Q. I’m 58 years old and am single. I would like to retire in the not so distant future, but most of the information available is for married or even divorced people, and I’m feeling lost. I’m not feeling confident about retirement and sometimes even worry I will run out of money and have no one available should I need assistance in the future. Do you have any tips you can offer single people who are hoping to retire soon? Thanks so much for your help!
A. Many Americans are preparing to age without a spouse or adult children who can help. Currently, 22% of people 65 and over are single and childless. With more Americans staying single, high divorce rates, and marriage rates declining, more people could face this scenario in the future. Only 12% of the women who were 80 to 84 years old in 2010 were childless, but that will increase to 16% for that same age range in 2030, according to a report by AARP.
Single Workers Not as Confident About Retirement
A survey conducted by the Employee Benefit Research Institute (EBRI) found that unmarried workers had lower levels of retirement confidence than their married counterparts and were more likely to have fewer resources and be less prepared for retirement. The research also found that over half of unmarried seniors (women, in particular) retired earlier than they expected.
The study found that 76% of married women express being very or somewhat confident they will have enough money to live comfortably throughout their retirement years, with only 43% of divorced women workers and 51% of never-married women workers sharing this confidence.
This study explored the array of possible marital statuses of workers and retirees, and their perceived and actual retirement prospects, and here’s what the study found:
According to Craig Copeland, Senior Research Associate at EBRI, and author of the report: “The survey results show that women in differing situations could benefit from receiving more specialized information and assistance with retirement preparations and everyday financial issues.” A copy of the Issue Brief, “Retirement Confidence Survey: Attitudes Toward Retirement by Women of Different Marital Statuses” can be found at www.ebri.org.
How Single Seniors Can Ready Themselves for Retirement
Single seniors, particularly women, have long been at a disadvantage in retirement. Generally, they earn less than men, interrupt careers to raise children or care for parents, and live longer.
Financial advisors stress the importance of single women starting to think about retirement even earlier than other people. Their focus should be not only on saving more than their married peers, but also thinking differently about insurance, retirement housing, caregiving plans, and estate planning.
These are some strategies for single seniors:
Are you an “Elder Orphan”? There’s a Facebook Group for You
Carol Marak, a 67-year old single woman coined the term “Elder Orphan” for people similar to herself who have never been married and don’t have children. She started a Facebook Group, “Elder Orphans” with nearly 10,000 members. Marak requires that prospective members be age 55 and over, unmarried, and without nearby children. Members of the Elder Orphan Facebook group seek solace among one another, asking advice about everything from leaving the working world to what to cook on a weeknight when delivery pizza won’t cut it anymore. “It’s been impossible in my current life to find folks who can understand what I’m facing being 64, never married, no kids, nephews or other relatives in my life,” one poster wrote. “I foolishly counted on my ‘family of friends’ to be around in senior years, but they all have spouses, kids and grandkids, plus oodles of other relatives, and tell me they are too busy to be involved with me.”
Estate Planning and Retirement Planning for Solo Agers
As mentioned previously, estate planning is crucial for solo agers. What would happen if you were to suddenly become incapacitated, and you were an “elder orphan?” Who would make medical decisions for you? If you haven’t worked with an experienced Elder Law Attorney, the answer to this question becomes quite complicated. Maybe it would be your next closest family member. Most likely, it would not be your best friend or whomever you would choose. Even if your closest friend would be your first choice, your friend would have no legal power unless you have your wishes legally documented in a properly-executed Advance Medical Directive.
And what about your finances? If you are unable to pay your bills and take care of your other legal and financial affairs, who do you think will do so? The answer to that is: whomever the courts say. And first off someone will have to go to court and have you declared legally incompetent.
Finally, what will become of your things if you should unexpectedly pass away? Who would have legal rights to your belongings, to your home, to your pets? You may think you know the answers, but without clearly outlining your wishes with an Elder Law and Estate Planning attorney, you have very little control over the matter. An experienced Elder Law and Estate Planning attorney such as myself can easily get you on the path to having these affairs in order.
It is also incredibly important to protect your quality of life in your golden years with effective retirement planning and long-term care financial planning. Besides being a Certified Elder Law Attorney, I am also an experienced retirement planning advisor and long-term care financial advisor through my financial services company, Lifecare Financial Services, LLC. Also, in order to provide more complete financial services to our clients, I am pleased to announce that I have recently become affiliated with a federally registered investment advisory firm, Protection Point Advisors. Through my affiliation with Protection Point Advisors,* you may elect to receive comprehensive investment advisory services not offered by the Farr Law Firm.
Call us to make an appointment for a no-cost introductory consultation
If you would like more information about estate planning, financial planning, retirement planning, long-term care planning, or investment advisory services, please contact our office to make an appointment for a no-cost introductory consultation:
Fairfax Estate Planning Attorney: 703-691-1888
Fredericksburg Estate Planning Attorney: 540-479-1435
Rockville Estate Planning Attorney: 301-519-8041
DC Estate Planning Attorney: 202-587-2797