Retirement Planning for Today's Lifestyles DIVORCEES -- Maximize contributions to your retirement plan at work, and begin separate savings account to protect retirement assets. -- Consider taking out life insurance on your ex-spouse if he or she is responsible for child support. Buy disability insurance. -- Revise your estate plan after the divorce. In some states, a divorce doesn't automatically revoke your will or certain trusts if your ex-spouse is a beneficiary. UNMARRIED COUPLES -- Determine early if your employer allows a joint-and-survivor benefit for a nonspouse. If so, inform your plan administrator while you're still employed, since the method of distribution can't be switched after you retire. -- Blood relatives will usually win out in disputes over assets that arise after death. Clearly spell out your intentions in legally binding documents. At a minimum, have a will. -- Unmarried couples don't receive an unlimited exemption from estate taxes as do wedded couples when the first partner dies. Therefore, consider techniques to minimize estate taxes, such as a charitable remainder trust. GAYS & LESBIANS -- Consider saving more than the usual 75% to 85% of gross pre-retirement income if family relations are strained and relatives may not provide support. -- A partner has no right to the proceeds from his or her companion's defined benefit pension plan if the companion dies before distributions begin. -- Unmarried partners are not entitled to their partner's Social Security checks after their partners die. DATA: BUSINESS WEEK Return to main story

Updated July 11, 1997 by bwwebmaster
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