Retiring Single: 5 Strategies to Consider for Financial Independence and well-being

By Jennifer Napper, CFP®, CDFA®

Retiring as a single individual comes with its own set of unique challenges and considerations. Whether you're single by choice, due to divorce, or the loss of a partner, planning for retirement as a single person requires careful financial strategies to help ensure an independent and fulfilling future. As a CERTIFIED FINANCIAL PLANNER® professional, I understand the importance of tailoring retirement plans to meet the specific needs of single retirees. Here are five key strategies to consider for a successful retirement journey.

1. ESTABLISH A COMPREHENSIVE RETIREMENT PLAN

• Building a solid retirement plan is fundamental, especially when you're navigating retirement on your own. Start by evaluating your current financial situation, including savings, investments, assets, and any potential sources of retirement income. Factor in Social Security benefits, pension plans, and any other streams of income available to you.

• Craft a detailed budget that reflects your anticipated expenses during retirement. Consider healthcare costs, housing, daily living expenses, travel plans, and any other lifestyle choices you wish to maintain during your retirement years. Having a clear understanding of your financial landscape will guide your decisions and help set realistic retirement goals.

2. FOCUS ON BUILDING A ROBUST EMERGENCY FUND

• As a single retiree, having a robust emergency fund is crucial. Unlike couples who may have dual incomes or shared resources, being single means relying solely on your own finances. Aim to set aside a sufficient emergency fund that covers at least six to twelve months' worth of living expenses. This safety net can provide a buffer in unforeseen circumstances, such as health emergencies, home repairs, or unexpected job changes.

• Consider keeping this emergency fund in easily accessible accounts with low risk, such as a high-yield savings account or a money market fund. This financial cushion offers confidence and reassurance in times of need.

3. MAXIMIZE RETIREMENT SAVINGS AND INVESTMENTS

• Maximize Retirement Savings and Investments: Take advantage of retirement savings accounts and investment opportunities to plan your financial future. Contribute regularly to tax-advantaged accounts like 401(k)s, IRAs (Traditional or Roth), and Health Savings Accounts (HSAs), if eligible. Maximize contributions to these accounts, especially considering catch-up contributions available to individuals aged 50 and above.

• Diversify your investment portfolio based on your risk tolerance, time horizon, and retirement goals. Consult with a financial advisor to tailor an investment strategy that aligns with your unique situation. Consider a mix of stocks, bonds, mutual funds, and other investment vehicles to create a well-balanced and diversified portfolio.

4. PLAN FOR LONG-TERM CARE AND HEALTHCARE EXPENSES

• Plan for Long-Term Care and Healthcare Expenses: Single retirees often need to plan more extensively for healthcare and long-term care costs. Research and consider long-term care insurance options to protect yourself against potential expenses associated with medical care, assisted living, or nursing facilities in later years.

• Additionally, understand Medicare coverage and supplement it with Medigap policies or Medicare Advantage plans to help ensure comprehensive healthcare coverage. Factor in potential out-of-pocket expenses for prescriptions, co-pays, and medical procedures when estimating your retirement budget.

5. CONSIDER ESTATE PLANNING AND LEGACY GOALS

• Estate planning is crucial for single retirees to help ensure their assets are distributed according to their wishes. Create or update legal documents such as wills, trusts, and powers of attorney to designate beneficiaries and protect your estate.

• Review and update beneficiary designations on retirement accounts, life insurance policies, and other assets to reflect any changes in your life circumstances. If you have philanthropic goals or wish to leave a legacy, consider charitable giving or setting up trusts to support causes important to you.

CONCLUSION

Retiring as a single individual requires meticulous planning and foresight. By implementing these strategies and working closely with a financial advisor, you can pave the way for a confident and fulfilling retirement. Remember, each individual's retirement journey is unique, and personalized financial planning is essential to achieve long-term financial stability and well-being. Start planning today to Help ensure a prosperous and comfortable retirement as a single retiree.

At Napper Wealth Planning, we aim to be your advocate, your strategist, your active listener and your go-to call for all things financial. We understand that your finances are much more than just numbers on a spreadsheet.

We know that, in many ways, your finances reflect your life and the changes you are facing. Simply put, we’re not in the business of cold calculations. Our business is people and possibilities.

Through all the chapters of your life, we’ll be here for you.

Book a complimentary consultation with us today at www.calendly.com/jennifernapper

Jennifer Napper, CFP®, CDFA® is Vice President, Investments with Napper Wealth Planning of Raymond James in Walnut Creek, CA. She is a Certified Divorce Financial Analyst (CDFA®), specializing in helping anyone facing divorce to preserve their assets as well as plan for a brighter future. She can be reached at 925 952-5262 andJennifer.Napper@raymondjames.com. Learn more about her at www.JenniferNapper.com.

2999 Oak Rd., Suite 1030, Walnut Creek, CA 94597.

Raymond James & Associates, Inc., member of New York Stock Exchange/SIPC

Opinions expressed are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Past performance is not a guarantee of future results. Investing involves risk and investors may incur a profit or a loss.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Originally published on www.irooze.com