Division of Retirement Accounts a Growing Concern in Divorce

Most Americans can expect to live for about 15 to 20 years after their retirement. But are we saving enough to live comfortably in retirement? Among families with income in the 50th percentile and above, over 80 percent at least have some type of retirement account, such as an IRA, 401(k), or defined-benefit pension plan. That is a good start, but most are not saving enough. A recent survey found that just 40 percent of those aged 35-54 and just 50 percent of those age 55+ have over $100,000 in retirement savings. By most accounts, this is not nearly enough, even considering the addition of Social Security payments. According to a recent Harvard Business Review article, a median income worker can only expect their Social Security payments (after Medicare premiums) to equal 29 percent of pre-retirement income. Hence, it is important to highlight the need to make sure retirement accounts are equitably divided in a divorce. It is all too easy to focus on pressing issues like …

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