Financial Planning Tips for Solo Agers

 I recently taught a new class called Financial Planning for Solo Agers. It was requested by several of my older adult students.

Below are eight key take-aways for people who are aging alone without a spouse, significant other, or children to help them navigate later life challenges:

Solo Ager Statistics- An estimated 28% of older adults are currently solo agers and the percentage increases annually. The percentage is even higher when factoring in people with adult children who are unwilling or unable to provide needed parental care.

 

Four Stages of Solo Aging- The stages are 1. Independence (generally self-sufficient), 2. Interdependence (in need of help with basic tasks), 3. Dependence (in dire need of help from others for activities of daily living), and 4. Crisis Management (dependent on health professionals and medical facilities). Not every solo ager goes through every stage.

 

Big Solo Ager Challenge- Finding or naming someone who can be available at a moment’s notice to provide care or manage your financial affairs or health care decisions is hard when none of your options are family members.

 

Healthy Habits- The goal is to stave off or at least postpone chronic diseases like cancer or diabetes. Think: nutritious food, no smoking, physical activity, regular screening exams, adequate sleep, vaccinations when needed, and no or limited alcohol use.

 

Technology Resources- Tech tools that can help solo agers stay connected to people who can help them in an emergency situation include wellness check-in services (solo agers check in daily or call check services contact them) and emergency alert devices.

 

Hired Services- Professionals and service providers that may be needed at some point include bonded daily money managers, geriatric care managers, taxis, Lyft, and Uber for rides, professional personal representatives and trustees (e.g., a bank trust department or an attorney), and patient advocates who help people navigate health care systems.

 

Housing Arrangements- If someone is “aging in place,” their existing home should be modified for safety (e.g., grab bars and no step entry). Many experts recommend that solo agers consider congregate living settings to build in socialization opportunities and well-being checks. Examples include assisted living facilities and continuing care retirement communities (CCRCs).

Trusted Proxies- It is very important for solo agers to prepare a will, living will, and durable power of attorney (POA) and to designate a health care proxy (as part of a living will) and POA agent to act on their behalf, if incapacitated. It is also wise to add trusted contact information to financial accounts. Account custodians will often ask for this.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.