Single people and retirement

marycanary

I've been thinking about retirement as a simple person. Many of the threads on the board such as the Number, Pauper and  Nuts tend to be dominated, for obvious reasons by people in couples. 

Being single brings additional considerations when it comes to planning for retirement. To begin with, there is a financial challenge. Although two can't live as cheaply as one. One can not live on half the expenses of two. For divorcees, the equity built up in pensions and homes may be shared leading to reductions which can have profound effects on pensions, savings, investments and the chance to later downsize the family home. Single parents have to raise children on one or perhaps one plus a little bit more of a salary while having high expenses for child care. 

Socially things are different.  Of course, some people are happier spending most of their time alone and don't feel the need to socialise. Others can feel isolated and have to make the effort to get out and socialise. It doesn't have to but it often costs money, for instance, to go to the pub, for a meal or some other activity. Then there is the whole issue of single supplements for holidays.

On the other hand, decisions on the allocation of money to saving, spending and investing are purely your own and do not have to be agreed upon with someone else who may have differing views

My own story is that I was married with children when we decided to separate. We both kept our pensions as they were similar DB schemes. The house was sold and the proceeds split two ways because it was his stated intention to buy a home so the children could spend time living with us both. He moved in with a friend and I bought a house using my share of the equity as a deposit. 

He then disappeared; I don't mean in some true crime, under the patio sense. He continued to send birthday and Christmas cards to the children, so we know he was still alive but he left the area. The CSA told me that there were no records of him claiming benefits or paying tax. Allegedly, none of his family or friends knew where he was. I think he left the country to work in Europe, but I don't know. He did not contribute to the childrens' expenses. Miraculously, he reappeared soon after the youngest had left school and was about to start university.

I worked full time, looked after the children, paid the mortgage and generally got on with life. I did well at work and was promoted but I developed an unpleasant physical illness which caused me to take a few months off work. Although it is now well controlled, I decided my job was too stressful and the hours were too long. I obtained a more enjoyable but lower paid job closer to home and family support. Although I earned less it was a good move, housing is cheaper, I don’t have a commute and the quality of life is much higher.

In many ways I have been very lucky, my children are healthy, they have jobs and homes of their own. and I have grandchildren. I am mortgage free, with no debts and a good DB pension. I intended to retire at age 60 when I should have an annual pension of £33k, a small SIPP of about £45k and other savings/investments of about £110k. My ambition is to travel because this is something I have not had an opportunity to do.

I would be very interested to hear of the plans of other single people, retired and still planning. Both the financial element and how you are or intend to spend your time.

Audaxer

marycanary said:

In many ways I have been very lucky, my children are healthy, they have jobs and homes of their own. and I have grandchildren. I am mortgage free, with no debts and a good DB pension. I intended to retire at age 60 when I should have an annual pension of £33k, a small SIPP of about £45k and other savings/investments of about £110k. My ambition is to travel because this is something I have not had an opportunity to do.

You should have a very comfortable retirement with that amount of DB income alone. When you get your State Pension you will be in an even more comfortable position. I would recommend checking your State Pension forecast if you have not already done so, as you could find that you may need to make some voluntary NI contributions once retired to reach the maximum amount for the new State Pension.

Albermarle

. Many of the threads on the board such as the Number, Pauper and  Nuts tend to be dominated, for obvious reasons by people in couples. 

On the other hand , I am always surprised by the number of posters who are single with no dependents . Maybe these are the non regular ones , who tend to come on with a specific question , and do not join in with the long running threads you mention.

MovingForwards

Have you read this one:
https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

There's a right mixed bag of people.

bostonerimus

I think you've done really well and are set up for a comfortable retirement. Now that the kids are all set do a check of your finances particularly insurance to make sure your not paying for unnecessary policies. Also let them start doing things for you...you've earned it. Don't be closed off to new relationships, but be careful about them as financially independent retired single people can be the target of unscrupulous people. If you can be happy on your own being retired as a single person is a great opportunity to do just what you want. Living on your own will have some consequences as you get older, but most people face those eventually and I feel that doing it early just gives you more time to prepare. I retired in my early 50s and I'm now in my early 60s and I love the freedom I have.

I divorced in my mid 30s and we divided everything 50/50. We had no children and although the divorce was emotionally difficult it was not vicious and we parted ways on reasonable terms and had no remaining financial connections - like pensions or alimony. I didn't want to stay in the same town as my ex so I found a new job back in the city where I had done my postdoctoral research and had a lot of friends and contacts. Being single allowed me to really focus on saving for retirement and without the expense of children I had quite a bit of spare income. I did not keep in contact with my ex (there was really no reason), but mutual friends would sometimes up date me and I assume they did the same for my ex. Maybe 10 years after the divorce I got a Facebook Friend request from my ex and so we've kept in loose contact through that since and actually this year we were in the same town for a couple of weeks and had dinner which was awkward, but also a lot of fun. The wounds are long healed and the feelings have mellowed and it was nice to talk.

Dansmam

About same as you financially OP. Unexpectedly single at 58 (he didn't quite disappear but that's another story. No patio involved), kids all up and away, and then covid plus WFH focussed my mind on the big priorities. No joy in work and enough in the bank so resigned around end of first lockdown. Looks like I got in early on what they're calling the Great Resignation. Didn't expect to be setting a trend but there we are.

Gained a flat and a van and a dog in the last 3 years (can recommend downsizing if only for the reduction in clutter and household jobs). Plus that's a ready made social life right there what with the dog walking community that built up in lockdown and a whole new world of people to meet once you start travelling. Plan is Europe for sunshine this year if covid, Macron etc allows. Wouldn't suit everyone but it's a mix that works for me. Can be cheap or spendy to fit budget. I veer from splurge to Scrooge quite happily within budget. Not in the market for cruises or long haul but that's the trade off for freedom. So that's what I'm doing. 

PS I only really come on here for the squirrelled nuts thread to see how  two live on less than I do. But I am easily distracted.

SMcGill

I’m a singleton heading for retirement with lower DB than you but higher cash & personal pension numbers.

I don’t have lots of hobbies or a 7 page bucket list of adventures to go on but now that I’m only a few short months away from retirement I’m beginning to see why some people say they’re busier in retirement than they were working.

Apart from doing more exercise and seeing more of friends/family I’ve already earmarked the courses I’m going to take this year, started re-landscaping my garden and planning a trip to Iceland, and of course there’s at least a year’s worth of work clearing out the loft, garage and shed! And I plan on adopting a rescue dog

barnstar2077

It is definitely tougher financially for single people than it used to be.  I was able to get a mortgage, for a three bedroom house, on my own twenty years ago with a ten percent deposit.  Not much chance of single twenty year olds on average salaries doing the same these days! 

Albermarle

SMcGill said:

I’m a singleton heading for retirement with lower DB than you but higher cash & personal pension numbers.

I don’t have lots of hobbies or a 7 page bucket list of adventures to go on but now that I’m only a few short months away from retirement I’m beginning to see why some people say they’re busier in retirement than they were working.

Apart from doing more exercise and seeing more of friends/family I’ve already earmarked the courses I’m going to take this year, started re-landscaping my garden and planning a trip to Iceland, and of course there’s at least a year’s worth of work clearing out the loft, garage and shed! And I plan on adopting a rescue dog

Dogs are great, but they can be restrictive on your freedom to just get up and go places. Just something worth keeping in mind .

Albermarle

MovingForwards said:

Have you read this one:
https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

There's a right mixed bag of people.

I read the first few pages , but not all 70 

There was one poster who claimed to live on £3600 pa, including running a car .
I can fully understand that many people have little interest in material things , but I find it difficult to understand why you would live on less than £150 a month for groceries, food etc when you do not have to . Somebody who was actually poor would think you were mad for not spending more if you could afford it .

Also a lot of comments in that thread about all those fat cats on the Pensions board 

SMcGill

It is definitely tougher financially for single people than it used to be.

I’ve definitely felt the pressure of having sole responsibility for funding my retirement … one income, one savings, one SP etc. and I suspect that’s led me to holding a bigger ‘buffer’ than couples (proportionately).

Then again I don’t need to worry about anyone else’s future financial security when I do eventually shuffle off. I helped my daughter onto the property ladder years ago and now she’s self-sustaining so no inheritance needs either.