An Effective Guide for Single Women on Retirement Planning


If you are a single woman, you are most probably making all your financial decisions by yourself. You are solely responsible for your financial security during your golden years. Your single income brings its own set of unique challenges when it comes to some important financial goals such as retirement planning. Whether it is starting early, making the most of your self-directed 401k plans or considering investing in a life insurance plan, this guide is an effective tool for single women who want to create a sound individual retirement plan. Take a look: 

  • Start Planning Early 

You don’t want to be one of those people who think they have ample time to save for retirement and eventually end up retiring without enough savings. Proper planning with the help of a retirement planning advisor can get you to structure your individual retirement plan in a beneficial way. The savings from such a well-thought-out plan can generate a dependable retirement income. Learn how you can best use your 401k plan and IRA accounts to create a lifetime retirement income. Take a close look at your financial resources. This will give you a wake-up call regarding important financial decisions such as how long you need to work, whether or not you need to switch to a better-paying job etc., in order to add enough to your retirement savings. The sooner you start the easier it will be to achieve your retirement savings goals as time is the most valuable asset in this case. 

  • Take Life Expectancy into Account 

The median life expectancy of a woman is 88 years old. In this situation, longevity risk is one of the biggest challenges for retirees today. Understand the medical history of your family. Take the help of a professional retirement planner and accordingly set realistic timelines and goals for your savings. You can also add an additional layer of security to your nest of retirement savings by taking into account your current lifestyle and any related changes that you can think of when you retire. 

  • Prioritize Your Savings 

An emergency fund can prove to be really useful in case you are dependent on a single income. For instance, if you are unable to work for an extended period of time due to an illness or injury, this emergency fund can be a lifesaver. Generally, 6 months’ worth of expenses is recommended but your fund can be less or more as per your needs. However, building this fund takes time. Hence, the sooner you start saving, the easier it will be for you. Even putting away a few dollars into a basic retirement savings account can give you a good head start. Analyze your spending and figure out where you can cut down and redirect that money towards your savings. This will help you prioritize your savings better

  • Consider Investing in Life Insurance 

Typically, life insurance is designed to provide financial security for dependents when an individual passes away. However, even if you are single, but don’t want anyone else to bear your funeral expenses or are responsible for an elderly parent financially, life insurance will cover you. Life insurance is cheaper when you are younger, especially for women who don’t smoke. You can ensure your peace of mind on this front for a small price from your monthly paycheck if you are relatively healthy. 

Include these tips to create a robust retirement savings plan and you are sure to enjoy a retired life that is filled with financial freedom, even with your current single income. 

Author Bio:

Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ. He has over three decades of experience working with investments and retirement planning, and over the last 10 years has turned his focus to self-directed accounts and alternative investments. Rick regularly posts helpful tips and articles on his blog at SD Retirement as well as, SAP, MoneyForLunch, Biggerpocket, SocialMediaToday, and NuWireInvestor. If you need help and guidance with traditional or alternative investments, email him at [email protected].


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