There is a general misconception that a single person who is into retirement has an easier and much more comfortable life than a retired couple. This is not always true. A single person--either someone who has never married, divorced or widowed--has the disadvantage of facing financial decisions and challenges on his own, compared with retired couples with dual incomes.
Many singles especially when they’re young don’t save as much as they should for retirement; they spend more on things like entertainment, travel, cars and non-basic things. This is because they have more disposable income than married couples, especially those with children. They are less concerned in buying a home or investing for their financial future. If they do entertain this idea, it is usually later when they begin to realize they are not getting any younger. They then begin to set goals. This is self-defeating because the benefits of financial investment are usually reaped after some time. Instead of thinking, "I'm still young, why worry saving", they should think "I'm still young, the earlier I save, the less I worry later."
Singles should learn the basics of good money management and practice this skill as much as they can. Women especially should educate themselves on the basics of good money management in the event of divorce, disability or demise of their spouse. Many widows who suddenly find themselves alone fall prey to investment scammers and well-meaning relatives and friends who offer financial advice that may not work out in the long run.
It is crucial that a single person save as much as he can in his productive years so that in the event of inability to work, there is money to tide him over. Disability insurance, if he has one, will greatly help bridge the money gap in this event, along with health insurance in case of sickness. Even if a retired single person receives a pension, this is always less than what it used to be in pre-retirement, and for many, the amount may only be enough for the necessities of life, or maybe even less. If one can afford it, long-term care insurance should also be included in a single person’s arsenal to cover nursing home or home care costs.
A single person without dependents who is contemplating retirement may not need life insurance, but it is essential if he still has minor children. It would be ideal if the ex-spouse who is helping to support the children has life insurance as well. It is prudent to have a will to establish a trust and appoint a guardian for the children. A trustworthy friend or relative can be authorized to serve as trustee, preferably with a professional financial adviser in case the trustee is unable to carry out his responsibility or becomes untrustworthy. It is likewise prudent for a single person to authorize a qualified person to make medical and financial decisions on his behalf in case of physical or mental incapacitation.
Quote for today:
"You can be young without money but you can’t be old without it."
- Tennessee Williams, playwright
Many singles especially when they’re young don’t save as much as they should for retirement; they spend more on things like entertainment, travel, cars and non-basic things. This is because they have more disposable income than married couples, especially those with children. They are less concerned in buying a home or investing for their financial future. If they do entertain this idea, it is usually later when they begin to realize they are not getting any younger. They then begin to set goals. This is self-defeating because the benefits of financial investment are usually reaped after some time. Instead of thinking, "I'm still young, why worry saving", they should think "I'm still young, the earlier I save, the less I worry later."
Singles should learn the basics of good money management and practice this skill as much as they can. Women especially should educate themselves on the basics of good money management in the event of divorce, disability or demise of their spouse. Many widows who suddenly find themselves alone fall prey to investment scammers and well-meaning relatives and friends who offer financial advice that may not work out in the long run.
It is crucial that a single person save as much as he can in his productive years so that in the event of inability to work, there is money to tide him over. Disability insurance, if he has one, will greatly help bridge the money gap in this event, along with health insurance in case of sickness. Even if a retired single person receives a pension, this is always less than what it used to be in pre-retirement, and for many, the amount may only be enough for the necessities of life, or maybe even less. If one can afford it, long-term care insurance should also be included in a single person’s arsenal to cover nursing home or home care costs.
A single person without dependents who is contemplating retirement may not need life insurance, but it is essential if he still has minor children. It would be ideal if the ex-spouse who is helping to support the children has life insurance as well. It is prudent to have a will to establish a trust and appoint a guardian for the children. A trustworthy friend or relative can be authorized to serve as trustee, preferably with a professional financial adviser in case the trustee is unable to carry out his responsibility or becomes untrustworthy. It is likewise prudent for a single person to authorize a qualified person to make medical and financial decisions on his behalf in case of physical or mental incapacitation.
Quote for today:
"You can be young without money but you can’t be old without it."
- Tennessee Williams, playwright
