Senior Spotlight: Planning Tips For Child-Free Retirees

Welcome back to the Bobbi Decker Senior Spotlight! We have talked a ton about retirement strategies over the years – but one area we have not dedicated a blog to is being a child-free retiree! According to the US Census Bureau, over 15 million adults aged 55 and older do not have kids. When broken down by age range, 23% of those in their 50s have never had kids, followed by 22% in their 60s and 15% in their 70s. What does that mean for planning your later years? Here are some things to consider.

What Doesn’t Change 

Your retirement goals should always be your own. Certified Financial Planner (CFP) and Childfree Trust Founder Jay Zigmont reminds us of one key strategy that applies to all of us: “Retirement planning is still goal-based planning.” Joseph M. Favorito, CFP and Managing Partner at Landmark Wealth Management, LLC reiterates that “Everyone has a different set of goals with or without children. The key is ensuring your plan reflects your particular path.” Married or single, parent or not, your retirement should reflect your values and your lifestyle. You’ve earned it! 



What May Be Different 

The two different key considerations for retirees without children are typically 1) Who will I leave my legacy too? And 2) How is my aging support system and long-term care planning impacted by not having adult children to help? Those with children often pass down their financial legacy to their kids. Those without may wish to consider naming nieces and nephews, other loved ones or friends as beneficiaries. Charitable giving is another option. 

Financial planners often suggest that child-free retirees consider what aging looks like without family caregivers. Investopedia advisors suggest exploring options such as long-term care insurance and Health Savings Accounts (tax-free savings for qualified medical expenses). 

Along the same lines is ensuring that you have someone you trust to make decisions for you if you can’t. It’s critical to designate a guardian or conservator in the event one is needed, and important to name a beneficiary to settle and manage the estate upon your passing. 

There is another approach that may differ for retirees without children, though it may not be one everyone agrees with. Yahoo! Finance explores how “Without children, retirees may have more flexibility in how and when they spend.” Some advisors assert that without kids, you have more freedom to align your spending with your lifetime and not your legacy. Certain child-free retirement strategies even involve more aggressive investments and a ‘spend it down to zero approach.’ Note that we are not advocating any particular strategy but simply sharing what some industry experts have discussed. 

Do you think having children or not is a critical part of your own planning? Feel free to join the conversation on Facebook or LinkedIn!

All my best,

Bobbi 

Resources Used: US Census Bureau / 6 Things To Do Differently When Planning for Retirement If You Don’t Have Kids / Retirement and Long-Term Care Planning for People Without Kids

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