Solo agers need financial planning tailored to their needs

The term “solo ager” often brings to mind someone who is age 50 or older, single, living alone and without traditional family support. In reality, the solo aging population is far more diverse, encompassing individuals with a wide range of life experiences and circumstances who often make important financial decisions without the built-in sounding board that a spouse or partner can provide.  As this client segment continues to grow, advisors have an opportunity to deliver tremendous value.

The realities of solo aging

Living as a “party of one” creates financial challenges that married couples may not face, including tax considerations, healthcare plans and the absence of shared financial resources. Those challenges can include understanding what happens to their assets without a will or trust and how different assets may be taxed when passed to loved ones.

Just as important are the deep personal questions many solo agers face. Who can they trust if they become ill or experience a major medical event? Who should serve as their trusted contact, healthcare surrogate or power of attorney if they are no longer able to make decisions? For some, trusted decision-makers may be children or siblings. For others, they may be friends who’ve become their chosen family. 

Without financial and healthcare powers of attorney in place, those loved ones may face added stress and legal hurdles when trying to help. Planning should account for the solo ager’s unique circumstances and relationships just as carefully as their assets.

Build trust through education, not pressure

Some solo agers delay estate planning and other important legal processes — not because they don’t care, but because they don’t have the bandwidth to manage everything else in their lives. I’ve learned that asking one simple question can completely change the conversation: What is the biggest roadblock that has kept you from taking action?

For many clients, the answers are practical. Some believe estate planning is too expensive. Others find attorneys intimidating or simply don’t want to start over with another professional after already sharing deeply personal financial information with an advisor. Sometimes they aren’t ready to face the realities of aging alone. Those conversations reinforce an important lesson: Clients move on their own timeline, not ours.

Our role is to educate, remove obstacles wherever possible and consistently demonstrate why these planning decisions matter. Some solo clients assume estate planning is less important than if they were married with children, when it is often even more critical. They need a plan that can protect the assets they have worked hard to build and ensure they have support when they need it most. Helping clients understand the “why” often gives them the confidence to move forward.

Confidence is the most valuable outcome

Working with solo agers requires an advisor who is willing to meet them where they are. It can be tempting to focus on completing checklists or moving clients toward the next planning milestone, but progress is achieved when advisors respect each client’s timeline and support them authentically along the way. 

One client came to me after a divorce. He had two adult children and a long-term partner, although they chose not to marry. He rarely completed the “homework” I’d give him or gathered the financial documents we needed, but he’d attend meetings consistently. 

Rather than allowing the planning process to completely stall, we focused on small, manageable steps. Over time, that patience built trust and enabled us to develop a comprehensive financial plan, complete his estate planning documents and help him navigate important decisions about protecting both himself and his children. Nearly 20 years later, life has inevitably thrown him several curveballs. Because we prepared for his unique needs, each challenge became a minor detour rather than a major reroute. This customization and care is ultimately what clients remember. 

As the solo-aging population continues to grow, advisors who approach these clients with empathy, patience and education will be well positioned to build lasting relationships with a client group for whom trusted partnerships can be especially meaningful. Advisors can provide something even more valuable than a financial plan: the reassurance that they do not have to navigate the future alone.

Danielle Lucht, RICP, CDFA, is the founder of Everwell Financial and a seven-year MDRT member with five Top of the Table qualifications. Contact her at danielle.lucht@innfeedback.com.