08 May Discover the importance of a retirement plan for single women
Retirement Planning for Single Women
Discover the importance of a retirement plan for single women and how to start building financial independence in your 30s and beyond.
Why Retirement Planning Looks Different for Single Women
If you’re a single woman in your 30s or 40s, you might feel like retirement is a distant concern. But here’s a reality check: single women often face unique financial challenges that make early retirement planning not just smart, but essential. Whether you never married, divorced, or choose to remain independent, planning for retirement on one income requires strategy and foresight.
According to the U.S. Department of Labor, 80% of women will be solely responsible for their finances at some point in their lives. Yet many still underestimate how much they’ll need to retire comfortably—or believe they have more time than they actually do.
Let’s break down why now is the perfect time to take control of your future.
The Retirement Gender Gap: What It Means for Single Women
Women, on average, live longer than men and often earn less over their lifetimes due to wage disparities and time out of the workforce. That means:
You need more savings to fund a longer retirement.
You might not benefit from spousal retirement benefits.
You’ll likely shoulder all financial decisions yourself.
It’s time to flip the narrative from reactive to proactive.
How to Build a Retirement Plan for Single Women
Start With the Basics: Know Your Number
Use a retirement calculator to estimate how much you’ll need. Include factors like desired retirement age, lifestyle costs, health insurance, and inflation.
Pro Tip: Many experts recommend aiming for 70–90% of your pre-retirement income each year in retirement.
Choose the Right Retirement Accounts
Consider these top options:
- Traditional or Roth IRA: Great for lower contribution limits but long-term flexibility.
- 401(k): If offered through your employer, take full advantage—especially if there’s a match.
- Fixed Indexed Annuities: Provide guaranteed income without market risk.
Visit The Policy Shop to explore solutions like the WealthX IUL for long-term, tax-advantaged growth.
Automate Your Contributions
Treat retirement savings like a monthly bill. Even $200/month in your 30s can grow to six figures by retirement.
Don’t Forget About Health Care
Long-term care planning is especially important for single women. Consider insurance or annuity-based riders that provide chronic illness coverage.
How to Stay Financially Empowered While Single
Being single gives you autonomy and flexibility. Use it to your advantage:
Review your savings annually
Work with a financial professional who understands your goals
Reassess risk tolerance as you age
Annuities and IULs from The Policy Shop can help provide stable, tax-advantaged income later in life.
Quick Checklist: Retirement Plan Must-Haves for Single Women
- ✅ Emergency fund with 6 months’ expenses
- ✅ Fully funded Roth IRA or Traditional IRA
- ✅ Health savings account (HSA) if eligible
- ✅ Fixed or indexed annuity for guaranteed income
- ✅ Living benefits in your life insurance policy
FAQs
When should single women start saving for retirement?
Ideally in your 20s or 30s, but it’s never too late to start. Compound interest works best the earlier you begin.
What retirement accounts are best for single women?
A combination of IRAs, 401(k)s, and annuities gives flexibility and tax advantages. Roth IRAs are especially powerful for younger savers.
Can I open an IRA without a job?
You need earned income to contribute to an IRA, but spousal IRAs or annuities might be alternatives if you have other sources of income.
Final Thought: You Deserve Financial Independence
Whether you stay single forever or simply want a retirement strategy that doesn’t rely on someone else, you have the power to shape your financial future. Start small, stay consistent, and seek out tools that align with your goals.
Visit The Policy Shop to learn how single women can secure guaranteed retirement income today.