Being single has its perks in retirement. Sure, you won’t get a portion of your spouse’s Social Security benefits, and you won’t have additional retirement savings to draw from, but there are several ways you benefit from retiring solo, something that isn’t that uncommon these days.
After all, as of the 2023 U.S. Census, roughly 28% of people 65 and older in America live alone. That amounts to about 16 million people, just over 10 million women and just under six million men. For many, it's a byproduct of widowhood or divorce. For others, they never got married to begin with.
Either way, millions of people are entering retirement without a partner, and while the media and society may frown upon it, it can be empowering and enriching.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“Being single is a superpower when it comes to building wealth and what you do in retirement,” says Pam Krueger, founder and CEO of Wealthramp. “You are the breadwinner and also the CFO. You are in control. That control is not a burden. It’s an opportunity.”
From making financial decisions to spending less money, here are six ways being single in retirement can save you cash.
1. You can control your investment strategy
If you are single and getting close to retirement, you won’t have to worry about the impact maxing out your 401(k) and catch-up contributions will have on the household budget.
If you are married, your spouse may not be ok with giving up dinners out or swapping going to the movies for Netflix to save more, but when you are on your own, you don’t have anyone to answer to. You can scrimp and save as much as you want.
“You don’t have anyone holding you back,” says Krueger. “You can keep your lifestyle from creeping.” This may not be as easy when there are two people and two lifestyles to maintain. Sometimes when there are two of you, it’s easier to get carried away with spending, she says.
2. You get to choose what you spend your money on
Marriage means compromise, and if you are heading into retirement with a spouse, you will both have to agree on where and how you spend your golden years. That could mean living in a big house even if you don’t want to, or it could mean giving up your dream of traveling.
But single people don’t have to compromise. They can downsize into a smaller home with less maintenance or even choose to rent, which can save them a lot of money in retirement. That cash could be used to travel, pursue a hobby, or anything else they want to use it for.
You get to prioritize what you spend your money on, says Kathy Costas, a certified divorce financial analyst at EP Wealth Advisors. “I have a number of clients who move out of the big house and buy a condo or spend it on travel. It’s the freedom to choose how to spend it. It’s not having to make a compromise,” she says.
3. Your Medicare premiums will be lower
Your Medicare premiums are based on your modified adjusted gross income (MAGI), and if you are married, your combined MAGI. The more you make, the higher your premiums may be.
If you are single, your Medicare premiums will likely be lower than if you're married.
“You won’t have to pay as much,” says Tricia Mulcare, principal at Homrich Berg. Plus, if you live in one of the nine states that tax Social Security benefits, you’ll pay less tax.
4. You could avoid IRMAA
The Income-Related Monthly Adjustment Amount, or IRMAA, is an extra charge added to your Medicare Part B and D premiums if your MAGI exceeds certain limits.
That could occur when you reach age 72 and required minimum distributions kick in. That’s particularly true for married couples.
But if you are single, your RMDs may not push your income up enough for you to face an IRMAA.
RMDs in general are known as the marriage tax, says Costa. A couple taking RMDs is more likely to be pushed into a higher tax bracket. But if it's just one person, you'll pay less taxes on mandatory RMDs, she says.
5. Your expenses will be cheaper
From groceries to travel, living alone is cheaper than living with a partner. “When you're grocery shopping, you're only feeding one person. When you go to a restaurant, you're only buying for one person. When you travel, you're only paying for one airline ticket,” says Mulcare.“You have better control of the utilities.”
When you live alone, you don’t have to tell someone to shut the lights off. You also don’t have to worry about taking on someone’s debt, like student loans, credit cards, or a car payment.
6. Retirement planning is easier
Whether you follow the 4% rule, the “die with zero” rule, or the 80% rule of retirement, when you are single, it's a lot easier to decide how you’ll spend your savings in retirement. You can invest and draw down money based on your lifestyle, goals and risk tolerance.
When planning for long-term care, you only have to worry about yourself, which will be a lot cheaper than covering the expense of you and your spouse.
“There are fewer variables, it's a lot simpler,” says Krueger. “Not having someone else in the mix makes it a lot smoother.”
Fly solo in retirement and control your destiny
It might not be what you pictured, and it's true, you won't have someone to split expenses with, a combined nest egg to draw from, or an extra Social Security check, but there are still significant advantages to flying solo.
You gain complete control over your savings and investments, how much you spend on things like food and travel, and you won't inherit anyone else's debts or financial burdens. The real secret to successfully navigating a solo retirement is to embrace it and see it as an opportunity, not a burden.
Related content
-
My First $1 Million: Early Retiree, 57, Western North CarolinaEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Top Tech M&A 2025: The Prospects We're WatchingHigh interest rates and economic uncertainty have dimmed the market for big M&A tech deals, but the tides could be turning.
-
Don't Have an Estate Plan? Six Things That Could Go Very WrongBad things can happen when you're unprepared, such as big-time taxes and family turmoil. Generational planning can help protect the people you love. Here's some expert advice to help you out.
-
A Financial Planner's Tips for Teaching Kids About Wealth Without Creating EntitlementIf your kids are likely to inherit and you're worried about how they'll manage, start talking about money and teaching common-sense habits as soon as you can.
-
Think Twice Before You Tap Your 401(k) EarlyPenalty-free distributions have become more accessible, but they can be detrimental to your retirement security.
-
Retirement Reimagined: Finding Your Tribe in LGBTQ-Focused CommunitiesDemand for LGBTQ retirement communities in the U.S. is high, but inventory is not easy to find. Here are some safe havens to explore.
-
The $1 Million Retirement Question: Are You Being Tax-Smart About Your Pension?A financial planner raises some key considerations for navigating retirement with a pension and recommends four strategies.
-
The Costly Mistake You Might Be Making With Your First 401(k)Most people start contributing to their retirement savings later in life. That could be a big-time mistake, literally costing you thousands of dollars.
-
Dementia Hot Spots: Is Your Region Raising Your Risk?Why a 25% higher dementia risk could be tied to your US location. But you're not powerless; there are 14 ways to lower your risk.
-
Does Donald Trump Claim Social Security Benefits?Social Security is a hot topic. I thought it would be interesting to see if President Trump and previous presidents collect Social Security benefits.
