Saving for retirement involves lots of planning and calculations for every adult; however, if you are not married and don’t have children, you’ll need special strategies for retirement saving and planning.
If you are anticipating a single retirement, you are not alone. According to the U.S. Census, approximately half of all American adults are married. In addition, close to one-third of baby boomers don’t have children. Others may age alone due to the death of a spouse, a divorce or estranged or unavailable children.
Here’s what you need to know about retiring alone:
Create your own support system
One of the greatest challenges of retiring alone is not having a built-in support system through a spouse and children. Isolation and feelings of loneliness can be one of the strongest factors in early aging and general unwellness, so it’s a good idea to build your own support system if you’re planning on retiring single. This can take the form of a close group of friends who live near your home and are happy to join you for fun outings or occasional errands. If you don’t have this group of friends, make new ones by attending local social events through Meetup.com, befriending your neighbors in your community, or spending time at a senior center for active adults.
Identity your most trusted friend
It’s a good idea to choose one friend to serve as your emergency contact and to make decisions on your behalf in case you become incapacitated for any reason. Failure to appoint this person can mean decisions about your health and welfare can be relegated to your closest living relative, which may be someone with whom you have no relationship at all.
Choose your trusted contact and draw up a medical power of attorney so they can make decisions for you if the need arises. Save this person’s contact info in your phone, titled “In Case of Emergency,” or “ICE”, so someone can easily find this number in your contacts should the need arise.
Get creative about your housing options
When looking for a place to retire alone, there are loads of options to consider:
Move abroad to a country with a low cost of living where you can check out the sights, get to know the culture, and experiment with the cuisine.
Team up with a friend or two for built-in companionship and shared living expenses.
Choose a retirement community with senior-friendly amenities and walkable conveniences.
Consider long-term care insurance
Did you know that most adults turning age 65 will need long-term care at some point in their lives?
Long-term care can be expensive. As a single retiree, you’ll likely feel more secure knowing you have coverage for a long-term care facility or at-home care should the need arise. A long-term care policy may not be cheap, but may be worth the security it brings you. Look into TruStage, affordable and reliable life insurance offered exclusively to Oregonians CU members.
Know your Social Security claiming options
If you have never been married, or have never had a marriage that lasted 10 years or more, your Social Security claiming options are simple. You are likely best waiting until age 70 to claim, unless you believe your life expectancy will be shorter than average. If you do claim your benefits before reaching full retirement age, and you continue working, make sure your income does not exceed the Social Security earnings limit at the time, or you may end up owing money.
If you have a previous marriage that lasted 10 years or longer, you may be able to claim a spousal benefit based on your ex’s earnings record and switch over to your own benefit amount when you reach full retirement age. If your spouse is deceased, you may be eligible for a widow/widower benefit based on your late partner’s earnings record.
Be sure to review your options carefully before making your choice.
A single retirement may look a bit different than a retirement shared with a life partner, but by planning ahead and following the tips outlined above, these can be the best years of your life. You can also schedule a no-cost consultation with an experienced Financial Advisor or subscribe to our Financial Planning eNewsletter.
Related Article: 5 Good Money Habits to Boost Your Retirement Savings
Your Turn: Are you planning for a single retirement? Share your best tips and ideas with us in the comments.