The rising tide of single retirees
For generations, retirement has been viewed as a journey taken as a couple. However, the demographic landscape of aging in the U.S. is undergoing a significant shift. More adults are entering retirement without a partner, due to a variety of factors including rising divorce rates, a declining marriage rate, and increased longevity, particularly for women. Understanding this trend is critical for proper retirement planning.
Breaking down the statistics by gender and marital status
When we ask, "what percentage of retirees are single?" the answer is more complex than a single number. The term "single" includes those who are widowed, divorced, or have never been married. Recent data from sources like the Administration for Community Living and the Pew Research Center offer a nuanced picture of this growing demographic.
-
Women vs. Men: In the 2023 Profile of Older Americans, the ACL found a considerable gender disparity. Approximately 47% of women aged 65 and older were married, compared to 68% of older men. This means a larger percentage of older women are navigating retirement as single individuals. For women aged 65 and older, widows made up 29% of the population, more than triple the number of widowers. This disparity is partly due to women's longer life expectancy.
-
Widowed Individuals: The proportion of older adults who are widowed has decreased over time but remains a significant portion of the single retiree population. For many, widowhood comes later in life, often requiring a substantial adjustment to their financial situation and social support network.
-
Divorced and Never-Married: Divorce rates among older Americans have been on the rise for decades. The percentage of divorced and separated individuals aged 65+ was 16% in 2023, up from just 5% in 1980. Meanwhile, the never-married population aged 65+ was 6.6% in 2022, a figure that is expected to continue increasing as younger generations enter retirement with a higher rate of lifelong singlehood.
Unique financial challenges for solo retirees
Financially preparing for retirement as a single person comes with distinct challenges. There is no partner to share costs, and a single income must cover all expenses. This lack of a financial safety net is a major concern.
-
Higher Per-Person Costs: While married couples can split housing, utility, and other household costs, a single person bears these expenses alone. As highlighted by Kiplinger, a single individual often faces a larger financial burden on a per-person basis, making it harder to save for retirement during their working years. This reality underscores the need for proactive and robust financial planning.
-
Tax Disadvantages: Single retirees often face a higher tax burden than their married counterparts who can file jointly. Income splitting strategies available to couples are not an option for solo retirees, meaning higher income amounts are taxed at a higher percentage.
-
Healthcare and Long-Term Care: Healthcare costs are a major expense in retirement, and a single person often needs to save more for potential long-term care needs. There is no spouse to step into a caregiving role, and the financial and logistical burden of long-term care can fall squarely on the individual. Purchasing long-term care insurance is a common strategy for mitigating this risk.
-
Estate Planning: Without a spouse as a default beneficiary, estate planning for single individuals requires careful consideration. Naming beneficiaries for assets and establishing power of attorney documents is critical to ensure one's wishes are followed without unnecessary legal complications for loved ones.
Addressing social and lifestyle aspects
Financial readiness is only one part of the retirement equation. For many single retirees, loneliness and a lack of social connection are significant concerns. The absence of a partner can lead to social isolation, a risk factor for both mental and physical health declines, according to the Centers for Disease Control and Prevention.
-
Building a Support Network: Proactively building and nurturing a strong social network is vital for solo retirees. This can involve reconnecting with old friends, joining community groups, taking classes, or volunteering. The emphasis shifts from a partner-centric social life to a broader, community-based one.
-
Finding the Right Housing: The housing needs of single retirees also differ. Some may prefer to downsize to a smaller home, while others may opt for a retirement community that offers built-in social opportunities and amenities. Cohousing, where individuals have private living spaces but share common areas and resources, is another option gaining traction.
Comparison of single vs. partnered retirement considerations
| Aspect | Single Retirees | Partnered Retirees |
|---|---|---|
| Financial Burden | All costs are borne by one individual; higher per-person expenses. | Costs are split, potentially leading to lower per-person expenses. |
| Financial Safety Net | No access to a partner's income or assets in an emergency. | Access to a partner's income, savings, and other assets for stability. |
| Social Support | Must proactively build a support network of friends, family, and community. | Often have a built-in support system through their spouse. |
| Caregiving | Rely on professional care, insurance, or family/friends for long-term care needs. | A spouse can serve as a primary caregiver, at least initially. |
| Estate Planning | Must create a detailed estate plan to designate beneficiaries and care directives. | Assets may transfer to the spouse automatically or with less complex planning. |
| Taxes | Cannot utilize the tax benefits of filing jointly; all income is taxed at single rates. | Can take advantage of tax benefits for married couples. |
Conclusion: Planning is paramount
While the percentage of single retirees is a growing number, it is not a monolithic group. The experience varies significantly based on gender, marital history, and, most importantly, proactive planning. A solo retirement can be liberating, filled with independence and personal growth. However, it requires a deliberate and thoughtful approach to financial, social, and healthcare planning to ensure security and well-being. By taking the time to understand the unique challenges and strategies involved, single retirees can confidently build a future that is not just financially sound but also socially vibrant and personally fulfilling. For additional resources on financial planning for a solo retirement, visit Kiplinger's insights on the topic at https://www.kiplinger.com/retirement/retiring-without-a-partner-how-singles-can-maximize-savings.
