Retirement can be hard enough without doing it alone, study reveals

Most lack the funds they need for a single person’s retirement journey
APR 15, 2025

Making ends meet as a retired couple can be a challenge, but for those facing their later years as single person, there are additional pressures.

Almost four in ten single people planning their retirement say the suffer more financial strain or hardship compared to partnered peers rising to 44% among those under 40, according to a new Advisor Authority study from the Nationwide Retirement Institute.

Around half of single investors say they need $600,000 saved for their retirement but just 18% have at least $500K and only 23% have at least $250K. Almost one fifth are not sure they will ever be able to retire.

"Single investors are facing retirement challenges that their coupled counterparts are not, relying solely on their individual saving efforts compared to those with a second source of income from a partner," said Rona Guymon, senior vice president of Nationwide Annuity Distribution. "It's not surprising they believe they need to hit a 'magic number' in retirement to live comfortably. What's important to remember is that everyone's savings goal will vary based on more than just relationship status. It's good to have an attainable goal, but holistic financial planning with an advisor – who can help address single retirees' unique needs – is a more constructive way to think about achieving a secure retirement."

The study also found that single investors may be taking risks with their assets; only around half of those who say they have an asset protection strategy to mitigate market risks are using diversification of assets or non-correlation of assets in their portfolios. This compares to 62% of partnered respondents.

Those with such strategies favor keeping liquid assets such as cash on the sidelines, diversification, and bonds and/or dividend bearing stocks.

Respondents who work with an advisor prioritize asset protection against market risk, help to make better informed choices, and help to stay focused on long-term goals.

The study also polled advisors about how they tackle retirement planning for single clients.

Around half advise on when to take Social Security benefits and when to make withdrawals from retirement accounts. Another consideration is how to avoid the tax disadvantages that are not faced by spouses.

"Whether you're a single person planning for retirement or a financial professional working with one, it's important to recognize there are several elements of financial planning that may be different when retiring without a partner," Guymon said.

Guymon recommends addressing five key issues for single retirees including building a robust emergency fund, estate planning, long-term care, tax, and social isolation.

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