is the only way to secure a payout from your spouse’s pension or 401(k).
Revisit your retirement plan
You may need to adjust your retirement plan in the wake of a divorce to make sure it still fits your needs. Consider when you plan to start accessing the funds inside and how long you have to build back savings. Assess the level of risk in your plan and consider whether it is still appropriate given your new situation.
Create your own savings
It is also beneficial for you to add to your personal savings account as a result of divorce. Try to have about six months of savings available to you so that you do not have to potentially draw from your retirement savings in an emergency.
Once your divorce becomes final, you do not have many options when it comes to retirement. For this reason, it is critical that you consider how to put away as much as possible for retirement before your marriage officially ends.