It's an unfortunate fact that many U.S. marriages inevitably end in divorce. But things are looking up.
Data released by the CDC finds that U.S. marriage rates have risen in recent years. Not only that, divorce rates are going down. And that could spell good news for a lot of people's retirements.
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Why marriage is good for retirement
Let's get one thing out of the way. It's more than possible to retire comfortably as a single or divorced person on a single income. But the reality is that divorce at any stage of life has the potential to make retirement harder. So the fact that divorce rates are declining is positive news from a retirement perspective.
For one thing, the process of getting divorced can be expensive. Even in an amicable situation, there are attorney fees to cover and court fees to pay. In a less-than-amicable situation that drags on for months, the cost of a divorce could be downright catastrophic.
Either way, the simple fact of getting divorced could be an impediment to funding a retirement account for a period of time. So avoiding divorce could, for many people, mean having an easier time building savings.
Remaining married in retirement could also be financially advantageous by virtue of being able to share expenses, like housing, rather than have two people who are no longer wed pay those costs individually. And, of course, being married later in life often means being privy to two sets of benefits from Social Security instead of just one.
To be clear, divorcees can often claim Social Security based on their ex-spouse's records. But still, being able to share that income could be huge. Couples who remain married can also strategize together to maximize the Social Security income they're entitled to.
Positive news all around
Avoiding divorce could make for a more financially secure retirement. Of course, this isn't to say that you should force yourself to stay in an unhappy marriage due to the financial repercussions that might ensue. The point, however, is that it's a good thing to see divorce rates trending downward. At a time when so many Americans are woefully unprepared for retirement, having a financial and life partner could make that stage of life a lot more stable.
That said, if you do think you're likely to get divorced ahead of retirement, then it's important to prepare financially for that possibility. For one thing, do your best to boost your individual savings so you have more personal income to tap.
On top of that, do your best to boost your wages to set yourself up for a higher monthly benefit from Social Security. Granted, you may end up claiming spousal benefits based on your former spouse's record. But it could make more financial sense to claim Social Security based on your own earnings record if that results in a higher payday.
If you're convinced you'll be divorced by the time retirement arrives, it could also be wise to sit down with a financial advisor. They may be able to help you navigate that stage of life in the absence of a partner to share income and expenses with.
