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Preparing for a Single Retirement? 4 Salient Tips for Women Thumbnail

Preparing for a Single Retirement? 4 Salient Tips for Women

Women in the United States generally retire around the age of 66.1 And for some women, there can be significant planning challenges involved in preparing for a single retirement - meaning one without a partner or spouse to share the financial responsibilities. When facing retirement head-on, preparedness is a key component of securing financial stability and independence. Here are four tips women can use to plan and prepare for a peaceful, financially sound retirement. 

Tip #1: Have a Plan

A 2020 study found that around 51 percent of unmarried women have not saved for retirement. By comparison, that number drops to 24 percent for married women.2 The problem is, it’s likely you’ll be spending 10, 20, 30+ years in retirement, so having substantial savings is instrumental. The Department of Labor recommends that retirees prepare to live on 70 to 90 percent of their pre-retirement income in order to maintain their usual standard of living.

If you’re living on a single income, saving for retirement may be extra challenging. Developing a financial game plan with plenty of time to prepare can help improve your retirement savings and odds of financial success. 

Tip #2: Prepare For Long-Term Care

Someone that is turning 65 today will have almost a 70 percent chance of needing some type of long-term care services and support in the coming years.3

With that being said, it may be beneficial to consider a long-term care insurance policy to help cover such costs. Even if you have family or friends who can help, long-term sickness or injury may require care beyond what your family can help with physically and financially. How will you be cared for and who will pay for the care? Assisted living and long-term assistance can be incredibly expensive. 

Tip #3: Seriously Consider Delaying Social Security Benefits

Social Security provides benefits and financial protection for women with almost 55 percent of the people receiving Social Security benefits being women.4 And it provides an inflation-protected benefit that will last as long as you live. When it comes to drawing from Social Security, it is strongly advisable to delay this until age 70. We like to refer to this as longevity insurance. Waiting one year adds 8% to your lifetime benefit. Wait five years and that’s an additional 40% every year until you check out. The only caveat here is a serious illness that may shorten your time with us.

Tip #4: Build a Network of Friends and Acquaintances

You may find yourself bored or lonely once you retire, so establishing friendships and acquaintances is a great way to find new activities and friendships. In fact, studies have shown that strong friendships can actually improve your health and prolong your life.5

Some ways to build new friends and acquaintances could include:

  • Attending local events
  • Starting a new hobby or interest
  • Volunteering
  • Joining a walking or exercising group

Retirement planning can be difficult enough as it is, but this can substantially escalate for single women. With the right planning, however, you can create a stronger future for yourself. And as always, don’t hesitate to call Lifeguard Wealth if you have any questions. We are here to help! 

  1. https://www.oecd.org/els/emp/average-effective-age-of-retirement.htm
  2. https://www.ebri.org/docs/default-source/rcs/2020-rcs/rcs_20-fs-5_gender.pdf?sfvrsn=f6bc3d2f_6
  3. https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
  4. https://www.ssa.gov/pubs/EN-05-10127.pdf
  5. https://www.health.harvard.edu/newsletter_article/the-health-benefits-of-strong-relationships

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.