Top considerations when planning for a single retirement

Published on 15th December, 2022 at 02:49 pm

Whether you’re single, divorced or widowed, planning for a future after formal employment may be even more important than if you’re in a dual-income household, with unique considerations pre- and post-retirement.

Reading time: 3 minutes

In this article you’ll learn:

• The importance of adequate planning when approaching a single retirement.
• What to consider both pre- and post-retirement as a single person.
• About the Wealth Sense tool you can use to check you are on track to a comfortable retirement.

Let’s talk pre-retirement

Chat to a financial planner

Since you don’t have a partner to bounce ideas off of or keep your financial decisions in check, an expert opinion can help balance your savings and spending strategies. Financial planning expert Annalise De Meillon Muller, manager of distribution and sales support at Glacier by Sanlam, says, “Single people need to be extra vigilant about financial behavioural biases, and have the responsibility to review their mindset and discipline, and consult and educate themselves where necessary.”

If you are not on track to the retirement you’re after, here’s how you can cut expenses in order to reach your goal

Think about your lifestyle

Consider the lifestyle you’d like to enjoy when you stop working or change the source of your income. Will you consult, volunteer, or maybe even start a small business? De Meillon Muller believes it’s a good opportunity to rethink your vision or goals.

“Think about where you’ll want to live and what you would like to be able to afford, and more importantly, when you’ll move,” she says. She advises against waiting until you no longer have the strength or the energy for a stressful move (or changes) and to do it while you’re still in control. Also think about how you’ll get around, and the costs attached to this.

Here’s a guide to picking the ideal retirement home.

Keep healthy habits

De Meillon Muller explains that life expectancy influences your choice of retirement income solution. “It also affects medical needs during retirement, and requires better health discipline prior to retirement to avoid extremely high medical costs after retirement that will negatively influence your quality of life.”

Read this for 10 important considerations when choosing a retirement income solution.

Plan for dependants and emergencies

“Because you are missing out on the potential cost savings linked to shared living expenses, saving requires an even greater focus and/or sacrifice, especially when you have dependants,” says De Meillon Muller. Access to cash or an emergency fund, retrenchment cover, income replacement and disability/dread disease cover are also key since there is no second income to rely on.

Keep your last will and testament up to date so your estate planning is carried out correctly. It is also very important that someone knows where your personal documentation is filed and what your wishes are should you become ill or incapacitated.

What to consider after retirement

Have a plan in place

De Meillon Muller suggests having an easily accessible list of names and numbers you can call in the event of an emergency, when you need to recover from an illness or if your car goes in for repairs or need small favours.

Stay up to date with news and technology

Watch out for scams. “The rate and pace of change are ever accelerating, and even being out of touch for a few years can dent your confidence,” says De Meillon Muller. This applies socially and financially.

Stay both physically and mentally active

Learn new things to stay active, as this will improve your quality of life and possibly help you save on medical costs. Maintain a support network, try to stay open-minded and curious, and resist becoming set in your ways.

Review finances annually

De Meillon Muller also suggests considering a power of attorney for when you are mentally but not physically capable of executing decisions during your golden years.

On track with your retirement savings? Find out with this handy retirement calculator.