Retirement is a big deal for anybody, and that's especially true for single
Retirement is a big deal for anybody, and that's especially true for single

people who may be retiring with just one income and who may have
people who may be retiring with just one income and who may have

built up a nest egg solely off their own savings. So,
built up a nest egg solely off their own savings. So,

we know that single people can and do retire comfortably. In fact,
we know that single people can and do retire comfortably. In fact,

one quarter of people over age 60 are living alone in their household,
one quarter of people over age 60 are living alone in their household,

and that number is slightly higher for women, and that's, of course,
and that number is slightly higher for women, and that's, of course,

due to women's longevity. So what we're going to talk about here is
due to women's longevity. So what we're going to talk about here is

retirement for single people. First, we'll go over some averages to give
retirement for single people. First, we'll go over some averages to give

you a rough idea of what the landscape looks like for single people,
you a rough idea of what the landscape looks like for single people,

then we'll get into how much money you might need as you go
then we'll get into how much money you might need as you go

into retirement, then we'll talk about some tips that can help improve the
into retirement, then we'll talk about some tips that can help improve the

chances of retiring comfortably. Let's start with the average retirement
chances of retiring comfortably. Let's start with the average retirement

income for single people. So it's $42,000 on average for an individual in
income for single people. So it's $42,000 on average for an individual in

retirement, and that comes from the US Census Bureau. The median is a
retirement, and that comes from the US Census Bureau. The median is a

little bit lower at $27,000. So a friendly reminder of how this works:
little bit lower at $27,000. So a friendly reminder of how this works:

The median is the middle, so if you line up all of the
The median is the middle, so if you line up all of the

survey results, people telling you what their income is, for example,
survey results, people telling you what their income is, for example,

that arrow points at the middle observation, which would give us the median
that arrow points at the middle observation, which would give us the median

down at the bottom. But if we go to the average,
down at the bottom. But if we go to the average,

that is going to get skewed by, in this case, wealthy people,
that is going to get skewed by, in this case, wealthy people,

for example, they have a very high income. When it comes to Social
for example, they have a very high income. When it comes to Social

Security, the average is about $1,500 a month or $18,000 per year.Your level
Security, the average is about $1,500 a month or $18,000 per year.Your level

depends, of course on your earnings, if you had higher earnings during your
depends, of course on your earnings, if you had higher earnings during your

working years, then you tend to potentially have a bigger benefit than that,
working years, then you tend to potentially have a bigger benefit than that,

and it could be lower, and then of course, your claiming age is
and it could be lower, and then of course, your claiming age is

also an important thing. If you claim early at age 62,
also an important thing. If you claim early at age 62,

you get a reduced benefit. That's likely to bring down the amount you
you get a reduced benefit. That's likely to bring down the amount you

get. Next, we have pensions, some people get an income from a job
get. Next, we have pensions, some people get an income from a job

they worked at. That might be in the public sector as a teacher,
they worked at. That might be in the public sector as a teacher,

a firefighter, that sort of thing, or even in the private sector,
a firefighter, that sort of thing, or even in the private sector,

you could have a pension from your job, and those incomes just are
you could have a pension from your job, and those incomes just are

all over the board, it could be high, it could be low,
all over the board, it could be high, it could be low,

but these are different sources of income that people might have in retirement.
but these are different sources of income that people might have in retirement.

This is just a friendly reminder that this is just one video and
This is just a friendly reminder that this is just one video and

it may cover some interesting information, but it's not specific to you
it may cover some interesting information, but it's not specific to you

so I hope you'll do a lot more research, hopefully check with some
so I hope you'll do a lot more research, hopefully check with some

professionals and get some individualized advice, and that way you can improve
professionals and get some individualized advice, and that way you can improve

the chances of things going well for you. So now let's talk about
the chances of things going well for you. So now let's talk about

how much you might need as you go into retirement. Unfortunately,
how much you might need as you go into retirement. Unfortunately,

there's no single answer on what you need because it depends.
there's no single answer on what you need because it depends.

So the first step is to figure out what sort of income you're
So the first step is to figure out what sort of income you're

going to need, and I've got other videos on that, I'll put links
going to need, and I've got other videos on that, I'll put links

in the description to get you some more information, but you can look
in the description to get you some more information, but you can look

at replacing a portion of your income, or you can just say,
at replacing a portion of your income, or you can just say,

I want X amount of dollars per year, or you can go with
I want X amount of dollars per year, or you can go with

other approaches, but first we need to know how much income you are
other approaches, but first we need to know how much income you are

hoping for. Next, we tally up your income sources, so that might be
hoping for. Next, we tally up your income sources, so that might be

some guaranteed income that comes in from Social Security, for example,
some guaranteed income that comes in from Social Security, for example,

or from your pension at your workplace, but that forms a base of
or from your pension at your workplace, but that forms a base of

income and that might or might not cover what you need.
income and that might or might not cover what you need.

But it gives us a base and then if we need to fill
But it gives us a base and then if we need to fill

that in, we can supplement withdrawals from your retirement savings, so
that in, we can supplement withdrawals from your retirement savings, so

that might be out of your IRA, your 401, 403, these accounts that
that might be out of your IRA, your 401, 403, these accounts that

you have built up over time can provide supplemental income to help fill
you have built up over time can provide supplemental income to help fill

the gap between that guaranteed income you get and the amount you actually
the gap between that guaranteed income you get and the amount you actually

want to spend. There are a number of ways to figure out how
want to spend. There are a number of ways to figure out how

much to withdraw and to set up different strategies, there might be bucking
much to withdraw and to set up different strategies, there might be bucking

strategies, there might be withdrawal strategies like the 4% rule. Or if
strategies, there might be withdrawal strategies like the 4% rule. Or if

you don't like that, make it the 3% rule to be safer,
you don't like that, make it the 3% rule to be safer,

or take out more if you think that's not enough and you're selling
or take out more if you think that's not enough and you're selling

yourself short. Ultimately, there are a number of ways to approach this,
yourself short. Ultimately, there are a number of ways to approach this,

so you just pick one that works well for you, and again,
so you just pick one that works well for you, and again,

I can point you to some resources on figuring that out.
I can point you to some resources on figuring that out.

And finally, you will want to look at taxes and inflation,
And finally, you will want to look at taxes and inflation,

so during your retirement years, it's reasonable to assume that prices may
so during your retirement years, it's reasonable to assume that prices may

increase on many of the things you buy, so we want your income
increase on many of the things you buy, so we want your income

to be able to increase as well, Social Security typically does rise,
to be able to increase as well, Social Security typically does rise,

but maybe not at the same rate as the things you're buying,
but maybe not at the same rate as the things you're buying,

so your withdrawals may need to account for that. Plus we've got taxes.
so your withdrawals may need to account for that. Plus we've got taxes.

You typically will owe taxes if you're taking distributions or you're taking
You typically will owe taxes if you're taking distributions or you're taking

withdrawals from pre tax retirement accounts. If you have a pension that
withdrawals from pre tax retirement accounts. If you have a pension that

might be taxable as well. We just want to look at all of
might be taxable as well. We just want to look at all of

these things and figure out what your ultimate money left over to spend
these things and figure out what your ultimate money left over to spend

each month is going to be. For an over simplified example,
each month is going to be. For an over simplified example,

let's just look at Jane Doe. She's 60 years old, she's single,
let's just look at Jane Doe. She's 60 years old, she's single,

she wants to retire in about five years, she makes about 80,000 a
she wants to retire in about five years, she makes about 80,000 a

year and has 700,000. A lot of people retire with less than that,
year and has 700,000. A lot of people retire with less than that,

a lot of people retire with more. I'm going to bring up my
a lot of people retire with more. I'm going to bring up my

financial planning software that I use with clients, and we'll just go over
financial planning software that I use with clients, and we'll just go over

kind of why there's no single answer on how much you need.
kind of why there's no single answer on how much you need.

Now, if you can tell me exactly how long you'll live and what
Now, if you can tell me exactly how long you'll live and what

the markets will do and what inflation will look like, we can tell
the markets will do and what inflation will look like, we can tell

you exactly what you'll need. But there are a lot of unknowns, so
you exactly what you'll need. But there are a lot of unknowns, so

a lot of times we start with a probability of success and I'll
a lot of times we start with a probability of success and I'll

go over what that means, and then we look at little tweaks and
go over what that means, and then we look at little tweaks and

how different changes might affect that probability of success, so working
how different changes might affect that probability of success, so working

an extra year might bring her from... Let's say 75%
an extra year might bring her from... Let's say 75%

to 84% likely to succeed. Now, success and failure are pretty complicated.
to 84% likely to succeed. Now, success and failure are pretty complicated.

They don't necessarily mean that you go completely broke, but you may need
They don't necessarily mean that you go completely broke, but you may need

to make some adjustments, so let's talk about what does the success mean?
to make some adjustments, so let's talk about what does the success mean?

We, again, cannot predict the future, so we say, Let's look back and
We, again, cannot predict the future, so we say, Let's look back and

say, You get dealt 1,000 hands. You're playing a game of cards and
say, You get dealt 1,000 hands. You're playing a game of cards and

you get 1,000 hands. Some of those are good and some of those
you get 1,000 hands. Some of those are good and some of those

are bad, so the very good ones tend to be up here,
are bad, so the very good ones tend to be up here,

near the top. And you actually end up with a lot of money
near the top. And you actually end up with a lot of money

left over. Some of them are not as good and you end up
left over. Some of them are not as good and you end up

running out of money early. The median is, again, that one that's right
running out of money early. The median is, again, that one that's right

in the middle when we line them up in order for best to
in the middle when we line them up in order for best to

worst. And so you might say, you're probably not going to get the
worst. And so you might say, you're probably not going to get the

best, you're probably not going to get the worst, although anything is possible.
best, you're probably not going to get the worst, although anything is possible.

So that's how we go with this likelihood of success.
So that's how we go with this likelihood of success.

Now, maybe she doesn't want to work an extra year, so we can
Now, maybe she doesn't want to work an extra year, so we can

look at different ways of accomplishing things here.
look at different ways of accomplishing things here.

By the way, we've built in some long term care in case she
By the way, we've built in some long term care in case she

does get sick and needs that at the end of life.
does get sick and needs that at the end of life.

She's looking to spend about 4,000 a month, that's after some health care
She's looking to spend about 4,000 a month, that's after some health care

costs that are going to inflate each year, and she's saving a decent
costs that are going to inflate each year, and she's saving a decent

amount in some 401K and taxable accounts. Let's say she goes ahead and
amount in some 401K and taxable accounts. Let's say she goes ahead and

maxes out that Roth, is it going to make a big difference?
maxes out that Roth, is it going to make a big difference?

Not really, 'cause she only has five years left. So what we do
Not really, 'cause she only has five years left. So what we do

here is we start looking at all of these different variables and playing
here is we start looking at all of these different variables and playing

with the pieces and figuring out what does it take to make her
with the pieces and figuring out what does it take to make her

successful at her retirement, or at least successful enough that she's comfortable
successful at her retirement, or at least successful enough that she's comfortable

making that transition. So here are some tips to improve your chances.
making that transition. So here are some tips to improve your chances.

The first is to plan for long term care. If you're living on
The first is to plan for long term care. If you're living on

your own, you don't have somebody in the house who can help you
your own, you don't have somebody in the house who can help you

do things, and it's arguable if even a couple is capable of managing
do things, and it's arguable if even a couple is capable of managing

this on their own... I mean, if you think about a couple,
this on their own... I mean, if you think about a couple,

is one of the people physically able to move the other person around
is one of the people physically able to move the other person around

and do they have the skills to provide health care, and the time
and do they have the skills to provide health care, and the time

and the energy, frankly, to provide all that type of care?
and the energy, frankly, to provide all that type of care?

So it's important for everybody, but it's especially important for single
So it's important for everybody, but it's especially important for single

people to plan for this care. So you can look at getting insurance,
people to plan for this care. So you can look at getting insurance,

you can look at budgeting for some costs, like we showed you in
you can look at budgeting for some costs, like we showed you in

the software, you might want to budget for a much bigger number if
the software, you might want to budget for a much bigger number if

you go into memory care or something like that with 24 hour supervision,
you go into memory care or something like that with 24 hour supervision,

it can get really expensive quickly. And you can explore different living
it can get really expensive quickly. And you can explore different living

arrangements, maybe doing things with friends or certain communities that
arrangements, maybe doing things with friends or certain communities that

might be a good fit for you. Next is to avoid leaving money
might be a good fit for you. Next is to avoid leaving money

on the table so if you were previously married and your spouse passed
on the table so if you were previously married and your spouse passed

away or you've been divorced, you may be eligible for benefits.
away or you've been divorced, you may be eligible for benefits.

That's maybe from Social Security, you can potentially get a survivor's
That's maybe from Social Security, you can potentially get a survivor's

benefit, or if you were married for at least 10 years and you've
benefit, or if you were married for at least 10 years and you've

been divorced, you can potentially get spousal benefits on your ex spouse's
been divorced, you can potentially get spousal benefits on your ex spouse's

work record. It's just important to explore all of these to see if
work record. It's just important to explore all of these to see if

there are any resources available for you. Next is to make a plan,
there are any resources available for you. Next is to make a plan,

and I am of course biased as a financial planner, but I think
and I am of course biased as a financial planner, but I think

it is really helpful to go through the process, and the main goal
it is really helpful to go through the process, and the main goal

isn't to get a big document that tells you what your financial plan
isn't to get a big document that tells you what your financial plan

is. Instead, really, the benefit is going through that process and learning
is. Instead, really, the benefit is going through that process and learning

a lot about your finances as you do it, and in that process,
a lot about your finances as you do it, and in that process,

you get an idea of what the risks are, how you're doing,
you get an idea of what the risks are, how you're doing,

you might get confidence and clarity on whether or not you can go
you might get confidence and clarity on whether or not you can go

ahead and retire, if you should do certain things or not.
ahead and retire, if you should do certain things or not.

It's just a very valuable process for a lot of people,
It's just a very valuable process for a lot of people,

but I'll leave that for you to decide. If you found this video
but I'll leave that for you to decide. If you found this video

helpful, please leave a quick thumbs up. That gives me feedback that this
helpful, please leave a quick thumbs up. That gives me feedback that this

is something you might enjoy more of, so thanks for watching and take
is something you might enjoy more of, so thanks for watching and take

care.
care.