Single individuals need retirement and estate planning just as much as those who are married. While there are some small differences in planning needs, there are many shared commonalities. First, it is important to start saving for retirement now. A good target savings rate is 15% of gross salary. Next, have an emergency fund. For those who are single, you should be able to cover at least six months of expenses in case of an emergency. This is a bit higher recommendation relative to a married couple as there is no second stream of income available to mitigate losses. Third, explore insurance options, especially if you have dependents. Fourth, get an estate plan in order. Part of the benefit of having an estate plan is that it will protect you in case of incapacity. Finally, make sure the estate plan includes a will. Without a will, the state will disperse your assets based on a very mechanical distribution scheme.
See Judith Ward, 5 Financial Planning Strategies for Singles, Forbes, July 5, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
