By Steve Dinnen Are you married? Stay that way, advises Principal Financial Group Senior Vice President Sri Reddy (pictured). Divorce can be financially ruinous, especially if you’re nearing retirement. Moving in to the fixed-income phase of your life in retirement will make it difficult to rebuil d assets. The Social Security Administration announced on Wednesday that payments to recipients will rise 3.6%, starting in January, to adjust for the cost of living. Inflation is just a step ahead, at 3.7% year over year. For Reddy, these numbers highlight that retirement security is built over decades and extends well beyond any single annual adjustments. Here are a few themes Reddy is watching: Cost-of-living adjustments help retirees keep pace with rising expenses, but longer-term challenges such as healthcare costs, housing expenses and longevity remain top financial concerns. Healthcare expenses are likely to rise as you age. Financial uncertainty continues to influence retirement timing and workforce participation. According to Gallup, 69% of current workers are very or moderately worried about having enough money for retirement, underscoring the importance of workplace savings programs and financial guidance. Social Security remains a critical source of retirement income, but individuals benefit most when it is viewed as one component of a broader retirement income strategy. Reddy has some tips for tackling these issues, starting with the aforementioned “stay married” advice. Getting a divorce usually chews up lots of money on legal fees. Worse, it leads to the creation of two households and attendant expenses. So bear in mind the proverb that two can live as cheaply as one. Delay collecting Social Security as long as possible. You can claim Social Security benefits as early as age 62, but your benefit will be reduced by as much as 30%. That reduction is permanent. Delaying Social Security also means you’re still working, so you’re still contributing to your retirement savings account, like a 401(k), thereby building, not draining, your asset base. But when the time comes to stop working, you don’t have to quit cold turkey. Many employers will allow you to trim your hours over time. If you’re self employed — as a doctor, dentist or lawyer, for instance — you can gradually scale back the hours you spend in the office. This has a three-fold positive impact. You still have an income stream, you’re allowing Social Security credits to keep ramping up. And, Reddy noted, as long as you’re still busy working, you’re not out spending money. ...read more read less