A “solo ager” is someone who finds themselves living far away from any relatives or close friends during retirement. Americans are becoming more and more likely to live alone, whether they are single, widowed, or divorced. Additionally, a large number of them are childless or have adult children who live far away, leaving them to more or less fend for themselves. If this describes you, there are a few financial considerations. The happiest retirees are usually people who have planned their retirement out carefully. This involves being ready for future legal and financial challenges. But, if you’re a “solo ager” with no close friends or relatives nearby, there are some problems specific to you that you should probably be aware of.
Who to Appoint to Make Financial Decisions
It can be more difficult to resolve some financial concerns when family is far away. This is because you need to locate trustworthy individuals to help you. Who will make decisions for you if you are incapable of doing so? It’s a challenging question, but it must be addressed. Appointing relatives and friends to the roles of executor and proxy may not be the wisest move. Still, they’re usually the first choice.
Before assigning someone one of these important roles, verify that you can rely on them. Tell them exactly what you need from them. To complete these roles, the right knowledge and skills could also be required. You should also ask yourself certain questions if you require a friend to serve as your executor or health care proxy; Do they possess the necessary time? Is it reasonable to believe they will live longer than you? Do they understand money matters? And, do you have the money to compensate them?
Have a Checklist and Other Legal Directives
Solo agers will, at the very least, require a living will outlining their preferences for treatment under various circumstances. A living will is essentially a written declaration of your preferences for medical care in the event that you are incapacitated and unable to make decisions for yourself. This may include deciding not to take actions that would extend your life. Treatments like CPR, a mechanical respirator, intravenous or tube feeding, dialysis, and so forth are a few examples.
In contrast, a healthcare proxy is a type of durable power of attorney that designates a specific individual to carry out your preferences and make medical choices in the event that you are unable to. These documents can be prepared with assistance from your lawyer, and you should also make sure your family is aware of them. It’s also a good idea to bring copies with you to the hospital if you are admitted, or to give copies to your doctor.
In all 50* states, you have the option to “express your wishes regarding medical treatment in terminal illness or injury situations, and to appoint someone to communicate for you in the event you cannot communicate for yourself.”
What Local Professional Resources Can You Use?
Professionals with qualifications in finance may take up roles typically held by family members. To handle legal matters, for instance, an elder law attorney could be a member of your team of experts. Next, to oversee the process of making healthcare decisions, a patient advocate or geriatric care manager may also be involved. And, to manage your finances, you should also hire the right type of financial expert. Additionally, you want to look for nearby friends or neighbors who are able to help you out when you need it.
Have a Financial Power of Attorney or Revocable Living Trust
Planning ahead is necessary for a future when you may become more vulnerable after reaching a particular age. Even though you feel comfortable and self-sufficient as a single adult now, things may not stay that way in the future. It’s true that there are safeguard in place if you didn’t plan ahead for these circumstances; someone will do it for you. However, we believe you should aim to prevent outsiders who aren’t financial professionals from handling your finances.
It’s likely that someone suggested you name a financial power of attorney to manage your money. But if you’re single, you could be better off* having a robust, revocable living trust that offers more freedom and privacy. Ultimately, it depends on your specific financial situation which choices are right for you.
*Sources: Right at Home, Kiplinger
