Is it Possible for Singles to Build Savings?

A number of singles in their 20s and 30s tend to focus so much on establishing their careers that they forget completely about planning for retirement. However, the truth is that the sooner you start planning for this time of your life, the fewer financial worries you’ll have when reaching your 50s and 60s. Here are a few ways in which singles can build a decent retirement nest egg fund.

Consider an Additional Job

If the current cost of living is making it difficult for you to maximize your tax-deferred savings accounts or even build a healthy emergency fund, you may have to consider taking on a second job – even as a temporary option. This can provide you with a much-needed financial lifeline, especially if you’re struggling to repay consumer debts as well. After all, you definitely don’t want to be stressing about trying to repay any debt when the time comes to retire.

Save as Much as Realistically Possible

If you’re single, it’s strongly recommended that you save as much as permitted in any tax-deferred forms of savings account you may have each year. This may seem impossible initially, but keep in mind that you may not have financial support from a spouse or partner to help pay bills and other daily expenses. 

Now is also the time for you to start building a reasonably sized emergency fund, which should be anything from three to six months worth of expenses – again, you won’t be able to rely on the security of a partner’s income if you happen to become disabled or injured and not be able to work for an extended period of time. 

Give yourself Financial Protection

Single people tend to be at a higher risk of experiencing financial disaster if they become unable to work for any length of time due to job loss, injury, or disability. For instance, if you’re in your 40s and suddenly unable to work for any reason, it’s crucial that you have a financial plan in place that will help you cover living expenses until such time as you die. The best option, in this case, I some form of disability protection. 

When you purchase any form of disability protection, you must check the policy thoroughly to ensure that payouts will be able to cover you for as long as it will be needed. Keep in mind that many cheap policies will normally only payout for a predetermined period of time, so it’s strongly recommended that you enlist the help of a financial advisor before signing on the dotted line. 

Ensuring that your retirement will be as financially stress-free as possible need not make you feel overwhelmed, especially if you take the advice mentioned above into consideration and act upon it as soon as possible. If you would like to ensure that you’ll be able to enjoy your golden years as much as possible without worrying about money, contact our team today to schedule an appointment.