A “solo ager” is a person who, upon retirement, has no family or close friends in their immediate vicinity. Growing numbers of Americans, whether single, widowed, or divorced, live alone, making solo agers more prevalent. Furthermore, many are childless or have distant adult children, leaving them on their own. If this applies to you, there are a few money concerns to think about. Those who are well-prepared for retirement tend to be the happiest. So, try to stay up-to-date on financial and legal issues. You will face particular difficulties in retirement unique to you if you’re a solo ager.
Who to Appoint to Make Financial Decisions
Without family nearby, settling some financial issues can be more challenging because you have to find reliable people to assist you. If you are unable to make decisions, who will take your place and make decisions on your behalf? Although it’s a difficult question, it must be raised. It might not be the best idea to assign family and friends to the positions of executor and proxy, anyway, even if they’re usually* the first choice.
Make sure someone will be responsible before asking them to carry out one of these responsibilities. Make it apparent to them what you need from them. The proper qualifications and knowledge may also be necessary to fill these positions.
If you’re a solo retiree and you need a friend to act as your executor or health care proxy, ask yourself: Do they have the time? Is it safe to assume that they will outlive you? Are they financially literate? And can you afford to pay them back?
Have a Checklist and Other Legal Directives
Solo agers will, at the very least, require a living will outlining their preferences for treatment under various circumstances. A living will is essentially a written declaration of your preferences for medical care in the event that you are incapacitated and unable to make decisions for yourself. For instance, whether or not you want to continue life-prolonging measures like CPR, the use of a mechanical respirator, intravenous or tube feeding, dialysis, etc. All 50* states permit you to “express your wishes regarding medical treatment in terminal illness or injury situations, and to appoint someone to communicate for you in the event you cannot communicate for yourself.”
In contrast, a healthcare proxy is a type of durable power of attorney that designates a specific individual to carry out your intentions and make medical decisions in the event that you are unable to do so. These documents can be prepared with assistance from your lawyer. You should also make sure any family are aware of them, along with your doctors.
What Local Professional Resources Can You Use?
Positions that are usually filled by family members may instead be filled by qualified financial specialists. An elder law attorney could be part of your team of professionals to address legal concerns. A geriatric care manager or patient advocate may also be involved to supervise the making of healthcare decisions. Additionally, you should have a financial advisor to handle your finances and local friends or neighbors who can support you in times of need.
Have a Financial Power of Attorney or Revocable Living Trust
You have to start planning ahead for a time when you might be more vulnerable once you reach a certain age. Even though you currently feel relatively safe and independent, things could change in the future. There are safeguards in place if you don’t plan ahead for these situations. However, in general, you definitely shouldn’t let strangers who aren’t financial experts end up in charge of your finances.
You may have been encouraged to select a financial power of attorney to oversee your money. However, if you’re a solo ager, you might be better off* with a strong revocable living trust that provides greater privacy and freedom. To find out which financial options could be right for you for you, speak with an elder law attorney.
*Sources: Right at Home, Kiplinger
