Retirement planning for singles
There are two sides to every coin. Some may see single life in retirement as being more carefree, but others may have a sense of insecurity. Singles can be at an advantage if they do not have others to support, but they could also be disadvantaged as there will be no one to support them and share their burden.
Tips from financial planners
Life is like a long ride. On your journey, someone comes by to keep you company, while some others get off and say goodbye to you. No one can tell if anyone will accompany you at the end of your journey.
No matter if you are single or attached, it is still important to plan early, have sufficient savings, and take out protection for a retired life that could potentially last for over 20 years. For singles such as Theresa, they should consider the following.
Supporting aging parents
People are living longer these days. Some retirees may still need to support their aging parents. For singles, supporting the ever increasing medical expenses for themselves and their parents alone poses a great challenge. Take the cost of treating cancer in a private hospital as an example, the medical cost can be up to hundreds of thousands of dollars, without even taking into consideration medical inflation usually outpaces general inflation. To avoid falling into such financial difficulties, you should take up appropriate medical and life insurance for yourself and your aging parents. Paying a small sum to insure against large medical expenses in the future is one way to protect yourself and your parents.
Life in later years
Lack of support and care is one of the concern for singles, especially when they are incapable of taking care of themselves in their later years. Make adequate healthcare arrangements as early as possible to protect yourself in later years. For example, seeking support from family and friends, or considering options like an elderly care centre if you cannot find anyone to be your caretaker.
Dementia is a common disease among the elderly. As dementia patients require assistance in everyday living and finances, make early arrangements, for example, by setting up an Enduring Power of Attorney to give ourselves better protection and peace of mind.
If you have specific preferences on your estate and after-death arrangements, such as donating your estate or giving it to a certain friend or family member, you can outline your intentions by making a will. This way, you can ensure that your "final instructions" can be carried out.
29 March 2018