Can Singles Retire Successfully?
Several singles in their 20s and 30s tend to focus mainly on building their careers and lives that they don’t spare a thought for their retirement. However, the sooner you start planning for your golden years, the less time you’ll need to spend worrying about whether you’ll be able to relax a little after you retire or not.
As a single, there are steps you should take as soon as possible to prepare for this time of your life:
Start Saving as Much as Possible
One of the best steps you can take, as a single is to start saving as much as is allowed in your tax-deferred accounts each year. This may sound like a drastic move, but it’s important to keep in mind that you won’t have financial assistance from a spouse to help cover bills such as a mortgage, utilities and various other expenses.
It’s also crucial that you start building an emergency fund consisting of between three and six months of expenses because, again, you unfortunately don’t have the security of a partner’s savings or income if you are unable to work for an extended period of time for any reason.
Consider Creating a Second Income Stream
If you’ve noticed that you’re struggling to max out your tax-deferred accounts every year or there’s just not enough money to start building your emergency fund, it’s a good idea to think about taking on a second job temporarily – even if it’s part-time.
Taking on a temporary second job could be a financial lifesaver, especially if you have outstanding debts that need to be paid before retiring. After all, you wouldn’t want to be worrying about debt after you’ve stopped working and are living on limited income.
Financial Protection is Essential
As a single, you’re at more risk of financial ruin if you suddenly become disabled or too ill to work. For instance, If you had to find yourself in this situation in your 40s, you’d need to have some form of financial safeguard in place to be able to look after yourself through to your 70s or even 80s in some cases.
When purchasing any form of disability protection, it’s crucial to confirm that payouts will actually cover you for as long as is necessary because several of the cheaper policies in this category will often only pay out for a limited period of time. As such, it’s strongly recommended that you work alongside a qualified financial advisor when searching for this type of financial protection.
If you’re single, planning for your golden years need not be an overwhelming process – especially if you decide to take the above-mentioned steps as soon as possible. Spending wisely and investing appropriately while you’re still working will go a long way in helping to ensure that you’ll be able to enjoy retirement as much as you should.
Get in touch with our team of qualified and experienced financial advisors today to learn more about retiring successfully as a single.