I’m single with no kids. How do I secure a safe retirement?
If you don’t have a spouse or children to rely on later in life, whether single or divorced, retirement planning takes on a different level of responsibility. You are your own safety net.
Here are five realities to consider:
1. Retirement is expensive. Illness in retirement is even more so. The cost of Home Care, Assisted Living, and Nursing Homes continues to rise at an alarming pace. Long Term Care planning is just as important as saving for retirement itself. Yet sadly, many financial plans leave it out entirely (especially if the advisor doesn’t offer solutions in this area.)
2. The odds are not in our favor. Roughly 70% of people over age 65 will need some form of Long Term Care. That makes this less of a “maybe” and more of a “when and how.”
3. Financial independence is your first line of defense. Focus on your career, build savings, and create stability. Long Term Care planning should be viewed as part of diversification alongside IRAs, 401(k)s, life insurance, and emergency funds. It’s about protecting what you’ve built, not just growing it.
4. Plan with a Single / No-Kids mindset. This simply means designing a strategy that doesn’t assume family will step in to help manage care or expenses later. If your situation changes someday, great! You can always adjust the plan.
5. Medicare and Medicaid are not good options. Most people aren't aware that Medicare will not cover Long Term Care for more than 100 days. Its designed for healthcare - not personal care. And Medicaid can only be used once all your savings are depleted. They also control the level of care and the location.
6. A modern solution many people don’t realize exists: Using certain Life Insurance policies to provide Long Term Care benefits is one of the most effective and popular strategies today. When structured properly, the death benefit can be accessed for your Long Term Care while you’re alive. It’s efficient, flexible, and increasingly where the industry is headed.
Bottom line: Being single with no kids doesn’t mean facing retirement alone. It means planning wisely and proactively. A thoughtful Long Term Care strategy can be the difference between independence and financial stress later in life.
If this topic resonates, it’s worth having a conversation now, while options are still affordable and flexible.