Planning for a “solo retirement” requires careful consideration of your financial situation and potential risks. Beck & Lenox Estate Planning and Elder Law helps clients navigate this new “normal” and finds that older women are usually in the more vulnerable position when this happens.
Working with a financial planner can help you create a retirement plan that considers these factors and enables you to achieve financial security during your retirement years as a solo ager, says Go Banking Rates’ recent article entitled, “Why Every Woman Needs To Plan for a ‘Second Retirement.’”
Let’s discuss the steps:
Review your retirement plan: If you have a plan in place, make sure it considers your current financial situation and goals. These may differ from the plan you had together as a couple. If you don’t have a plan, consider creating one with a financial planner.
Reassess your expenses: With a change in circumstances, such as the death of a spouse, your expenses may change. Look at your budget to reflect your current situation and adjust as needed.
Consider your income sources: Review your sources of income, such as Social Security, pensions, annuities, and retirement accounts. See if you need to adjust your budget or explore additional sources of income, like perhaps some part-time work.
Review your insurance coverage: This includes Medicare, Medigap, supplemental insurance and long-term care insurance (LTCI). Determine if your coverage meets your needs and if changes are necessary. Continue to pay your LTCI premiums if you are an LTCI policyholder.
Plan for long-term care: Long-term care can be a major expense during retirement. As a result, it’s essential to plan for it. Consider your options, such as in-home care, assisted living and nursing home care, and determine how you’ll pay for them.
Stay involved and connected: Maintaining social connections and staying active can help you stay mentally and physically healthy during retirement. Think about joining a community group, volunteering, or pursuing hobbies and interests.
Have a Plan B: Have a backup plan in case of unexpected events, like a health crisis, stock market downturn, or family crisis. That plan may include having an emergency fund or exploring insurance options.
If you are planning for a solo retirement, know that Beck & Lenox is here to help you. Current clients can call our office directly and request a free consultation with one of our attorneys. If you are a prospective client, click here to schedule a free phone consultation.
Reference: Go Banking Rates (May 1, 2023) “Why Every Woman Needs To Plan for a ‘Second Retirement’”