Single retirees may be worse off at retirement as they do not have the double benefits that couples do. According to a recent study, singles would need a larger nest egg than a married person would. *
Couples are at an advantage as they have two state pensions, their private pensions, and two income tax breaks, as opposed to a single retiree who benefits only from one state pension, one income tax break.
What can a single person do to remedy this problem?
If you are at retirement age already, very little can be done, apart from possibly deferring your pension for a few more years to grow in interest, working part time to supplement your income, or tightening the belt a lot.
- You need to know what your financial portfolio will be worth when you retire.
- Speak to your financial adviser to investigate the shortfall in your projected retirement fund and get a plan of action in place to up your premiums.
- Increase your premiums as your salary increases.
- Find out about contributing more to your work pension plan. Some companies match employee contributions, so the more you contribute, the more you are benefiting from the company topping up your retirement savings.
- If you have a few years left before retirement, then you could funnel all extra funds to boost your retirement pot, put funds into a rainy-day fund for unforeseen expenses during retirement, or to supplement your retirement funds when you need it e.g. to be used for vacations or repairs so your monthly expenses are less.
No one knows what the future holds, so it is best to plan for the worst-case scenario. We might be married or in a civil partnership now but could end up single later in life and inherit the burdens of a single person.
We should all plan our retirement as if we are single, so we can avoid nasty financial shortage surprises. It is always recommended to consult with your financial adviser about getting your retirement plan on track [email protected]
*www.which.co.uk
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.
