Are you a “Solo Ager”? Here Are Some Things to Consider

A “solo ager” is someone who doesn’t have any family or close friends nearby as they enter retirement. Solo agers are becoming common, as a growing number of Americans live alone,* whether because they’re single, widowed, or divorced. Additionally, they’re child-free, or have adult children who live far away, leaving them to their own devices. If this includes you, there are some financial considerations to keep in mind. The most satisfied solo retirees are those who are well-prepared for retirement. These include financial and legal matters to come. If you don’t have children or a support system of close friends nearby, you face some specific challenges.

Who to Appoint to Make Financial Decisions

Settling some financial matters can be made more difficult without family around, as you need to find trustworthy people to help. Who will stand in for you and make decisions on your behalf if you become unable? It’s a tough question, but it has to be asked. Family and friends may not be the most suited for the roles of executor and proxy. Despite this, they’re often* the go-to choice. Before you ask someone to fulfill one of these important obligations, it’s crucial that you make sure they’ll be responsible. Be clear about what you’re asking of them. Filling these roles can also require the right skills and knowledge.

If you’re a solo ager and need a friend to be an executor or health care proxy, ask yourself: Do they have the time? Can you reliably say they’ll outlive you? Do they know how to manage money? And will you be able to compensate them?

Have a Checklist and Other Legal Directives

At minimum, solo agers will need a living will to enumerate their wishes about how they want to be treated in different situations. Basically, a living will is your written instructions concerning how you want to be treated in medical situations where you are unable to make decisions yourself. This could involve your wish to withhold life. For example, extending treatments such as CPR, a mechanical respirator, intravenous or tube feeding, dialysis, et cetera. All 50* states allow you to “express your wishes regarding medical treatment in terminal illness or injury situations, and to appoint someone to communicate for you in the event you cannot communicate for yourself.”

A healthcare proxy, meanwhile is a durable power of attorney that specifically names the person you choose to carry out your wishes and make medical decisions on your behalf if you’re unable. Your lawyer can help prepare these documents, and you should also make sure your family has been made aware of them. It’s also a good idea to provide copies to your regular physician and take them with you in the event you are admitted to a hospital.

What Local Professional Resources Can You Use?

Qualified financial professionals may be able to fill those roles typically held by family members. Your team of experts may include an elder law attorney to handle legal matters. Additionally, it may include a patient advocate or geriatric care manager to oversee health care decisions. And, a financial professional to manage financial affairs, and neighbors or friends in town who can help in a crisis.

Have a Financial Power of Attorney or Revocable Living Trust

Once you reach a certain age, you need to begin strategizing for a time when you may be more vulnerable. You may be very secure and independent now, but over time, that could change. While there are laws in place if you didn’t plan in advance for these things, generally speaking, you probably want to avoid having strangers who aren’t professionals having control over your money.

You may have been encouraged to select a financial power of attorney to oversee your money. But for a solo ager, you may be better served** with a solid revocable living trust which offers more flexibility and privacy. Check with an elder law attorney about which financial planning tool could best fit your needs.

*Sources: Right at Home, Kiplinger