Solo retirement requires financial planning.
Most people will be single in retirement at one point.
Some people live their entire lives single.
As married couples age, one spouse typically outlives the other.
“Gray divorce” is also growing in prevalence.
According to a recent Go Banking Rates article titled “Why Every Woman Needs To Plan for a ‘Second Retirement,‘” living alone comes with greater financial burdens and risks.
Working with a financial planner can help you be more strategic and practical when preparing financially for retirement.
How can you take steps toward financial security in solo retirement?
Review your retirement plan.
Not everyone has a plan in place.
If you do not have a retirement plan, you should create one with a financial planner.
If you have a plan, you should look it over to see if it accurately addresses your current assets and goals.
Did you have a plan with your spouse?
It may be helpful to revisit this because several factors may look significantly different while single again.
Reassess your expenses.
How a single person spends money often looks different than how a married couple spends money.
Some expenses may rise while others may disappear.
Your budget should be set for your current needs.
Consider your income sources.
From where does your money come?
Income can be sourced from annuities, pensions, retirement accounts, and Social Security.
Reviewing your income will let you know if you need to adjust your budget or consider working part-time.
Review your insurance coverage.
Insurance in retirement typically involves one or more of Medicare, supplemental insurance, Medigap, and long-term care insurance.
Does your insurance still meet your needs, or do you need to make changes?
If you are a long-term care insurance (LTCi) policyholder, you should continue paying your insurance premiums.
There is an excellent reason why people do not drop their LTCi.
What are the odds of needing long-term care once you reach age 65?
Only “dying” beats it at 100%!
Consequently, LTCi premiums are one “for sure” in the Krull family budget.
Plan for long-term care.
The cost of long-term care tends to be high, too.
In fact, it can become a significant expense for many in retirement.
If you do not plan and prepare for this need, you may spend more than you would have needed.
You should consider the options of assisted living, nursing home, and in-home care, as well as how you will pay for these.
Stay involved and connected.
You are living solo in retirement but do not have to be isolated.
Prioritize social connections through friends, family, volunteering, community groups, and hobby or interest groups.
Staying connected and active benefits will pay dividends physically and mentally.
Have a Plan B.
Even the best-laid plans can be rattled by unexpected circumstances.
Although you cannot control family crises, health crises, and stock market downturns as an individual, you can be prepared.
Having emergency funds or insurance can provide more financial security.
By creating a financial plan now, you may experience less stress if you must spend much or all of retirement alone.
Reference: Go Banking Rates (May 1, 2023) “Why Every Woman Needs To Plan for a ‘Second Retirement‘”