Will I have enough money to retire?

Ending a long-term relationship may mean you’re saving for retirement on one salary instead of two. Although that may make you feel further away from your goals, you have options for helping your retirement savings catch up with your dreams.

Get your bearings

Once the dust has settled, make sure you’ve got answers to some basic questions about your finances. Here are some topics you may want to review with a financial professional.

• Investments. Did you and your former partner split any investments? If so, make sure you know your current balance and what you own.

• Equity. If you sold the house or your former partner bought you out, do you have an equity payout?

• Support. Did you get child or spousal support in a lump sum?

• Plan payout. Are you entitled to part of your former partner’s retirement, or are they entitled to yours?

• Existing retirement. Do you have your own retirement funds in a 401(k), 403(b), annuity or other account?

• Social Security. Were you married for 10 years before the divorce? If so, you may be entitled to an amount equal to half of your former spouse’s Social Security benefits.

Make adjustments

Once you know how much money you have, you can start thinking about the kind of retirement you want. First, you’ll need to know the numbers. Our retirement calculator can help. Don’t be surprised if you have a gap between what you want and what you have. You still have time, and there are ways you can catch up.

If you have investments, now may be a good time to consider making some changes. If it has been a while since you've looked at your portfolio, you may need rebalancing. Rebalancing means that you sell some of your investments that are doing well and buy more that are struggling. In other words, buy low, sell high.

It might feel counterintuitive — why would you want to sell investments that are making money and buy investments that aren’t doing well? When you decided how you’d invest, it was in line with your goals and risk tolerance. Rebalancing helps keep your portfolio that way. Like buying those expensive heels when they’re 75% off, rebalancing is about trying to get the most bang for your buck.   

Take the opportunity to work with your financial professional to balance your investments based your goals, current savings amount, profession and lifestyle. Your portfolio should reflect who you are. 

Get creative

If you still need to save more to get that retirement of your dreams, there are plenty of ways to make that happen. Remember that every little bit helps.

• Contribute more. If you have a 401(k) or other retirement account, find places to squeeze your budget. Can you bring lunch to work? Or shop at consignment stores instead of the mall? Small savings can help you contribute as much as you can. Make sure you’re taking advantage of matching contributions if your employer offers them.  

• Explore your options. If you don’t have a 401(k) or if you’ve maxed yours out, you can open a traditional or Roth individual retirement account (IRA). Your financial professional can help you decide which strategy is right for you.

• Do your homework. If you kept the house after a divorce, think about whether holding on is worth it in the long run. If you downsized or right-sized, you can funnel any profits into your retirement account. Plus, you may be able to reduce expenses in a smaller space.  

• Earn more. Can you take on a part-time job or seasonal work? Or rent out a room in your home? Maybe you can pick up some hours as a rideshare driver, tutor or delivery person. You can use any extra money you make at an “extra” job 100% for your retirement.