The Cost of Aging on Your Own
- Author: Bryan Miller
- Posted: 2024-10-02
A new study has found that married people often end up wealthier and face less poverty in old age compared to people who are not married. This is becoming more important as more Americans are choosing to stay single.
Even though only 4% of people over 75 have never married, this number is higher among younger seniors. 8% of those aged 65 to 74 and 13% of those from 55 to 64 are not married.
This means as people grow old, more of them are doing it alone, which could lead them to face more financial challenges.
Married couples usually have more money, are worth more, and are less likely to be poor compared to people who are divorced, widowed, or have never been married. This information comes from a study that tracked over 5,000 people in Wisconsin from age 18 to 72.
Why Marriage Might Help
The study's main researcher, Deborah Carr, pointed out that married folks tend to do better financially. They earn more, save more, and are less often poor, even after considering other personal factors like health, behavior, and education level.
One surprising find was that single men are financially worse off compared to those divorced, widowed, or married. Their incomes are about half that of married men, and nearly one in five single men live in poverty, versus about one in 28 married men.
Not having a partner means single people bear the cost of living alone — everything from the mortgage to minor expenses like hotel stays or even a tube of toothpaste.
If they fall sick and need care, they might have to pay for assistance, something married people might get for free from their spouse.
Also, in the U.S., married couples get certain benefits, like being able to receive Social Security payments based on their spouse's work history or benefits following a divorce.
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Another issue might be how workplaces view single versus married employees, with some believing married men are more deserving of raises and promotions due to perceived stability.
Divorced people, especially women, face financial hardships too, often ending up with significantly less wealth than married individuals. This disparity could be due to women prioritizing family over career, which then impacts their financial stability if the marriage ends.
Planning is Key, Especially for Singles
The research suggests that singles, including those never married, need to start financial planning early. Shockingly, over half of the people researched had not prepared for their financial future.
Professor Annamaria Lusardi from Stanford emphasizes making financial planning a regular habit, like working out or meeting friends, and stresses the importance of financial literacy, particularly for women, given their higher risk of financial struggles if divorced or widowed.
Working longer can also help boost your financial security by allowing more time to contribute to retirement savings and less time withdrawing from them. Delaying retirement until 70 can maximize Social Security benefits.
After retirement, it’s essential to manage and stretch out your savings, considering we’re living longer lives. Planning for big costs like long-term care and knowing community resources can help save money.
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Moreover, building a strong social network can be key for older single individuals. Being without a spouse or children means it's crucial to have a support system of friends, siblings, or cousins who can help out in times you might otherwise need to pay for services.
By preparing financially, improving financial know-how, working as long as possible, planning post-retirement spending, and cultivating a solid support network, singles can face aging with confidence.
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