There isn’t a wealth of information on retiring single. However, it’s not uncommon to enter retirement on your own for a variety of reasons. The reality is that single people don’t have as many planning options as couples, but there are some options.

We look at how to build your retirement savings as a single person (Hint: Time is your friend). We also suggest making sure you have social support and connection outside of work, as well as a strong sense of purpose to carry you through your retirement years. In this episode, we examine many of the common issues that single people face in retirement and look at some solutions for retirement planning when you’re going it solo.

What You’ll Learn in Today’s Episode:

• Save early and save often.

• Pay off your mortgage as you’re approaching retirement and redirect it to your retirement savings.

• Look for ways to create alternate revenue streams.

• Ideas for traveling solo in retirement.

• Part-time work.

• Strong social networks.

• Know your purpose.

• Increase your financial planning knowledge by working with a certified financial planner.

Ideas Worth Sharing:

• “Save when you have the opportunity. If you’re listening to this and you’re still away from retirement, you want to make sure you’re saving early to get your money working for you. Time is your friend.”

• “It’s all about time and getting your money working for you because if you can start earlier, you don’t have to put as much away. It’s a snowball effect. You start with small amounts that start to build up and compound, like the interest from your investments that should then further build the nest egg up to what you need.”

• “When people hear purpose, they feel like they need to choose a purpose that’s going to carry them through their life and be the end all be all. That’s not really what we mean when we talk about purpose. What we mean is something that you can get excited about. Something that’s helping you grow but it doesn’t have to be permanent.”

• How are you getting that social interaction when you’re not working anymore? A lot of people who are single are getting that social interaction while they’re at work. If suddenly you don’t have all your work friends because they’re still working and you’re not anymore, you want to think about that.”

Resources In Today’s Episode:

Joseph Curry

Lindsay Wilson

“Going it alone: retirement for singles” David Aston, MoneySense

“Women and Retirement: How to Retire on Your Own Terms” Paulette Filion and Judy Paradi, Financial Planning for Canadians

“Four ways to prevent loneliness from wrecking your retirement” by Chris Taylor, Reuters

Ep # 16: Living a Passion-Driven and Authentic Life with Scott Armstrong

Ep # 24: The Curated Retirement, Interview with Retirement Coach Tammy Vigue

Retiring When You’re Single

There isn’t a wealth of information on how to retire as a single person. However, it’s not uncommon to enter retirement on your own for a variety of reasons. The reality is that single people don’t have as many planning options as couples, but there are some options.

We look at how to build your retirement savings as a single person (Hint: Time is your friend). We also suggest making sure you have social support and connection outside of work, as well as a strong sense of purpose to carry you through your retirement years. In this episode, we examine many of the common issues that single people face in retirement and look at some solutions for retirement planning when you’re going it solo.

Differences: Single vs Coupled  

One of the major differences for someone retiring single as opposed to in a couple is income splitting. Couples, generally, look at how they can split income like pension splitting or CPP sharing. When you’re single, you’re bringing in all the income. Typically, single retirees are in a higher income bracket. Not only do they need more money to support all the things going on their lives, they have to pay more tax.

Single people who are entering retirement were not always necessarily single. They may have children as well and be single parents. They may be carrying the brunt of the child-rearing or shouldering all the mortgage payments. Not everyone has the opportunity to have extra cash flow when these factors are a consideration.

Lifestyle

Solo people in retirement may face a lack of social engagement. They may also need to consider a purpose beyond their career. Some single people may derive their purpose through their work and retirement can mean letting this go and reconsidering their purpose.

Financial Strategies for Being Single in Retirement

There are a couple of strategies for single people to consider. Firstly, look at saving when the opportunity arises. Save early and save often and get your money working for you. Time is your friend.

It’s all about time and getting your money to work for you. Starting with small amounts can begin to build your wealth and create the nest egg that you need.

Secondly, look at paying off your mortgage as you’re approaching retirement. That will free up cash flow. Redirect this cash flow to your retirement savings.

Other opportunities include looking for alternate revenue streams. People can look at renting a room in their house or turning their basement into an apartment to make money from a rental property. These alternate revenue streams can help with additional costs you may be taking on by paying a mortgage on your own.

Options for travel can often favor couples as well. However, looking for a travel companion or group tours can be financially and socially advantageous.

Retirement is often work-optional and looking for part-time work can bring more than just financial opportunity. It’s a chance to find purpose and connection as well as help with additional expenses.

Purpose

Having a successful and fulfilling retirement is not just about having enough money in the bank account. Typically we want to have money and financial freedom to live our best life but having a strong sense of purpose can add to our overall well-being in retirement. If you’re a single person who has an identity built on your career, it’s time to think about what you’re purpose looks like beyond your career, even beyond retirement.

When you hear purpose, you may feel like you need to choose something that will carry you through your whole life and be the end all, be all. But that’s not what we really mean when we talk about purpose. What we mean is something that you can get excited about, something that will help you grow and it doesn’t have to be permanent. Make sure you’re thinking about things outside of money.

Connection

Beyond purpose is a sense of social connection. Who are you spending time with, how are you getting that much needed social interaction? Many single people get their social interaction while they’re at work. If all of a sudden you don’t have your work friends because they’re still working and you’re not, you will want to consider where you will get your sense of social connection. There are options like hobbies and interests. Moving to a retirement community where there are different events to participate in. Volunteer work is another great option.

Single Women & Retirement

Single women can experience an extra challenge when looking at retiring solo. There can be a disadvantage from an economic standpoint where women, generally, make less money than men. There may be women who are divorced, widowed, took care of the household and children and gave up their careers. Their male counterparts may have taken care of finances. They can be at a disadvantage from a knowledge standpoint as well.

Getting Help: The Ultimate Strategy

Retirement is an exciting time regardless of your marital status. That’s why it’s important to get help and there is good help available. Ideally, a certified financial planner. With good planning and assistance, a fulfilling retirement is completely within reach.

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