The number of older Americans who identify as single has been growing in recent years. CNN reports that nearly 16 million people aged 65 and over lived alone in 2022, which is 3x the number of Americans that age who lived alone during the 1960s. And as baby boomers age, that number is expected to rise.
Of course, it's not just higher rates of divorce that have led to an uptick in the older senior population. Some people simply opt out of marriage and/or romantic partnerships to begin with. Others may be approaching retirement without a spouse, due to the death of their partners.
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While being single in retirement can be beneficial (think not having to accommodate another person's needs or schedule), it can also be financially tough. Here are a few challenges you might encounter if you're single in retirement.
1. Access to only one set of Social Security benefits
Married couples can play around with different Social Security filing strategies to maximize their benefits and optimize their cash flow. When you're single, though, you only have one set of benefits to look forward to -- your own. You can't file for one set of benefits early to bring in income and delay a second set for higher benefits like married couples can. So you'll need to claim Social Security strategically.
2. Only a single nest egg to tap
Dual-income couples commonly retire with more than one IRA or 401(k) plan to withdraw from. When you're single, you only have your own savings at your disposal. So if you don't manage to save well, you could end up struggling to cover your expenses -- especially if your monthly Social Security benefit is also on the smaller side.
3. No onsite caregiver
Health issues tend to rise with age. If you're part of a couple and need to be cared for, you have the benefit of having another person in your home to help you get around following an injury or cope with physical challenges related to illness or waning mobility. When you're single and live alone, finding that help can be harder. And unfortunately, you may have no choice but to pay for it, thereby straining your budget.
Prepare accordingly
Even though you're single in the years leading up to retirement, you may still meet someone to share your senior years with. But you can't bank on that happening. And you might just want to remain single.
But if you're fairly certain you'll be navigating retirement as a single person, you'll need to prepare carefully. One route you may want to consider is retiring on the later side. Doing so could make it possible to not only give your savings a nice boost, but also delay your Social Security filing for a higher monthly benefit for life.
You may also want to look into working part-time as a retiree to generate more income. Earnings aside, working could serve as a nice social outlet. And that may be something you're interested in if you live alone.
