\n Ameriprise data shows 75% of single adults expect to remain unpartnered long term, but many still lack long-term health care plans, estate planning, and tax strategies tailored to solo retirement.\n <\/p>\n
\u00a0Nearly half (46%) of American adults are single, according to U.S. Census data, fueling a demographic shift that is pushing more advisors to design financial plans specifically for \u201cfinancially solo\u201d clients.<\/p>\n
Ameriprise’s new Flying Solo: Navigating Financial Autonomy study<\/a> found that 75% of surveyed individuals expect to remain financially solo for the long term. The survey spanned more than 3,000 single Americans with an average age of 65 and $700,000 in average investable assets. Respondents were either single\u2011never\u2011married, divorced, or widowed.<\/p>\n \u201cWe\u2019re absolutely seeing growth in financially solo clients\u2014whether single by choice, divorced, or widowed. It\u2019s one of the most meaningful shifts in planning right now and it\u2019s so important to us to meet this moment,\u201d said Anna Shaw, wealth manager with Coldstream Wealth Management<\/a>. \u201cEvery decision\u2014saving, investing, insurance, choosing to start a family, retirement timing\u2014carries more weight because it all rests on the shoulders of one person.\u201d<\/p>\n Slightly over half of individuals surveyed by Ameriprise were already working with a financial advisor, and 80% of those surveyed said that even if they became partnered in the future, they would still keep their finances solo and separate from their partner\u2019s finances<\/a>.\u00a0<\/p>\n \u201cIt was really clear that those who were financially solo valued the advice that they got from an advisor. It helped them feel more confident, and it was a place they could go to bounce financial decisions off when they perhaps didn’t have that in their life with a partner,\u201d Deana Healy, VP of financial planning<\/a> & advice at Ameriprise, told InvestmentNews. \u201cThat to me is a really positive message for advisors to realize they play such an important role for this particular group of people.\u201d<\/p>\n The top concerns for surveyed single adults<\/a> were ranked as running out of savings (43%), affording long\u2011term care (42%), becoming a burden to others (41%) and not having someone for emotional support as they age (30%).\u00a0<\/p>\n \u201cThe main issues we tend to encounter involve tax planning, especially for clients with large IRAs and qualified plans, as well as long-term care and estate planning<\/a>. Financially solo clients often face a steeper move into higher tax brackets, which can also affect IRMAA (Medicare Income-Related Monthly Adjustment Amount),\u201d said Josh Strange, president of Good Life Nova. \u201cEstate planning can be especially involved for single clients with no children, since they may not have the people in their lives who would typically serve as primary beneficiaries or decision-makers.\u201d<\/p>\n Among financially solo women, 54% said their legacy goal is \u201cnot being a financial burden to anyone.\u201d Nearly a third (31%) of surveyed single women said they are most proud that they won\u2019t be a burden on others.<\/p>\n