Many people assume retirement means being part of a couple or family. But many retirees live alone without a partner. While media often portrays this as lonely or costly, experts say being single in retirement can actually save money.
Gregg Cummings, a financial planner, says single retirees are like CEOs of their own plans. They make decisions faster and build strategies based on their own values. This approach is both cost-effective and empowering.
One clear saving is on groceries. Brett Daniel, founder of Daniel Safe Money Retirement Solutions, points out that a single person spends less on food than a couple.
Single retirees also pay less on energy and water bills. Using less electricity and water naturally lowers these costs.
Car expenses can be smaller too. When you travel alone, you spend less on gas, maintenance, and insurance.
Living alone often means “leaner living.” Without needing to coordinate with a partner’s schedule or spending habits, singles can live smaller, travel lighter, and spend more intentionally.
Housing costs may also be lower. Singles can choose to live with roommates or in co-housing communities, cutting housing expenses by up to half in some retirement-friendly towns.
Budgeting is simpler when you only have one income and one set of expenses. This clarity helps track spending and avoid lifestyle inflation.
There are some tax benefits too. While married couples get some advantages, single retirees over 65 get a higher standard deduction than younger singles. Singles may also fall into lower tax brackets, making it easier to convert traditional IRAs to Roth IRAs with lower taxes.
Single retirees might avoid the “marriage penalty” in taxes, paying less than married couples filing jointly. Filing as single also offers a more predictable tax structure year to year.
Healthcare costs for singles can be lower. Medicare premiums depend on income, and a single person usually pays half the cost of a couple. Also, singles have only their own healthcare expenses to cover, simplifying planning.
Without a partner’s income, your Medicare Adjusted Gross Income (MAGI) may be lower, reducing costs for Medicare Parts B and D. Singles also avoid the risk of a spouse’s long-term care needs.
If you want to keep working, part-time jobs can help. Single retirees can contribute to tax-deductible IRAs and even get employer 401(k) matches without working full time.
Finally, being single offers lifestyle freedom. You can live on a smaller budget, choose low-cost areas, and cut expenses more easily than couples. You can do with less if you want to, making retirement simpler and often cheaper.
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