When you live alone, you need to plan for retirement differently than someone who is married or has a life-partner. Those with a partner can, in most instances, rely on their partner to help out with expenses and be a caregiver, if they should become ill. However, when you are single, especially if you do not have close family, you need to plan in advance, and you need to plan better.
Most important of all: making sure that decisions about your health and well-being are made the way you want them to be made, if there comes a time you are not able to make them for yourself. You also want to be sure that you designate who should receive the things you own, personal possessions and assets.
If you rely solely on your own income, it’s necessary to have an emergency fund in place. It’s also a smart idea to have disability insurance. That way, if you need to stop working, you will have an income source. Unless you have another stream of income or significant personal assets, you’ll need the benefits of disability insurance, especially if you are disabled and can’t work for an extended time.
You may also want to consider long term care insurance. Someone turning 65 has a nearly 70% chance of needing long-term care in remaining years. It’s important to consider your options for care before you need it. You also should discuss these issues with your friends or family who you have nominated to make decisions for you, so they know your wishes. No one likes to think about these issues but studies show that individuals who have not designated anyone to step in often end up receiving care they did not want and are more likely to end up in an institutional setting.