Retirement advice for solo seniors
As her parents grew older, Carol Marak saw how they relied on their three children for care and knew that wouldn’t be an option for her. Without a partner or children, she would have to build a different future for herself.
Marak, 69, of Dallas, decided she had to learn as much as possible about how to age without close relatives to help. As one prong of that effort, in 2016 she started the private Facebook group Elder Orphans. It now has close to 10,000 members who offer each other advice, resources and sometimes a shoulder to lean on. “It just keeps growing,” Marak said.
The number of solo seniors, as many prefer to be called, keeps growing. Here are some key financial considerations for them:
Crunch the numbers. Will you savings be enough to generate the retirement income you’ll need? Start by adding up your retirement savings and then figure out what your expenses likely will be in retirement. A certified financial planner can help you determine those numbers or you can use one of the many online retirement calculators that are available for free from banks and investment firms.
Consider your insurance needs. For example, long-term care insurance could be helpful “and is something I tend to talk about more with clients without spouses or children,” said Jessica Howe, a CFP in Portland, Oregon But because long-term care insurance becomes more expensive as you get older — or sometimes is impossible to buy after a certain age — you’ll want to purchase it in your 50s and early 60s. Self-insuring is another option.
Disability insurance can be even more important than life insurance for singles without immediate families. “If no one is depending on them, dying isn’t going to leave anyone in the lurch,” Howe said. “But if they become disabled in the height of their earning years, they will still have to support themselves.”
Get legal documents. Financial and legal directives, such as powers of attorney and health care proxies, are important for designating someone to carry out financial and medical decisions for you if you become incapacitated. “These legal documents — which are critical for anyone, but especially for those who don’t have a family advocating for them — are your voice and allow you to make decisions all the way up to the end,” said gerontologist Mary Jo Saavedra.
Howe tells her clients that if a relative or friend is unavailable to serve as a financial power of attorney, a professional fiduciary, such as an accountant, lawyer or trust company official, might be a good option.
Determining who will speak for you medically can be even trickier. The first and most basic step is to fill out an advance directive outlining what sort of life-sustaining treatments you do or don’t want. The directive should be easily accessible for your doctors and anyone you’ve chosen to be involved in your health care.
Everyone also needs a health care proxy or surrogate, although finding someone you trust to carry out your wishes can be tough. Saavedra recommends checking fivewishes.org for examples of how to think about and discuss your future health care choices with a potential health surrogate. If possible, name a second person as a backup surrogate.