The Society of Actuaries (SOA) Research Institute’s Aging and Retirement Program includes post-retirement risk consumer research and consumer education on meeting individual needs. The SOA studies demographics, how people plan for retirement, and what needs are unmet. A look at different population segments found that family plays an important role in helping people plan for retirement and supporting them during retirement. Solo-agers, mostly women, do not have family to help and need other options. The SOA has partnered with the Women’s Institute for a Secure Retirement (WISER) to understand and provide information to support this growing segment of the population.
The SOA has produced a series of guides designed to assist solo-agers with key financial and retirement decisions, along with survey findings to help understand the situation of their growing number. Solo-agers are individuals who, as they grow older, navigate life and retirement without the traditional support network of close family members or partners. This may be the continuation of a lifelong reality or the result of life changes such as divorce, death of a spouse, estrangement, or adult children moving away. With declining marriage rates and fewer children, the percentage of the population who are solo agers is increasingly greater than in earlier generations.
The consumer survey includes responses from Americans aged 50 or older who identify as solo-agers. It provides insights into aging, financial preparedness, use of technology, physical and cognitive health, and the role of support networks. With these findings and the newly published guides, the SOA Research Institute aims to gain a deeper understanding of the unique challenges facing solo-agers and to help them achieve more financially secure and satisfying lives. This article will also include references to additional resources.
Key Findings from the Survey
Support Networks
- 35% of the solo-agers surveyed report often feeling a lack of companionship. Only 26% are very confident that their current support network (including friends, family and neighbors) will be able to provide them with support as they age.
- Focusing on their support networks, the majority of solo-agers is placing a priority on nurturing existing networks (86%) and growing them (71%).
- Common strategies include spending time with neighbors, coworkers, or friends (46%), connecting on social media (34%), continuing to work (29%), and getting a pet (27%).
Concerns About Physical and Cognitive Changes
- 57% of the solo-agers surveyed are somewhat concerned and 21% are very concerned about potential changes to their physical and cognitive abilities.
- In preparing for changes, 64% feel somewhat prepared, while 22% feel extremely prepared.
- Many are currently taking steps, such as designating an emergency contact (65%), setting up memory aids (40%), and authorizing a medical (37%) or financial (31%) Power of Attorney.
Assistance
- An overwhelming majority of the surveyed solo-agers, whose average age was 67 years, reported needing the least assistance with cooking, shopping, managing medical care, and finances. The tasks they are most likely to rely on others for are lawn and yard care and automotive maintenance.
Embracing Technology
- More solo-agers are embracing technology in their daily lives, including sending and receiving text messages (90%), using social media (76%), and using banking and financial apps to manage their finances (73%). Beyond everyday tasks, technology has a very important role in helping them research topics of interest (64%), stay up to date on current events (63%), and communicate with others (63%).
The Content of the Resource Guides
This resource series is intended to help solo-agers with decision-making on a wide range of aging issues. Readers may benefit from the entire series or selecting individual topics of interest. Although focused on issues that may particularly impact solo-agers, this is valuable information for anyone.
The following topics in the series are available for download:
“The Solo-Agers Decision Guide: Introduction” provides an introduction to the series and overview of the issues addressed.
“Managing Your Finances” helps with understanding and planning for future financial needs and resources.
“Selecting a Healthcare Proxy and Caregivers” deals with unexpected health issues and preparing for needed support.
“Preparing for Changing Housing Needs" considers issues when a housing change becomes necessary for health or other reasons.
“Getting Your Legal Documents and Support in Order” addresses how to understand and organize applicable legal documents.
“Planning for Physical and Cognitive Change” assists with preparing for possible changes in physical and cognitive ability and support needed.
“Developing Your Support Network” gives guidelines for establishing and nurturing support networks to help with aging needs.
“Using Technology Aids” offers ways that advances in technology and devices can provide beneficial support for aging.
In this article, I provide more detail on select topics from the resource guides.
Managing Your Finances
For solo-agers, the big question is who will be your “go-to” resource for financial matters as you get older?
Managing finances isn’t ever an easy task, but it can become more difficult as you get older. Widowhood or divorce may put you suddenly in charge of financial decisions you are unprepared for. Even if you have handled your finances quite well for many years, these tasks can gradually become more difficult to manage if you experience cognitive decline. Without close family to help you with your finances, you need to plan for a future in which you may be relying on friends, other relatives, or paid professionals for this service. For information to help you with these tasks, look at “Thinking Ahead: A Guide for Keeping Your Money Safe as You Age.”
Do you have a plan for managing your finances as you age?
Having a plan for managing one’s finances is an important step for all older adults, but even more so for solo-agers because they don’t have a family safety net. If you don’t currently have a financial plan or haven’t arranged for future help, you’re not alone. Many people procrastinate thinking about their future finances. Survey research conducted by the Society of Actuaries shows that only 57 percent of retirees and 36 percent of pre-retirees say they have a plan for how much money they will spend in retirement and where that money will come from. AARP research suggests that less than 1/3 of solo-agers under age 70 have someone who could help with daily money management or investments.
A financial plan isn’t just about the money, but also about simplifying your future financial needs, and planning for whom you will trust to manage your finances when you are no longer able to do so.
Preparing for Future Housing Needs
Housing is the largest expense for many older Americans, and it is a contributor to happiness. A huge decision is where you want to live and how you will adapt to another location. As a solo-ager, you have freedom to decide, considering cost, proximity to friends, location and whatever is important to you. As you plan for limitations, you will want to consider access to support services, community resources, medical providers, transportation, and accessibility.
Note: The guide provides information on physical and cognitive limitations and support systems. It includes a checklist to help identify whether a place to live will fit your needs.
Planning for Physical and Cognitive Change
Planning for change is a key part of older age planning.
The “Late in Life Decision Guide” defines three stages of aging by the type of help needed and what life is like in each stage:
- You live independently with no assistance.
- You live independently but require regular assistance.
- You can no longer live independently.
As a first step in planning, think about the future.
- What aspects of your life can you manage on your own as you age?
- What aspects will you need help with?
- How will physical and cognitive ability change and when?
A comprehensive personal plan includes strategies for managing changing needs linked to physical or cognitive decline. The good news is that maintaining healthy exercise and diet habits, being socially active, engaging in mentally stimulating activities, and taking steps to manage future functional needs will increase the chances that you can continue to be self-reliant in old age.
Recognizing Physical Changes with Aging
Older adults today are living longer and healthier lives than ever before. Medications are available to treat many illnesses. Medical procedures, such as joint replacements and cataract surgeries, have allowed seniors to remain active and independent for longer. However, you can expect to experience natural aging changes, including increased risk of various diseases and conditions including:
- Loss of muscle and physical strength.
- Loss of sight and hearing.
- Changes in sleep patterns.
- Lower energy.
- Diseases and conditions such as cancer, arthritis, heart disease, kidney disease, neurological disorders, osteoporosis, stroke, COPD, diabetes, depression, etc.
Recognizing Cognitive Changes with Aging
Many people find the prospect of cognitive decline to be much scarier than physical aging symptoms. These cognitive changes may be relatively minor and will not prevent normal activities. However, if they worsen, there may come a time when you will no longer be able to safely drive, shop, cook, manage finances, or conduct various activities of daily living. Since you cannot anticipate these changes, make a plan that will take care of your needs either way.
Symptoms of cognitive decline include:
- Forgetting things more often.
- Losing your train of thought or the thread of conversations.
- Getting lost or feeling overwhelmed in familiar places.
- Decline in planning and organizational skills.
- Failure to open mail, pay bills and pay taxes.
- Difficulty understanding instructions.
- Decreased numeric and problem-solving ability.
- Your family and friends make note of changes.
Steps to Take Now
What can you do now to prepare for a future in which you have more limitations? The National Institute on Aging suggests that you should do the following, ideally before you are experiencing problems:
- Maintain your physical and cognitive health.
- Simplify your everyday tasks.
- Improve your home safety.
- Strengthen your support system.
- Take care of financial and legal matters.
Conclusion
There are a growing number of solo-agers in the United States. They need support normally provided by family and there are a variety of routes to achieving that support. The SOA’s research provides insights into their perspectives and the SOA’s resources provide helpful information.
Additional Resources
“Retirement Success and Elder Orphans” by Anna Rappaport. An essay from the 2019 Family Structure, Roles and Dynamics Linked to Retirement Security call for essays.
The Federal government has an elder care locator.
Area Agencies on Aging are a good place to start to locate help. Here is information on Illinois.
This article is provided for informational and educational purposes only. Neither the Society of Actuaries nor the respective authors’ employers make any endorsement, representation or guarantee with regard to any content, and disclaim any liability in connection with the use or misuse of any information provided herein. This article should not be construed as professional or financial advice. Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries or the respective authors’ employers.
Anna Rappaport, FSA, MAAA, is president of Anna Rappaport Consulting. She can be reached at Anna.rappaport@gmail.com.