Building a Brighter Future: Essential Steps for Solo Retirement

For many Australians, retirement planning is primarily about finances. But retirement is much more than just a financial milestone. Whether you’re retiring solo by choice, due to divorce, or the loss of a partner, it’s crucial to consider the broader aspects of your new life chapter.

According to the Bureau of Statistics, data released in 2020-2021 revealed that 56% of retirees were women. Interestingly, 34% of retired women relied on their partner’s income to meet their living costs at retirement, in contrast to only 7% of retired men. Financial security is the primary factor influencing retirement decisions, highlighting the importance of understanding the financial impact of going solo in retirement.

A 2018 report from Monash University and Australian Super delved deeper into this issue by interviewing 40 women about their financial situation in retirement. Shockingly, 45% of interviewees had experienced divorce, often resulting in significant financial consequences. This was particularly challenging for women who had taken on the lion’s share of childcare and household tasks, limiting their opportunities to work and save for retirement.

After a divorce, these women no longer have their partner’s financial assets and income to rely on during their retirement years. Many find themselves with little in the way of savings or assets of their own, highlighting the importance of comprehensive retirement planning beyond just financial considerations. It’s essential to address the broader aspects of retirement, including emotional well-being, social connections, and personal fulfilment, to ensure a fulfilling and secure retirement, especially when going solo.

f you are going solo in retirement, there are several key considerations to keep in mind to ensure a fulfilling and secure transition:

1. Financial Planning: Assess your financial situation carefully and develop a comprehensive retirement plan. Consider factors such as your retirement savings, investments, pension entitlements, and potential sources of income. Create a budget that accounts for your living expenses, healthcare costs, and any unexpected expenses that may arise.
2. Social Support: Cultivate a strong social support network to provide companionship, emotional support, and opportunities for social interaction. This network can include family, friends, community groups, and social clubs. Stay connected with others to combat feelings of isolation and loneliness often associated with solo retirement.
3. Health and Wellness: Prioritise your physical and mental health by adopting healthy lifestyle habits. Maintain regular exercise routines, eat a balanced diet, get enough sleep, and manage stress effectively. Attend medical check-ups and seek professional help if you experience any health concerns.
4. Housing Considerations: Evaluate your housing needs and preferences for retirement. Decide whether to stay in your current home, downsize to a smaller property, or explore alternative housing options such as retirement communities or assisted living facilities. Consider factors such as affordability, accessibility, and proximity to essential services.
5. Legal and Estate Planning: Review and update your legal documents, including your will, power of attorney, and healthcare directives. Ensure that your estate plan reflects your current wishes and accounts for any changes in your circumstances. Consult with legal and financial professionals to address any legal concerns or estate planning needs.
6. Lifelong Learning and Personal Growth: Embrace opportunities for lifelong learning and personal growth to stay intellectually engaged and fulfilled in retirement. Pursue hobbies, interests, and educational pursuits that bring you joy and satisfaction. Engage in activities that challenge your mind and expand your horizons.
7. Volunteering and Giving Back: Consider volunteering or engaging in community service activities to contribute positively to society and make a difference in the lives of others. Volunteering can provide a sense of purpose, fulfilment, and social connection while helping you stay active and engaged in your community.

By considering these key factors, you can navigate the transition to solo retirement with confidence and create a fulfilling and meaningful life chapter ahead.

Remember, retirement is about more than just financial security. It’s about living a fulfilling and meaningful life. At JBS Financial, we understand the importance of planning for all aspects of retirement. Let us help you navigate this exciting new chapter with confidence and peace of mind. Reach out to our team here.

Ref: Retirement and retirement intentions, Australia