The Retirement Primer: 5 Tips for a Successful Single Retirement

Retirement is a major life event that requires decades of planning—and those planning on retiring alone have a few extra steps they’ll need to take. But all the planning—the more careful the better—will eventually be worth it.

Here are five tips for a successful single retirement.

1. Ensure you have adequate financial resources. Will you have enough when you finally leave the workforce? Experts at Fidelity suggest saving 10 times your annual income to retire at age 67. To find out, take stock of your retirement savings and all the income streams you expect to have in retirement, like retirement accounts, Social Security payments, and pension plans. If you don’t have sufficient retirement savings, you may want to sell some of your market-reliant investments into stable funding accounts so you can live off them during retirement. You may also consider a “phased retirement,” in which you take on some part-time work to continue earning and can keep contributing to your retirement accounts.
2. Create a budget. Establish a realistic budget for your retirement. Compare your monthly expenses against the income you calculated in Step 1, then make adjustments as necessary. A good rule of thumb is to review your budget once a year in retirement. As everything becomes more expensive and your retirement savings and income shrink, your priorities and spending habits will change. Examples:
• Healthcare costs typically increase as you age, so you’ll need to allocate more toward those expenses. Consider shopping around for other Medicare plans as your healthcare needs change.
• Cost-of-living increases (generally 3% per year) will dictate how much you can safely withdraw from your retirement accounts and continue living comfortably.
• During the early, more active years of your retirement, you may consider budgeting more toward travel and hobbies, and then taper off from there.
  
  
3. Designate an emergency contact. Choose a friend or relative to serve as your designated emergency contact. Draw up a medical power of attorney contract so they can legally make decisions on your behalf. Power of attorney offers peace of mind for your loved ones, knowing they can help make the tough decisions rather than a court-appointed conservator or guardian.
4. Build a strong social network. Actively seek out social opportunities in your community and attend local events and gatherings. Common interests and life circumstances with others can create a mutual bond that can turn into meaningful relationships. And no reason to wait until retirement to get started. The sooner you start forming these bonds, the stronger the network you’ll have when retirement comes knocking.
5. Pursue your interests and hobbies. In retirement, you’ll have to fill in a huge time gap previously occupied by your work. Time to pursue your interests and hobbies and try something new. Find purpose by getting involved in your community through volunteering or joining clubs. Stay active by walking or cycling with friends or learning to play pickleball. Continue a lifetime of learning by taking college courses, playing a musical instrument, or taking up painting. There’s so much you can do to pass the time in retirement.

Here are a few additional resources to help transition to a solo retirement:

• What No One Tells You About Retiring Alone
• 17 Powerful Tips for Retiring Alone (Or, If You Become a Solo Senior During Retirement)
• Embracing Solitude: The Soloist's Guide to a Fulfilling Retirement

Questions about investing for your retirement? Contact an LPL Advisor* with SELCO Investment & Retirement Services. They’ll be happy to help.

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* Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. SELCO Community Credit Union and SELCO Investment & Retirement Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using SELCO Investment & Retirement Services, and may also be employees of SELCO Community Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, SELCO Community Credit Union and SELCO Investment & Retirement Services. Securities and insurance offered through LPL or its affiliates are: