| ||||||||||||
Singles with no kids, or no kids yet, have many of the same financial planning needs as everyone else. They have to save for retirement, maintain an emergency fund, and invest for growth while managing their tax liability.
But there are also some important differences — and opportunities — to consider.
For example, being child-free may enable SINKs to invest more aggressively or retire early. And, without college tuition or braces to budget for, they may have more disposable income available to travel or to support their favorite charitable causes.
Living solo, however, can also be more costly. Without a second income to help cover shared expenses, it may be more difficult to fully fund their 401(k) or delay their ability to purchase a home, an important steppingstone to building wealth. (Related: What to consider when buying your first home)
Other potential challenges that SINKs may encounter include higher future health care costs. For example, those with a smaller support system and no adult children to step in may be more likely to require assisted living as they age. (Learn more: Why singles pay more for health care)
“Being a SINK can certainly lead to the opportunity to supercharge their retirement savings and may afford them the opportunity to retire early,” said Jennifer Mann, vice president of Lenox Advisors in Chicago, Illinois. “However, I find that a lot of my clients who are single and childless do spend almost as much as their counterparts with children; they just spend on different things.”
To maximize their savings and reducing risk, she said, SINKs need a plan. That may include:
- Saving more for emergencies.
- Helping protect their paycheck with disability income insurance.
- Mitigating longevity risk with long-term care insurance coverage.
- Being tax-efficient with charitable giving.
The number of singles with no kids is on the rise
According to the Pew Research Center, 38 percent of U.S. adults ages 25 to 54 are neither married nor living with a partner, a figure that has risen sharply since 1990, when 29 percent indicated that they were unpartnered.1
It also found that 47 percent of U.S. adults younger than age 50 who are not already parents said they are unlikely to ever have children, up from 37 percent who said the same in 2018.2
The trend away from traditional family structures stems primarily from female-led households. (Related: Life's milestones and you)
A record 52 percent of American women were either unmarried, divorced, or widowed as of 2021, according to Wells Fargo. But the rising share of single women in recent years has been driven entirely by those who have never been married, researchers found.3
Single women face bigger financial risks
Being financially self-sufficient, whether by choice or by default, can have a disproportionate economic impact on women. Why?
- They outlive men by an average of roughly 5 years and, therefore, need more resources to sustain them.4
- They still earn an average of 84 percent of what men earn for the same job, even with the same level of education and work experience.5
- Women, on average, have less saved for retirement.6
Indeed, despite evidence that women allocate a larger percentage of their income for retirement and are more likely to participate in a 401(k) plan at work, they have far less socked away than their male counterparts. That’s largely attributed to lower lifetime earnings and the fact that women are more likely to experience career interruptions, taking time out of the workforce to care for aging parents and other loved ones. (Related: Why women should be financially selfish)
At age 55, the average median retirement savings is about $157,000 for men and $50,000 for women.6
“Money provides options and flexibility,” said Abbe Large, managing director of Lenox Advisors in New York City. “Planning is essential while you are young and healthy.”
Here’s a look at some of the most effective financial planning strategies that may help SINKs reach their goals and secure their future.
Build your emergency fund
Singles need a bigger financial safety net to protect themselves in the event that they should lose their job or experience an unexpected major expense.
An emergency fund provides the resources to sustain themselves without having to turn to high-interest credit cards, which only perpetuates a cycle of debt. (Learn more: Don’t have an emergency fund? Get one)
Many financial professionals recommend setting 3 to 6 months’ worth of living expenses (not gross income) aside in a liquid (accessible) interest-bearing account, such as a money market account.
But those with income instability and those who depend on a single income stream may need to set aside up to a year’s worth of living expenses for added financial security.
Protect your income
SINKs who are financially self-reliant should also take steps to protect their income.
During their working years, disability income insurance can help replace a portion of their income in the event that an injury or illness prevents them from working for an extended period. (Calculator: How much disability income insurance do I need?)
Later, during retirement, annuities can potentially be used to provide a guaranteed income stream for life, which may help ensure that the policyowner can cover their bills regardless of how well their investment portfolio performs or what happens with Social Security. (Related: Social Security claiming strategies for singles)
An annuity is a contract where, in exchange for a payment or a series of payments, an insurance company will provide a guaranteed stream of payments either immediately or at some point in the future.
Annuities come in many forms. Deferred annuities, for example, which are designed to pay out at a future date, offer tax-deferred growth.7 (Learn more: The pros and cons of annuities)
That said, annuities are not necessarily right for everyone. A financial professional can offer valuable guidance on financial products that may be a fit for your unique needs.
Consider long-term care coverage
Singles can also potentially help protect against longevity risk, or the chance that they may outlive their assets, by delaying Social Security benefits beyond their full retirement age to permanently increase the size of their monthly benefit. (Learn more: 4 simple ways to delay Social Security)
They can also consider purchasing long-term care insurance or a life insurance product with a long-term care rider.
Long-term care insurance helps pay for costs related to assisted living or residential care facilities, nursing homes, and home health care, which can be significant. According to 2024 data, the national median monthly cost of home health aides was $6,483, while home care services (assistance with non-medical daily living tasks) were $6,292. Assisted living facilities charged $5,900 per month, and nursing homes charged $9,277 for a semiprivate room, and $10,646 for a private room.8
Unbeknownst to many, Medicare, the federal health insurance program for seniors who are age 65 or older, typically does not cover expenses related to home health services, nursing homes, assisted living, or residential care facilities.
Long-term care insurance, of course, is not ideal for everyone. It is generally not recommended for those with minimal assets who are likely to qualify for Medicaid, the federal-state health insurance program for low-income and disabled Americans. Similarly, those with health issues or a family history of chronic illness may find that LTC coverage is cost prohibitive — or even unavailable.
Some hybrid whole life insurance policies also offer a long-term care rider, which provides a guaranteed death benefit, a cash value component that may grow, and a benefit to help cover long-term care if needed. Of course, accessing benefits during the policyowner’s lifetime reduces the cash value and death benefit and increases the chances that the policy will lapse, which may result in a tax bill if the policy terminates before the death of the insured.
“Single, successful women, in particular, need to make sure they protect their income with disability income insurance and make sure there is something in place to protect them from outliving their resources,” said Large. “Annuities, disability income insurance, and long-term care insurance can help protect their income stream and provide for assisted living costs as they age, which can help eliminate a source of stress.”
Donate tax-efficiently
A permanent life insurance policy can also be used to maximize your charitable giving, which is a bigger financial priority for many singles. (Learn more: Using life insurance for charity)
A 2023 analysis of estate plans completed on the FreeWill online platform shows that single men and women gave 60 percent of all bequest dollars committed to charity, while married individuals left 38 percent of all dollars bequeathed. The remaining 2 percent of bequests came from couples in a domestic partnership.9
For example, donors can designate a charity as the beneficiary of a permanent policy, such as whole life. In doing so, the donor retains ownership of the permanent policy and, therefore, has continued access to its cash value. This enables the donor to make a larger gift — of the death benefit — than of smaller gifts of cash. There is no annual charitable deduction available under this scenario but their estate will get a dollar-for-dollar reduction at their death. (Related: Understanding cash value)
Those wishing to make an immediate contribution might instead consider gifting an existing life insurance policy, especially one that is no longer needed. Instead of surrendering the policy, they can change the ownership and beneficiary to the charity. Annual cash gifts can continue to be made to the charity to pay any future premiums, generating a charitable deduction. (Related: Estate planning for single adults)
SINKs may also be able to leave a bigger financial legacy behind by naming a charity as the beneficiary of pretax assets, such as 401(k) accounts and traditional IRAs. Their estate would not owe income tax on the assets when they pass away and the charity would potentially receive that money tax-free.
Similarly, they might consider donating appreciated stocks or real estate that they have owned for more than a year, which may enable them to avoid the capital gains tax and effectively gift up to 20 percent more than they would by selling the asset and donating the proceeds.
An estate planning attorney and CPA can help you determine how best to realize their charitable intent.
Conclusion
Singles with no kids are a rapidly growing demographic. While many relish their autonomy and the role they play as sole provider, financial professionals say SINKs should also be mindful of the financial challenges they may face.
By maintaining an oversized emergency fund and purchasing protection products, such as annuities, long-term care insurance, and life insurance coverage, they can potentially reduce risk so they can focus on their other financial objectives, such as enjoying a stress-free retirement.
Discover more from MassMutual…
Estate planning: 6 big mistakes you might be making
How can an annuity work for your retirement goals?
Need a financial professional? Find one here
________________________________________
1 Pew Research Center, “Rising Share of U.S. Adults Are Living Without a Spouse or Partner,” Oct. 5, 2021.
2 Pew Research Center, “The Experiences of U.S. Adults Who Don’t Have Children,” July 25, 2024.
3 Wells Fargo, “Party of One: How Single Women Stack Up in the U.S. Economy,” March 8, 2023.
4 Centers for Disease Control and Prevention, “Mortality in the United States, 2023,” December 2024.
5 Pew Research Center, “Gender pay gap in U.S. has narrowed slightly over two decades,” March 4, 2025.
6 GOBanking Rates, “The Average Retirement Age for Men vs. Women in 2024,” July 29, 2024.
7 Annuities do not provide any additional tax deferral if purchased in a qualified plan type, such as an IRA. An annuity purchased under a qualified plan should be done for the benefits offered under the annuity.
8 CareScout/Genworth, “Monthly median costs: USA — National (2024).”
9 FreeWill, “2023 Planning Giving Report.”
