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Planning for Retirement as a Single Person

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https://www.kiplinger.com/article/retirement/T047-C000-S002-planning-for-retirement-as-a-single-person.html

kiplinger.com

Planning for Retirement as a Single Person
If you're unmarried and childless, you need special strategies for retirement saving, health care and estate planning-and a support network you can call on. By , Associate Editor Robin Zenger has saved diligently and lived within her means for her entire life.

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Build a team

Growing older without a spouse or adult children means you'll need to build support who can help with your finances, make medical decisions and prevent you from becoming isolated as you grow ol...

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Create an income safety net

Many singles don't have a strong enough backup plan to cover the costs of a major illness or other problems.

Ensure you have enough cash on hand to cover emergencies. F...

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Long-term disability policies

Group long-term disability policies offered by employers typically replace up to 60% of your income.

To ensure you have enough coverage, aim to bring your total coverage up to 80% o 90%...

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Paying for retirement

  • Try to save at least 15% of your paycheck for retirement.
  • If you're able to save more, open a Roth IRA. You'll pay taxes on your contributions now, but your earnings will a...

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Social Security

If you were married for more than a decade and then divorced or your spouse died, you may qualify for Social Security benefits based on his or her work history.

If you're in good health...

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Consider future care

If you don't have long-term-care insurance, a chronic illness could quickly drain your retirement funds.
Nearly 70% of seniors will eventually need some form of long-term care, and about 20%...

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Estate planning

Getting the right documents in place will make it easier when you become unable to manage your affairs.

  • Most childless singles find friends and family to carry out their wishes.
  • ...

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Housing options

  • Some single seniors can stay in their current homes, usually with structural changes. Even if your health is good, you may need someone to help you with household tasks or provide more expen...

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SIMILAR ARTICLES & IDEAS:

Uncertainty of Social Security and Pension Benefits

  • The aging population is causing fewer contributors.
  • More people are retiring due to increased longevity.
  • Corporate col...

Unforeseen Medical Expenses

Old age typically brings medical problems and increased healthcare expenses.

Living out your retirement years in comfort while also covering your medical expenses may turn out to be a burden too large to bear.

Estate Planning

Without a well-planned retirement nest egg, you may be forced to liquidate your assets in order to cover your expenses during your retirement years.

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Early Mistakes, Late Start & Future Hurdles.

Savings and investments should be part of a monthly budget even when young or just starting a career.

You cannot save enough if you are waiting until your late 30's before...

Myth vs. Reality in Retirement Planning

  • I’m not that old:  It’s not about NOW but saving for your old days when you can no longer work full time. 
  • I’ll wait for a lump sum is just an excuse to postpone planning or procrastinate.
  • Assumed Family/External Support: It’s better to be prepared for eventualities and have contingency funds in hand.
  • Financial Requirements Decrease: Medical costs increase with age. Inflation and other factors might also come into play.
  • I will not live that long or I won’t retire: People tend to live longer, but they will suffer from medical ailments.

Retirement Goals

To have a secure and financially independent retired life during your golden years with regular post retirement income, a corpus of savings/investments and a safe shelter or home.

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Smart retirement planning boils down to a few simple truths.

  • Time is on your side.  The earlier you start saving money, the more time you give compounding to work for you. 
  • Take risks when you're young.  Althoug...