YOUR FINANCES
Approximately 23 million Americans age 65 or older are single , divorced or widowed , according to the most recent data available from the U . S . Census Bureau . 1 That means there are many people in this country who are planning their retirement on their own , without the help of a spouse or partner .
If you are a part of this group — whether it is your choice or the result of unexpected circumstances — there are unique considerations you may need to keep in mind as you navigate the path to retirement on your own . The following tips can help you craft your retirement plan :
INDUSTRY INSIGHT
YOUR FINANCES
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Entering Retirement Solo ? Here are Tips for Managing Your Finances as You Grow Older
1 . Align your lifestyle with your savings . Retiring solo may mean you get to call the shots on how you want to spend your time . Whether it ’ s traveling , volunteering , visiting family , or working part time , think about how you want to fill your days — then consider how you ’ ll fund your new lifestyle .
2 . Plan for health care expenses . Decide how you ’ d like to handle health care expenses , including your possible need for longterm care . Depending on your situation , insurance coverage ( including Medicare , Medicaid and long-term care insurance ), health savings accounts and investment savings may be part of the solution .
3 . Update your estate plan . Review and make any necessary adjustments to your estate plan and beneficiaries on key accounts to ensure that they align with your wishes . Pick a trusted family member or friend to serve as your financial and health care proxy . An attorney can help you assign someone to make decisions for you in the event you can no longer act on your own .
4 . Consider your mortgage . If you have a mortgage on your current home , think about whether you ’ d like to pay it off before or during retirement . Consider your tax strategy , cash flow needs today and down the road , and whether you intend to downsize or move in retirement as you make your decision .
5 . For those who are divorced , there are other items to consider . If you were previously married , additional considerations apply as you think about your retirement plans :
• If you receive alimony payments , be aware that the amount you receive may be modified — or even end — once your ex-spouse reaches retirement age . On the other hand , if you are the one who makes alimony payments , make sure you understand how much you ’ re obligated to continue paying in retirement . The terms were likely spelled out in your divorce settlement .
• You may also consider claiming Social Security benefits based on the earnings of your ex-spouse . You can do so as early as age 62 . However , the longer you delay claiming benefits ( up to your full retirement age ), the larger your monthly benefit will be . Your claim has no impact on the amount of your ex-spouse ’ s Social Security benefits .
6 . For widows and widowers , changes to your plans for retirement may be needed . Retiring single is likely different than what you envisioned during your married years , and you may still be going through an adjustment period . The following tips can help you as you reframe your retirement years :
• If you were not closely involved in managing household finances , enlist a trusted family member or financial professional to help review your current situation . Track down passwords to all your accounts and make an updated plan to address your current needs and retirement goals .
• If you collected an insurance settlement following the passing of your spouse , focus on investing that money effectively to help generate income during your retirement . You can also claim Social Security survivor benefits if you are at least age 60 . You can decide later to begin collecting benefits based on your own work record .
How you decide to spend your retirement days is personal , so your retirement plan should be too . Turn to a tax professional and financial advisor for guidance on what steps to take next .
This Industry Insight was written by Jonathan D . Martin .
1 “ America ’ s Families and Living Arrangements : 2022 – Table A1 ,” United States Census Bureau . Last Revised – November 21 , 2022 . . census . gov / data / tables / 2022 / demo / families / cps-2022 . html
Jonathan D . Martin is a financial advisor with Ameriprise Financial Services , LLC , in Bethel Park . He specializes in financial planning and asset management strategies . Contact Jonathan ’ s office at 412.831.6240 extension 202 , located at 88 Fort Couch Road , Suite 210 , Pittsburgh , PA 15241 , or visit his website at ameripriseadvisors . com / jonathan . d . martin . Jonathan is licensed / registered to do business with U . S . residents only in the states of PA , DC , HI , TX , OH , WV , AZ , CA , FL , IL , IN , NC , NJ , SC and VA .
Ameriprise Financial , Inc . and its affiliates do not offer tax or legal advice . Consumers should consult with their tax advisor or attorney regarding their specific situation .
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Investment advisory products and services are made available through Ameriprise Financial Services , LLC , a registered investment adviser . Ameriprise Financial Services , LLC . Member FINRA and SIPC . © 2023 Ameriprise Financial , Inc . All rights reserved .
Meet your future with confidence .
Jonathan D . Martin Financial Advisor
412.831.6240 88 Fort Couch Rd Pittsburgh , PA 15241 jonathan . d . marting @ ampf . com ameripriseadvisors . com / jonathan . d . martin
Ameriprise Financial Services , LLC . Member FINRA and SIPC . © 2023 Ameriprise Financial , Inc .
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