There are benefits to being single when you retire. Since you’re alone, you can spend your time doing whatever you want. You don’t need to justify yourself, argue, or compromise.
However, retiring single can sound more challenging than retiring as a couple. However, the right plan can ensure a comfortable and enjoyable retirement.
These eight single retirement planning tips will help you prepare for this important life stage.
Tip #1: Determine what you want out of your retirement
To be able to plan your retirement, you first need to be clear on what you want out of it. What would your dream retirement be like?
Ask yourself where you would want to live and what lifestyle interests you. You will need to save a lot more money if you want to live in a mansion than if you want to live in a senior residence.
You should also think about the passions you might want to pursue and whether you would like to travel. Perhaps adopting a pet would be a good idea to help you stay active and avoid loneliness.
Write down what your perfect retirement would be like. It’s always easier to achieve goals if you know what these goals are.
Tip #2: Write down all your financial goals
Of course, discussing single retirement planning tips without talking about money is impossible.
Just think about your ideal retirement to better understand how much money you need to save for your retirement. This will help you define your financial goals.
Besides saving money, some of your most important objectives before your retirement should be to pay off any debt and work toward improving your credit score.
Tip #3: Be sure to save money for a nice nest egg
Remember that it’s never too early to start saving money for your retirement. Before you get started, however, be sure you have a nest egg.
Why? Because you never know when you might need to spend money to get your car fixed or to face an emergency.
An emergency fund will allow you to pay for unexpected expenses without using your retirement fund. And this will make it much easier for you to save enough money for a comfortable retirement.
Tip #4: Figure out how much you should earn during retirement
Just because you stop working doesn’t mean you will stop earning money. As part of your retirement planning, you should figure out how much money you should earn each month after you retire.
Consider any Tax Free Savings Account you might have, your pensions and investments.
You might also be able to access benefits and tax credits that will provide you with an additional source of income.
Tip #5: Make a retirement budget and consider different options
If you currently have a budget, you know how to do this. Compare the expenses you expect to have during your retirement with the income you expect to be able to rely on.
Ideally, your income should be higher than your expenses.
If this isn’t the case, you have two options. You can either find ways to cut back on your retirement expenses or find a way to earn more money and save more for your retirement.
Tip #6: Consider investing in annuities and other safe ventures
To boost your income, you could buy annuities to help boost your retirement income. An annuity is a financial product that a life insurance company usually sells. It allows you to regularly receive payments when you retire, which can help you live more comfortably.
Plus, long before you retire, a financial advisor can help you figure out other investments that will allow you to have more money to fully enjoy your retirement years.
Tip #7: Think about your estate plan long in advance
If you have children, planning your estate long in advance is even more important. This will allow you to ensure your assets will be distributed as you have decided after passing.
But your estate plan is not just about your will. It will also specify your funeral arrangements and who should take of your children if they are still young when you pass.
Tip #8: Designate someone you trust to make decisions for you
Finally, since you will be single, you won’t be able to rely on your partner to take care of you if you cannot care for yourself.
As you plan for retirement, you should designate someone you trust to make health care and financial decisions if you can’t do it anymore.
This will help you keep peace of mind during your retirement years, knowing your last wishes will be fulfilled no matter what happens.