Nearly 35 million households in the United States are single person households – that’s about 30% of all households. Many people do not have children. Yet, many financial plans are based on the presumption that there will be a spouse or children to consider. That’s just not the case for many people.
Many single people have specific planning needs
- How can we plan for a time when we might need extended care?
- How can we be sure that our choices and decisions about how we live our lives will be respected?
- How to coordinate with other legal and tax professionals to ensure your wishes are being carried out?
- What kind of financial planning is needed since I don’t have a spouse or children?
Single people have more retirement planning needs than others, not less. Those of us who live on only one income are reliant on only ourselves to ensure that our retirement dreams can be fulfilled, that our bills can be paid if we become ill or have an accident, and should we meet someone and marry later in life, our interests can be protected.
As we get older, solo agers have needs and concerns that others may not – especially if we have issues with our biological families. Oftentimes, when a single person becomes incapacitated, a court-appointed stranger or an estranged family member will enter the picture. For those of us who want to have our life choices and our decisions respected, this can be unwelcome, at best. This planning involves more than just a good investment portfolio. Your legal papers need to completed and kept updated*. What those papers outline needs to be coordinated with your financial plans to ensure your designated choices can manage your affairs as you choose.
*I cannot provide legal or tax advice. I partner with other professionals and refer clients to them to provide those services.