Retirement is a milestone that everyone looks forward to. For years, we have pictured retirement as the time when we finally get to bow out of the workforce and enjoy all that we have established for ourselves and our family. However, that picture seems to change with every year that passes.
People are now pushing back their retirement and choosing to stay longer in the workforce to earn more money. We have 60-year-olds still paying for education loans and 40-year-olds struggling to provide for their children and their parents. The elderly are outliving their savings, and this raises the urgency among younger Americans to seek out affordable yet comprehensive coverage, such as long term care insurance, for their own futures.
Flying Solo
Nowadays, more and more people are choosing to pursue other options instead of getting married and settling down. Society has shifted to viewing marriage as a necessity to seeing it as an option—it is both for you or it is not, and that is absolutely fine. According to the United States Census Bureau’s America’s Families and Living Arrangements, 107 million Americans are unmarried, and 18 million of these people are in their 65 and older.
People have varying reasons for choosing the single life, but one thing remains constant: this choice has a significant effect on their retirement.
Single people cannot rely on a spouse’s income as an additional source of retirement income, and they do not have the extra hand of a spouse’s Social Security benefits. Unlike married couples with children, they are less likely to people to rely on when they need assistance in old age.
In planning for retirement, single women often draw the shorter end of the stick. Women often find themselves at a disadvantage because they tend to earn less money as a result of gender gaps in the workplace, take more time away from work to care for family, and live longer than men. On top of that, insurances often charge women more because of longevity.
Retirement savings, in general, is already low in the United States, but it is even lower for single people. In a study done by the Economic Policy Institute, they discovered that single individuals are less prepared for retirement than those who are married. What makes everything more alarming is that single individuals, male and female, age 56 to 61 have no savings despite being so close to retirement while those who do have money tucked away do not have nearly enough.
Here’s What You Should Do
- Make a Habit Out of Saving
One of the most basic tasks in preparing for retirement is to save money. Understandably, it is not as easy as it seems, especially in today’s world where people are faced with massive costs of living and a ton of debt. However, this is one of the main tasks that no one should procrastinate on, more so for those who do not have a partner to rely on for an extra hand in the future.
Ideally, people in their 20s ought to set aside 10-15% of their income for retirement savings. As you go along, try increasing the percentage if it is possible.
- Thoroughly Plan for Long Term Care Needs
Long term care expenses have been reaching new heights in the United States. At present, so many of the older generations are struggling to find the means to fund the care that they need. Many of them end up relying on their children, family members, or close friends to provide the assistance that they need. As you can see, this could potentially end up disastrous for the care providers. While some can juggle their own lives and the demands of caregiving effectively, so many Americans find themselves in trouble, financially, mentally, emotionally, and physically as they struggle to cope with their care responsibilities.
The situation gets more complicated when the individual is single or unmarried. Unlike those with children or spouses to come to their aid, single people have to look elsewhere for the help. If they choose to self-insure, single individuals also have to gather the funds themselves. While long term care insurance offers a good and secure plan, people often delay learning about this option until it is too late.
- Create a Financial Safety Net
It is no secret that so many Americans struggle to keep up with financial commitments, but it cannot be stressed enough how important it is to have an emergency fund ready to cover the rainy days.
Emergency funds—ideally amounting to six months worth of income—will keep individuals afloat when the going gets tough. Bear in mind that retirement savings ought to be different from emergency funds.
- It Is Not All About the Money
Family does not always consist of a husband and a wife and their children. Sometimes, family are those around you, providing the support and love that you need. Money and investments are necessary, but humans also need a good support group to be truly happy. From neighbors, friends, relatives, and even animals, surrounding yourself with those who provide positive energy and people you can exchange ideas with can also help your wellbeing. So while retirement planning might revolve around numbers, investments, and savings, do not forget that maintaining healthy relationships can also help during those decades.
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