5 Retirement Planning Tips for Solo Agers

Envision your retirement lifestyle

Picture your retirement and consider “what you are going to do, who you are going to be with, how you are going to spend your time and how you are going to create purpose and meaning in your life,” says Sara Zeff Geber, author of Essential Retirement Planning for Solo Agers.

For many solo agers, retirement is centered around hobbies, travel, spending time with extended family or volunteering. Envisioning yours can help you define the life you want to lead after you stop working and figure out how you’ll pay for it. “You need to have a plan for what you’re retiring to rather than what you’re retiring from,” Zigmont says.

Decide if you want to leave money to others

For solo agers, deciding whether to leave money to relatives, friends or charitable organizations when you die can help shape your retirement timeline. It can also help you craft an estate plan that ensures your assets pass to your intended heirs.

You should also check all your financial accounts to make sure your beneficiary selections are up to date. If you’re divorced, for example, your 401(k) plan might go to your ex-spouse if they’re still the beneficiary on the account.

Pay close attention to long-term care

A majority of Americans reaching age 65 today will need significant long-term care during their remaining years, according to federal health data, but that probability is often overlooked in retirement planning, says Geber. For solo agers who lack family support, factoring in the cost of long-term care is essential.

“Everybody thinks that they’re going to spend a wonderful day on the golf course or the pickleball court, have a great dinner and then die in their sleep at night,” she says, but for many people, retirement is “a rockier, more expensive road.”

A long-term care plan may entail saving to self-fund care or purchasing long-term care insurance. If your employer offers long-term care benefits, take the time to learn more about them. Nearly a quarter of benefits-eligible workers say their company offers long-term care insurance, but only 9 percent enroll, according to a 2024 survey by the Employee Benefit Research Institute.

Get your legal documents in order

Some solo agers struggle to decide whom to appoint as their health care surrogate or financial power of attorney. But without these designations, hospitals, courts or government agencies might make medical or financial decisions on your behalf, and their choices may not reflect your wishes.

Consider having trusted friends or extended family members take on these roles, says Charles Sachs, chief investment officer at Imperio Wealth Advisors in Coral Gables, Florida. If you don’t have people you want to designate, you could hire a professional fiduciary or trustees to serve in these roles.

Here are four key estate planning documents for solo agers:

Medical or health care power of attorney. This designation, also known as a health care surrogate or health care proxy, is the person whom you want to make medical decisions for you if you are unable to do so.

Living will. Like a medical power of attorney, this document is usually part of an advance directive that spells out your wishes for medical care if you can’t communicate them yourself, such as whether you want to receive life-sustaining treatments.

Financial power of attorney. This enables someone to handle money matters, like paying bills or dealing with insurers, if you cannot. 

Last will and testament. This determines who will inherit your assets when you die. It also lets you name an executor to handle your estate; without a will, a judge will appoint an administrator to determine who gets your assets, such as a next of kin. Distribution rules vary from state to state.