How to make facing retirement alone less stressful

Millions of single Americans will face retirement without a partner, adding financial strain to this significant life transition, according to a new Advisor Authority study, powered by the Nationwide Retirement Institute.

A quarter of single investors said they did not plan to be alone in retirement, and nearly the same share said they are scared to grow old alone. Only a small group (9%) said that they enjoy the independence of being single in retirement. Despite these challenges, single investors remain optimistic about finding new love, with a quarter (26%) still hoping to find a partner in retirement.

Reasons for conducting the study

When asked why Nationwide decided to conduct this study, Rona Guymon, senior vice president of Nationwide Annuity Distribution, said that according to a Pew Research Center survey, around 30% of adults in the U.S. over the age of 50 are single.

“With this cohort making up almost a third of the U.S. population,” she said, “we wanted to know more about the unique financial challenges single investors are facing as they prepare for retirement and how they compare with their married or coupled counterparts. We also feel it is important to provide this information to advisors and financial professionals, so they have the knowledge and insights to better serve this group of investors as we work together to help more Americans achieve a secure retirement.”

Single and planning for retirement

Single investors often face retirement challenges that that their coupled counterparts do not face. As Guymon pointed out, those planning for retirement without a partner are bracing for added financial headwinds, compared to their married or partnered peers.

Nationwide’s survey found more than a third of single investors said they experience more strain or financial hardship than couples. “That’s not surprising when you think about the fact that single investors are relying solely on their individual savings efforts compared to those with a second source of income from a partner. We also know the current retirement system benefits coupled individuals who can leverage spousal Social Security or pension benefits and tax advantages – topics single investors should work with an advisor to address in order to create a holistic financial plan for retirement,” Guymon said.

The amount of money that this cohort has saved for retirement, compared to their perceived target savings goals, also shows a significant disconnect, the survey said. Nearly half (46%) of single investors said that they would need up to $600,000 in retirement savings to feel comfortable about their future. Yet just 23% said they have at least $250,000 saved and only 18% say they have $500,000 or more saved towards retirement.

Single investors may be missing some opportunities to optimize their investment approach, compared to their coupled counterparts, the survey said. For example:

• Less than half (49%) of single investors who have a strategy to protect assets against market risks said that they focus on diversification of assets or non-correlated assets in their retirement portfolios, compared to 62% of partnered investors.
• About one third (34%) of single investors do not currently have a strategy in place to protect their assets against market risk, compared to 27% of partnered investors.
• Single investors are less likely to turn to an advisor or financial professional for help, with just 35% saying they currently pay to work with one, compared to 46% of partnered investors.

Single investors who do work with a financial professional gain many benefits. As pointed out by Guymon, “single investors told us they find the most important benefits of working with a financial professional are protecting their assets against market risk, helping them make more informed decisions, and keeping them focused on long-term goals.”

Advisors are also focused on guiding their single clients toward a stable retirement, providing resources and strategies to address their unique needs. “Advisors told us they are talking to their single clients about when to claim Social Security benefits and when to withdraw funds from retirement accounts,” Guymon added. “They are also focusing on tax planning, developing plans to combat negative tax impacts traditionally alleviated by spousal income for single clients.”

The Nationwide Retirement Institute offers additional resources to help advisor facilitate conversations with clients. For additional insights on this survey data, see the infographic.

Nationwide’s tenth annual Advisor Authority study powered by the Nationwide Retirement Institute explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.

The Harris Poll, on behalf of Nationwide, conducted an online survey of 610 advisors and financial professionals and 2,524 investors ages 18+ with investable assets (IA) of $10K+, January 6-25, 2025. Among the investors, there were 866 single investors in total including 423 women investors, 434 men investors, 460 investors age <50, 406 investors age 50+ as well as 1,658 married or partnered investors.

© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.