Navigating the Future Alone: A Financial Roadmap for Solo Agers
For many, the standard image of Retirement is a Family-centric affair—grandchildren on the lawn and a spouse by one’s side. However, a growing segment of the population, known as Solo Agers, is redefining what it means to grow old. Whether by choice or circumstance, roughly a quarter of older adults are navigating their later years without the traditional support of a spouse or children.
In a recent discussion hosted by the Positive Aging Community, authors Mary Young and Allen Davis discussed their new book, Financial Planning for Solo Agers: Managing the Six Hazards and Thrive. Their message is clear: solo aging requires a unique, proactive strategy to ensure financial and personal Security.
Identifying as a Solo Ager
A solo ager is generally defined as an older adult who lacks nearby family support. However, the authors suggest a broader view. "Solo aging" exists on a continuum. It includes:
Individuals who never married or had children.
Those who are divorced or widowed.
"Solo ager-ish" individuals who have children, but whose children live far away, are estranged, or are burdened by their own responsibilities.
Ultimately, a solo ager is anyone who identifies as such and must function independently.
The 6 Hazards of Solo Aging
To thrive while aging alone, one must confront six specific "hazards" that often derail solo plans:
Underestimating Financial Consequences: Living alone is more expensive. Solos miss out on shared expenses, double Social Security checks, and joint retirement plans.
The Delusion of Self-Sufficiency: The habit of "doing it all" can lead to a dangerous refusal to accept help when it eventually becomes necessary.
Underestimating Care Needs: Roughly 80% of long-term care is provided by family. Without a spouse or child, solo agers must have a plan to pay for or piece together this support.
Refusing to Budge: Many solos wait too long to move into age-appropriate housing, eventually lacking the energy or Health to make a transition when they most need it.
Social Isolation and Loneliness: Without built-in family connections, solos must work harder to build and maintain a social network.
Procrastination: Research shows solos are less likely to have a formal aging plan or see a financial planner.
Building Your "Peeps" and Support Team
Because solo agers lack a "doting daughter three streets over," they must create a professional support team, or what Davis calls their "peeps". This team might include:
Financial Planners: To create a "blueprint" that aligns personal needs with financial ability.
Estate Lawyers and Social Workers: Some law firms now include social workers to help navigate care transitions.
Aging Life Care Managers: Also known as geriatric care managers, these professionals can oversee health and logistical needs.
Solo Communities: Joining "villages," workshops, or online groups provides a sounding board and shared research with peers in the same boat.
Financial Planning: Myths and Realities
One of the biggest hurdles for solo agers is the "scarcity mentality"—the fear that they don’t have enough to survive. Allen Davis emphasizes that you don’t need to be rich to do financial planning.
The Power of the "Dossier": The first step is documenting what you have: income, savings, and assets. Knowing the facts often provides relief, as many find they are in better shape than they realized.
Creative Liquidity: For those "caught between the cracks," financial planners can help find liquidity in existing assets, such as home equity, to fund future care.
Fee-Only Options: For those concerned about costs, fee-only planners offer advice without taking a percentage of assets.
The Bottom Line
Solo aging is not about being "unbefriended" or an "elder orphan". It is about being proactive. By facing the financial realities today and building a community of support, solo agers can move from a state of uncertainty to one where they can truly thrive.
