Clients Flying Solo in Retirement Planning May Be Ahead of the Game

Time for a pop quiz: Do you know what percentage of the US adult population identifies as single? We’ll give you a moment. 

Turns out it’s almost half (46%), according to the US Census Bureau, and this sizable population segment reports meaningful financial satisfaction. A new survey from Ameriprise found that nine in 10 single adults feel a sense of accomplishment regarding their finances, and nearly all have experienced monetary benefits from financial independence. Conversely, the vast majority contested common misconceptions about single adults, including that they are lonely, live less fulfilling lives or are less financially secure. It’s important for advisors to understand these nuances, said Deana Healy, vice president of financial planning and advice at Ameriprise, less they risk alienating this large (and lucrative) client segment. 

“Financially solo adults across generations are making solid progress toward their goals, including saving for retirement,” Healy told Retirement Upside. At the same time, navigating aging alone is no mean feat. For many singles, making a clear plan and getting guidance from a financial advisor is essential for maintaining a strong financial footing.

A Nuanced Marketplace 

In the survey’s sample of 3,000 solo adults, the biggest group was single and had never been married (52%), followed by divorced individuals (34%) and survivors of a marriage in which one member of the couple had died (15%). “There are nuances to advising each of these population subsegments,” Healy said. Widows, for example, are in a very different position from someone who’s never been married in terms of the financial challenges they face. One important throughline across these groups is that most want to remain financially independent:

• More than three-quarters (76%) expect to remain solo financially long-term.
• Eight in 10 would keep finances separate even if they partnered with someone.

“I think people come to enjoy their ability to make financial decisions for themselves without needing to balance that against a spouse or partner,” Healy said. Notably, widowed adults are the likeliest to want someone to share financial decisions with. “This likely reflects how those choices can feel heavier and more complex after the loss of a spouse.”

Help Wanted. When asked about the most challenging decisions to make solo, respondents cited investing, taxes, major purchases and retirement planning. Macroeconomic pressures add another layer of uncertainty, especially inflation and the high cost of health care. 

“Advisors taking on new single clients should check to see if they have put essential long‑term plans in place,” Healy said. “Many haven’t.” Only about one‑third of survey respondents have a current will. Protection against long-term risks is also limited, with just 29% holding long‑term care insurance and 34% carrying long‑term disability coverage. Essential legal safeguards are also often missing, as fewer than half have updated key legal documents, such as a health care directive or financial power of attorney.