As Americans live longer, the meaning of retirement continues to shift. The wave of aging Baby Boomers ensures more active retirements on the horizon. However, longer-term retirement planning has become more challenging than ever with the downturn of the economy.

Adding to this challenge of planning for a longer retirement are the large numbers of people who will retire single. Reports show that 43 percent¹ of seniors over age 65 are single. This growing phenomenon occurs for a number of reasons – midlife divorce, outliving a spouse, or people who choose not to marry. Those in retirement alone face a greater financial burden.

Despite these challenges, single retirees can address six keys areas to better prepare themselves for retirement.

Plan for retirement as early as possible.
The cost of living for singles is 40 to 50% higher than for married individuals. Single retirees do not have another source of income to act as a financial cushion. Having a financial plan can ensure singles are prepared for retirement.

Build and sustain wealth.
With retirements lasting between 10 to 30 years, financial pressure has increased. Establishing your own independent retirement savings, investing aggressively, and recognizing the impact of inflation can safeguard finances in later life. 

Understand your income and expenses.
When income sources and expenses are out of balance in retirement, single retirees use their accumulated savings to meet spending needs. Using reserves can increase the risk of outliving one’s money. 

Consider changes in housing.
Preparing for normal aging changes may include downsizing and moving out of a familiar neighborhood. Housing is expensive, and having a roommate during retirement can be beneficial socially, emotionally, and physically.

Establish a social network for emotional (& physical) well-being.
The transition from working to not working can be tough. Feelings of identity loss and loneliness can be avoided by taking an active role in the community and staying socially connected. 

Devise a comprehensive health strategy.
Without the extra resources and care a spouse can provide, single retirees have a greater need to plan for health care expenses. Finding the right insurance and granting medical power of attorney to a trusted friend or family member can protect singles if they should ever be unable to speak for themselves.

Whether single or a couple, pre- and post-retirees can benefit from having a plan for later life to avoid the financial pitfalls of retirement.

¹ Data from 2011 U. S. Census Bureau Report

Change is a part of life. How do you know when to make changes? At some point, our own aging requires that we prepare for another stage of life. The normal physical decline of aging coupled with disease conditions require planning to ensure our choices. Decisions made during a crisis are often not the same decisions we would make if planning ahead.

Should I stay in my home or move to a senior residence?

That’s hard to say. If you have vision or mobility problems, your home could become very dangerous. Depending on where you live, getting to and from medical appointments and shopping could become difficult.

Safety is the primary concern. Certain modifications to the home can improve safety and allow you to age in place. If you live with a spouse and one or both of you remain healthy, you may be able to cover for each other. What if one of you is in poor health and has vision, hearing or mobility problems? Would moving to another location be easier for you in the long run?

What happens if the spouse acting as the caregiver becomes sick or dies? Will there be another family member or friend available to help? If the answer is “no,” moving now rather than later may be in your BEST interest.

When should I make these changes?

Each person’s situation is different. If you’ve recently been diagnosed with dementia and are in the early stages, it’s time to make these decisions NOW.

If you have aging diseases like macular degeneration, rheumatoid arthritis, or severe osteoarthritis, progression of these diseases could prevent you from gaining entry to housing areas of your choice.

Senior independent living requires that you are able to pass certain functional tests. Remaining in an independent living situation is much less rigorous. Many of the same functional tests are required for assisted living and must be applied for to those with early and middle stage dementia.

When I decide to make a change, what are my options?

Whether staying at home or making another transition, care managers can coordinate a plan and make the transition smoother. 

Modify
1) Modify home environment to safely age in place.

2) Purchase services privately.

Downsize
1) Garden home (one level)

2) Senior housing with support services
      a. Independent living (Apartments/Studios)
      b. Assisted living

3) Continuing Care Retirement Community (CCRC)
      a. Independent Housing (Apartment/Studio/Homes)
      b. Assisted Living
      c. Nursing Home