Retirement Planning As A Single

For many people, the idea of retirement planning revolves around the family.  You’re not only saving money for your own use after you stop working, you’re also looking at your legacy to be left to your family in terms of financial assets and wealth generation tools. 

On the other hand, for those who are single – and especially those who don’t have a family to leave that legacy to, retirement planning can be a challenge. 

For starters, you’re truly “on your own” – if you have a financial shortfall, there simply is no one else to help you.  In generations past, adult children could often assist their elders, but the breakdown of large family units – as well as the dispersal of kids around the country and the world – makes that analogy dated. 

So what can you do to make sure you’re saving enough? 

The first thing is to acknowledge the challenge and identify the team who can support you. 

To me, the most logical members of this team are your primary care physician, your CPA, your financial advisor, and the attorney who is developing your estate plan. 

(I’ll also add in your life insurance agent, especially for those who have wisely invested in whole life or universal policies.)

Each of these folks can help you not only counsel you on how to budget, where to turn for care or assistance, and even, when the going inevitably gets tough, how to make the correct decision. 

One thing you cannot do – you can’t wait.  Even if you’re young and still might marry, having this team assembled and providing you advice and planning only strengthens your ability to retire in the style you wanted to in the first place, regardless of whether you have one or two streams of income to save with. 

Understand, though, that certain guidelines change when you’re by yourself.  For many years, I’ve advised an emergency fund of at least three month’s income, but when speaking with my single clients, I purposefully up that number to 12 months. 

Why? 

Safety.  That same winter you get laid off will be the one your furnace quits in, and remember, in the case of a family with dual incomes, one member being laid off still allows for “new” cash to be coming in. 

As a single earner, you’re making less and when you lose your job, ALL income stops. 

Better to have reserves than worries. 

It’s a complicated endeavor, so its critical you recognize that many of the traditional answers to the challenge of retirement planning are different for singles.  My best advice is to really dig into how to properly structure a long term plan – reach out to me, reach out to the others experts on your team, and get this process started. 

We’re here for you!

IMPORTANT: Our firm specializes in tax resolution. We also serve clients virtually so don’t hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Make an appointment here!  Or, call Toll-free 1-855-254-1892.