Retirement Planning for Single Individuals: Why Your Strategy Should Be Different
When we talk about retirement planning, most advice is geared toward couples. But if you’re single—whether by choice, divorce, or widowhood—your retirement plan needs to account for some unique challenges and opportunities.
Let’s look at what makes retirement planning different for single individuals and how you can build a strong, confident plan.
You’ll Rely on One Income and One Set of Savings
As a single person, you’re the only one contributing to your retirement savings—and the only one drawing from it later. This means:
- You need to be extra intentional about saving
- There’s no second Social Security check or pension to rely on
- You may need a larger emergency fund for unexpected expenses
But you also have full control over your budget and decisions—no compromises needed.
Social Security Decisions Are Simpler—But More Critical
As a single person, there’s no spousal or survivor benefit to plan around. That means when you claim your benefit matters even more.
Delaying your benefit beyond full retirement age (up to age 70) can increase your monthly check significantly—potentially providing extra income for life.
This can be especially important since single retirees may not have other sources of guaranteed income, like a spouse’s pension or annuity.
Healthcare and Long-Term Care Need Extra Attention
Single individuals need a solid plan for healthcare and long-term care, since there may not be a partner to help provide support later in life.
Things to consider:
- Medicare enrollment and possible supplemental coverage
- Long-term care insurance or a plan to self-fund future care
- A Health Savings Account (HSA), if you’re eligible, as a tax-free way to pay for future medical expenses
Planning for your future care needs now gives you peace of mind later.
Estate Planning Is Especially Important
Without a spouse, it’s even more important to have your estate documents in place. You’ll need to:
- Choose a trusted person as your healthcare and financial power of attorney
- Create or update your will
- Name beneficiaries on retirement accounts and insurance policies
- Consider a trust if you want more control over how your assets are handled
These steps ensure your wishes are carried out and someone can help if you become unable to make decisions for yourself.
You May Pay More in Taxes
Single individuals may hit higher tax brackets with less income than married couples. This makes tax planning even more important, especially in retirement.
Consider strategies like:
- Roth conversions to reduce future taxes
- Tax-efficient withdrawals from different accounts
- Using charitable giving or qualified charitable distributions (QCDs) if you're inclined to give
The Bottom Line
Retirement planning for singles isn’t harder—but it is different. With smart planning, you can create a retirement plan that gives you financial security, independence, and peace of mind.
Need help building a plan that fits your life and goals? Schedule a free consultation today and let’s make sure your retirement works—just for you.
*We believe the information provided is accurate, but it’s not intended as tax or legal advice and shouldn’t be used to avoid federal tax penalties. For guidance on your specific situation, please consult your own tax or legal advisor. If you’re doing estate planning, it’s important to work with professionals, including your attorney or tax expert. This content does not include specific investment advice or recommendations to buy or sell any securities. Also, while strategies like asset allocation and diversification can help manage risk, they do not guarantee profits or protect against losses in a declining market.
