Making plans for retirement is an important stage of life, particularly for those who are reaching this milestone on their own – a group known as “solo agers” or “elder orphans.”
Retirement planning has its hurdles, but it can be made more difficult if you do it alone, without the assistance of a spouse or close family.
Solo agers can, however, clear the path to a safe and contented retirement with the appropriate plans and forward-thinking.
These are eight crucial pointers for single individuals starting to prepare for retirement.
How do you define a solo ager?
A “solo ager” is an older person who doesn’t have a spouse, children, or close family to help them in their later years. Solo agers, who are also called “elder orphans,” deal with getting older and retiring without close family members to care for, support, or help them.
These people might not have any kids, be single or divorced, have survived their spouse and relatives or just not be in a position to have support from others.
You are a solo ager if you are:
- a person or couple without children
- someone who has never been married or had kids
- someone who lives alone after a breakup or the death of a partner
- someone or a couple whose children or other relatives live far away or are estranged
Why should solo agers plan for retirement?
When planning for retirement, solo agers face some unique problems, mostly because they don’t have immediate family help.
If there aren’t any close cousins or children, there isn’t a natural caregiver or family member to take care of financial, health, or emotional needs in old age.
Because there isn’t built-in help, single seniors often have to look for other ways to protect their health.
70% of older Americans in the United States will likely need care someday. But if you don’t have a strong family and/or social network, it’s important to plan ahead now to take care of your future self.
8 Retirement Planning Tips for Solo Agers
#1. Build a support network.
Solo agers often don’t have family support.
To make up for this, it’s important to build a strong network of friends, advisors, and community tools. Joining a neighborhood club, community group, or religious institution can help you find friends and support during retirement.
#2. Create a comprehensive estate plan.
For solo agers it’s important to make an estate plan that is clear and full of details.
Wills, trusts, power of attorney, and healthcare instructions should all be part of this plan.
You might want to talk to an elder law specialist to make sure that your wishes and assets are carried out correctly.
#3. Invest in long-term care insurance.
Solo agers may not have family members to rely on in their later years, so buying long-term care insurance can be a good idea.
This insurance can cover the costs of medical care, nursing homes, or in-home care, giving you peace of mind about your finances in case you need it.
#4. Diversify your retirement savings.
Diversify your investments to get the most out of your retirement savings.
Look into different types of retirement accounts, such as IRAs, 401(k)s, and pensions. Diversification lowers risk and raises possible returns, which makes your financial future safer.
#5. Consider your housing options.
As you get older, your housing needs may change.
Look into different housing choices for when you retire, such as:
- moving to a retirement community
- downsizing to a smaller home
- or looking into shared housing
Make long-term plans for a safe and comfortable place to live.
#6. Stay active and healthy.
A commitment to healthy living can give you a better chance at a fulfilling retirement.
A balanced diet, regular exercise, and proactive health care can all make a big difference in your general health. Prioritize preventive health care to lower your future health-related costs.
Staying active can also lead you to getting involved with new social groups, like a pickleball team or a walking club.
#7. Stay informed about government benefits.
Solo agers should be aware of and take advantage of available government benefits and entitlement programs.
Learn everything you can about Social Security, Medicare, and other services that may be able to help you with money or health care.
#8. Consult with financial and legal professionals.
Get advice from financial managers, accountants, and lawyers who specialize in planning for retirement.
Their knowledge can help you figure out tricky financial issues and make plans for your retirement that are tailored to your needs. Their expertise and experience could also uncover options you’re probably not even aware of.
4 Additional Tips for Retirement Planning
1. Pay off all your debts before you retire.
It might seem like a no-brainer, but if you’re not very well prepared, you will not be able to pay off your bills as easily as you could when you were working.
Now that you know that, make sure you clear as many as you can while you still can. Also, if you’re trying to get into a care home and bill collectors are after your assets, that can stop you in your tracks.
2. Plan a budget.
When thinking about how retiring will affect your money, it’s helpful to make a retirement budget.
- What do you have planned?
- Have you thought about starting a new hobby?
- What do you anticipate your lifestyle cost will be each month?
- Are there things on your list that you still want to do?
Figuring out how much you’ll need each month and each year for retirement will inform other decisions you need to make.
3. Keep working.
The most important things to think about before making a retirement decision are:
- whether you can afford it
- if you’ll need to keep working
Even if it seems nice to not have to wake up early for work every morning, some people may become irritated or upset because they lose the motivation to get out of bed in the first place.
You may find out that you need to keep working after retirement to feel alive and have purpose. Leaving the house gives you an opportunity to meet new people, keep your mind busy, and, of course, get some extra money to pay your bills.
With interest rates and inflation making the cost of living more expensive, working during retirement might give you an extra layer of protection from financial uncertainty.
If you’re unsure about working after retirement, or how you would adjust to a retirement lifestyle, you can consider trying out a phased retirement to test the waters before making a final decision.
4. Stay mentally active.
You need to take care of more than just your physique.
Keeping your mind active has many proven benefits, from preventing sadness to delaying or slowing down the start of dementia.
Solo Agers? Final thoughts
Planning for retirement can be hard for solo agers who have no social support network.
But it is possible to have a safe and happy retirement with some careful thought and planning. Solo agers can easily move into this new stage of life if they take the right steps and get the right help.
Remember that everyone’s situation is different, so you might want to talk to professionals who can give you advice that is specific to your case.
Editor’s note: This article was originally published Nov 27, 2023 and has been updated to improve reader experience.
