As more people are choosing to remain single or childfree, a growing number of older adults are finding themselves navigating retirement and aging on their own. These solo agers don’t have a spouse, adult children, or close family members to step in and manage finances or care decisions later in life.
According to the U.S. Census Bureau, about 27% of women and 21% of men ages 65 to 74 live alone. In the 75 and older age group, 43% of women and 24% of men live alone, reflecting the longer life expectancy of women.
Experts expect those numbers to rise as younger generations delay or forgo marriage and children. Being a solo ager can be liberating, but it also brings unique challenges when it comes to money management and planning for the future.
Here are a few smart financial moves solo agers can make to stay secure, independent, and prepared.
The unique financial circumstances of solo agers
Unlike older adults with built-in support networks, solo agers need to be proactive about planning. Without a spouse to share expenses or children to provide care, you may need:
- A larger financial cushion to pay for caregiving or assisted living services
- Trusted decision-makers outside of family to handle legal, medical, and financial responsibilities
- Well-organized financial records so someone can step in quickly if you become ill or incapacitated
Proactive planning helps preserve your independence as long as possible while reducing the risk of financial missteps or exploitation.
Smart money moves for solo agers
Here are a few proactive steps you can take now to ensure you’re ready for circumstances solo aging throws your way.
Decide who will step in when needed
Thinking about who will step in when you need help with financial decisions or medical decisions is important for everyone, but especially so when you don’t have close relatives to turn to.
You have three decisions to make:
- Who will be the executor for your estate?
- Who will be your financial power of attorney (POA) for financial and legal matters?
- Who will be your healthcare POA or health care proxy to make decisions about medical care and life-sustaining treatment if you’re unable to?
Choose carefully. This person should be trustworthy, financially responsible, and willing to take on the role. Talk with them in advance to ensure they understand your wishes and feel comfortable with the responsibility.
Make a housing plan
Think realistically about where you want to live if you can no longer manage your current home.
According to AARP, 87% of adults age 65+ want to stay in their current home and community as they age. But the unfortunate reality is that your physical health may not allow it as you grow older.
Your housing options might include downsizing, moving into an independent living community, living with extended family members, or considering assisted living. If you have the financial resources, you may be able to hire home health care aides, a geriatric care manager, and transportation providers to support you while aging alone. Having a plan in place now prevents rushed decisions later.
Secure your emergency fund
As a retiree (or someone approaching retirement), you probably already have more of your portfolio allocated to cash and conservative investments than younger people do. So in some ways, you already have a built-in emergency fund. Still, it’s important to make sure you’ve set aside enough readily accessible cash to cover the kinds of unexpected expenses that can disrupt your financial stability.
An emergency fund is simply a stash of money in a safe, liquid account, like a savings account or money market fund, that you can tap into quickly. This stash ensures you can cover sudden expenses without having to sell investments during a market downturn. For people in their 20s through 50s, most experts recommend three to six months of living expenses to guard against job loss. As a solo ager in retirement, you’re not facing that risk, but you still want to be prepared.
Instead of replacing lost income, your emergency fund should be sized to handle one-time or short-term costs, like a major home repair, car replacement, or an unexpected medical bill. Having cash on hand ensures you won’t need to make a large withdrawal from your retirement accounts when the market is down, which could lock in losses and reduce the longevity of your savings.
Think through the types of expenses you’re most likely to face, and set aside enough to cover them comfortably. The peace of mind that comes from knowing you can weather life’s surprises without derailing your long-term plan is invaluable.
Consider long-term care insurance
Long-term care, including in-home assistance, assisted living, or nursing home care, can be one of the biggest expenses in retirement. Unfortunately, traditional long-term care insurance is becoming increasingly rare. According to the Kaiser Family Foundation, only about 3–4% of Americans age 50 and older have a policy, and most insurance companies have stopped selling stand-alone coverage. The few that remain are often too expensive for many solo agers, with premiums that increase over time and coverage that may not fully match today’s costs.
Because of this, many people now turn to hybrid policies that combine life insurance with long-term care benefits. These policies allow you to access part of the life insurance benefit to pay for long-term care if you need it. If you never need care, your beneficiaries still receive the life insurance payout.
These plans aren’t perfect, and they’re often less generous than older stand-alone plans. Still, they provide an extra layer of protection without the “use it or lose it” concern that comes with traditional long-term care insurance.
As a solo ager, explore your options early, weigh the costs against your financial situation, and consider whether a hybrid policy fits your long-term plan. Even if you decide against insurance, setting aside funds earmarked for future care can help you avoid financial strain down the road.
Create your professional support team
Surround yourself with trusted advisors who can provide guidance and oversight:
- A financial advisor can help you invest wisely and prepare for retirement.
- Your attorney can handle estate planning, including drafting wills, trusts, and Power of Attorney documents.
- A tax advisor manages tax planning and minimizes liabilities.
- A daily money manager can help with paying bills, monitoring accounts, and organizing important paperwork.
Selecting and engaging these professionals early lets you build relationships before a crisis arises. If you wait until you urgently need someone to step in, you may no longer be able to legally sign the necessary advance directives. Establishing your team now ensures continuity, peace of mind, and protection. And remember, a daily money manager’s services can scale with you, starting with light support in organizing finances and expanding to full management as your needs change.
Organize your financial information
If someone needs to step in—temporarily or long-term—they’ll need quick access to your financial accounts, insurance policies, and legal documents. Keep everything organized and updated, ideally in both paper and digital form. Make sure your executor or POA knows where to find it.
Maintain healthy social circles
Financial planning is only one piece of the puzzle. Emotional and social well-being matter too. According to the Mayo Clinic Health System, strong support networks are as important to the health of older Americans as good nutrition and physical activity. A supportive network of friends, family, or community connections can reduce stress, improve confidence, and even lower the risk of depression and high blood pressure.
As a solo ager, building and maintaining connections takes intentional effort. Reach out regularly, volunteer, or join community groups or support groups, and stay connected to people who bring positivity into your life. If transportation is an issue, even virtual meetups can help you combat loneliness and support your mental health. These relationships provide both emotional support and practical help, ensuring you have a trusted circle to lean on as you age.
Start planning for successful solo aging today
Being a solo ager means you get to make decisions for yourself. But it also means you need to plan ahead with intention. By organizing your finances, appointing trusted decision-makers, and building a strong support system, you can protect your independence and give yourself peace of mind.
Firefly Financial Organizing specializes in helping people put systems in place for financial security and clarity. If you’re ready to plan for a secure future, reach out today. We’d be honored to help you shine a light on the path ahead.
