Most of us dream of a safe and financially secure retirement, and having a solid retirement planning strategy goes a long way in achieving this goal. Unfortunately, single women face considerable retirement planning challenges as they are required to handle all financial decisions by themselves. And considering how most women above the age of 65 are single (Source:, they need to learn as much as they can to make the best use of their social and financial resources. Retirees and pre-retirees must realize that their time is limited, and even the smallest mistake can have serious consequences later on. If you are a single woman, consider following the retirement planning tips given below:

1.Focus on Your Health

According to a research by Fidelity, the average 65-year-old couple must shell out $260,000 during retirement on health care requirements like deductibles, premiums, and co-pays. What’s worse, this figure does not include long-term care expenses, which can also be a sizeable amount. Even though single women are not part of a couple, they too must bear considerable medical expenses as they grow older. Moreover, without the support and care of a spouse, single women often become reliant on in-home caregivers and healthcare professionals. So, you must devise a strategy that helps you pay for the kind of care you want.

Also, focus on staying healthy. Maintain a balanced diet and exercise regularly. Remember, the fitter you are, the better you can resist expensive and disabling diseases.

Now, there are a lot of women who prioritize the well-being of their children and aging parents before their own. And that actually ends up hurting them in the long run. If you fall sick frequently and seek medical attention, your financial fitness takes a hit whereas reduced medical costs help you contribute more towards retirement.

2.Never Stop Planning

Nearly half of the US citizens retire without any retirement planning (Source: They believe their retirement savings and Social Security benefits will tide them over the rest of their life. The same holds true for single women who have already retired or are about to. Their train of thought goes a little something like this – Well, I’m just an old lady; how much would I possibly need for retirement? However, a realistic look at their financial resources would tell them, quite a lot! If you too think the same, it is time to reconsider your options. You also need to figure out a way to pare back your living expenses during your retirement years.

3.Generate Reliable Income

Most of the time, people are unable to make their money last as long as they live because they often spend from their retirement savings unwisely. The rate of withdrawal is often too high, and they run out of money. Single retired women can avoid such a fate by using 401(k) accounts and IRAs to build a lifetime retirement income. If you choose this, you must also remember that while you can generate a reliable income from multiple sources,  each has its own set of pros and cons. Also, the retirement income you generate varies considerably with each method. Thus, it is important for you to figure out which method (or methods) of generating retirement income suits your lifestyle and current economic situation the best.

Studies show that women are less confident about money matters when compared to their male counterparts. For instance, according to a 2014 report published by The Global Financial Literacy Excellence Center, only 38 percent of women could correctly answer simple questions about inflation and interest rates.  If you do not feel confident about dealing with financial matters or retirement planning, we suggest hiring an experienced financial advisor to devise detailed retirement planning strategies for financial security. A well-thought-out retirement plan makes single women feel better about their finances and works wonders when it comes to fulfilling their long-term retirement goals.
Next Post »