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‘I Don’t Own a Home’: I’m 62, Unemployed, and Have $1.5 Million for Retirement. Can I Afford to Divorce My Husband?

Divorce is tough at any age, but when you’re 62, it comes with some extra stress. People often think that having $1.5 million saved means you’re set for life. But without owning a home and no steady job, it’s not that simple. I’ve seen firsthand how that nest egg can feel a lot smaller than you’d expect.

The Big Question: Is $1.5 Million Really Enough?

Let’s start by getting real about what $1.5 million means. Financial pros often talk about the “4% rule” — basically, you can safely withdraw about 4% of your savings each year to live on. For $1.5 million, that’s roughly $60,000 a year. Sounds good on paper, right? But life rarely follows the rules. Market swings, surprise bills, and just day-to-day living usually throw a wrench in that plan.

And remember, at 62, Social Security benefits aren’t at their peak. You’ll get less if you claim early, and after a divorce, your benefits might change depending on how long you were married and your ex’s work record.

Housing: The Game Changer You Can’t Ignore

Not owning a home changes everything. Rent can gobble up a huge chunk of income. In many cities, rent alone can eat up more than half of what retirees bring in, especially if you’re living solo. Paying $2,500 a month? That’s $30,000 a year, and rent tends to climb faster than inflation.

Some folks use part of their savings to buy a condo or townhouse after divorce. But that means less money left to generate income, and with today’s housing prices, making the math work can be tricky.

Health Care: The Hidden Budget Buster

Before Medicare kicks in at 65, health insurance can be painfully expensive. COBRA coverage is often sky-high, and ACA marketplace plans aren’t cheap either. Expect premiums and out-of-pocket costs to easily hit $8,000–$12,000 a year or more. It’s a surprise expense that trips up a lot of people.

Dividing Assets and Income: The Divorce Details

“Gray divorce” has its own set of challenges. Depending on the state, you might have to split your assets down the middle—or maybe not. If your $1.5 million is all joint money, you could end up with just half. And legal fees? They add up fast, especially if things get complicated.

If your husband is still working, alimony might be on the table, depending on state law, his income, and how long you were married. Social Security lets you claim benefits based on an ex-spouse’s record if you were married 10+ years and stay unmarried. But don’t expect that to fully replace what you lose.

The Emotional Price Tag

Divorce isn’t just financial—it’s emotional. It can shake your mental health and daily routine more than you expect. Losing the support—even if the marriage wasn’t perfect—leads to quick decisions that don’t always pan out. Plus, new expenses pop up: therapy, moving, setting up a new place, maybe even a furry friend for company.

Where This Plan Could Fall Short

Let’s be honest: Sometimes $1.5 million isn’t enough. Here’s why:

• Living in pricey cities: Places like New York or San Francisco are brutally expensive. $60,000 a year before taxes and health care won’t stretch as far as you’d hope. If your heart’s tied to a pricey area, you might have to downsize or even move.
• Market ups and downs: The 4% rule assumes markets behave nicely and inflation stays steady. But we all know that’s wishful thinking. A bad market hit right after your divorce can seriously shrink your savings. Some folks end up taking part-time jobs just to stay afloat.

What Works—and What Doesn’t

If you’re open to relocating, $1.5 million can definitely work in smaller cities or college towns where costs are lower and health care is decent. The key is being willing to live a bit leaner.

On the flip side, if you have big medical needs, love traveling, or want to help adult kids or grandkids financially, things get tight fast. Remember, living apart almost always means doubling up on expenses.

Practical Tips Before You Take the Leap

• Run the numbers: Find a fee-only financial planner who’ll give you honest, personalized advice. Don’t just rely on calculators online.
• Take inventory: List all your assets—pensions, IRAs, brokerage accounts—and figure out what’s joint or separate.
• Consider taxes: Withdrawals from retirement accounts are taxable, and that can cut your income by 10–20%.
• Get real on housing: Look at actual rents or home prices in places you want to live, not just averages.
• Plan for health care: Know what you’ll pay before Medicare, and factor in Medigap or Medicare Advantage costs after.
• Think about work: Even a part-time gig can ease the pressure. Be honest about whether you’re ready to stop working altogether.

Final Thoughts

Divorcing at 62 with $1.5 million but no home can work—but it’s not a guaranteed safety net. The biggest traps are underestimating how fast money disappears living on your own, plus rising housing and health care costs. If you’re willing to tighten your belt and plan carefully, it’s doable. But don’t let that seven-figure number fool you into thinking you’re completely secure.

At the end of the day, it’s about more than just dollars. Your priorities, how much risk you can handle, and your flexibility all play a role. There’s no one-size-fits-all answer, but with clear eyes and solid planning, you can find the path that’s right for you.

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