If you are close to the ‘golden’ years and you are unmarried, your situation is unique when compared to the majority of your peers. Depending on whether you have dependents or not, you likely have less debt than someone your age who is married with a family. However, all is not smooth sailing. There are some distinct concerns that you will have to address as your retirement draws closer.
Begin Making Plans
As an unmarried person who is close to retiring, you are about to join around 15 million other unmarried retirees whose concerns about this stage of their life are vastly different than someone who is married.
Some of these singles are divorced or have never been married, but an overwhelming majority of retired singles are widowed. This group is already familiar with end of life considerations and they understand they must also factor this into their plans when discussing retirement.
This means that a different set of considerations must be addressed when you begin planning for your retirement. Investment management companies like Carnegie can work with you to create a retirement plan for your specific needs.
Save as Much as You Can as Soon as You Can
When you are single, there will not necessarily be the option of sharing the cost of expenses or enjoying tax breaks like your married counterparts. There is also the absence of a spouse to help pick up the pieces if you become sick.
Knowing these disadvantages, it is critical that singles begin saving and become diligent about putting money aside for retirement. At least 10 percent of your yearly income should be placed aside for retirement.
Make Sure Your Plan Includes Longevity
People are living longer than ever before. Even baby boomers are living well into their 70s and 80s with few health issues. This is due to better health screening, disease prevention, and public health education. This also means that you need to plan for those years financially as well.
An annuity is an option that you can consider. These are calculated payments that you will receive. The annuity will continue to pay you until you pass away. The bonus? It will continue to pay even if you live past the contract’s earnings. This is known as an immediate annuity.
Your New Mission
The transition from full-time employment to retirement can be tricky for some people. Take the time now to think about what you would like to do once you are retired. Is there a trip you have always wanted to take but work got in the way? What activities will now occupy your days? How do you find your new purpose? How will you stay connected with friends? These are some of the things that only you can answer. However, this process is necessary so the transition will not be emotionally and mentally exhausting.
Consider Extra Sources of Income
There are retirees who continue to work on a part-time basis after officially ‘retiring’, or they start a business. This extra income can be used to anticipate a rise in living expenses or health care. Keep in mind that Medicare does not cover health expenses like vision and dental. It also does not cover extended care or long-term care.
Work with a reputable financial planner who can help to you finalize a retirement plan that will address your financial needs as you get older.
