Financial Planning After Retirement: Solo vs. Couples

How Do Solo and Couple Retirements Differ?

Think of it this way: When you’re single in retirement, you’re like a one-person household trying to cover all the same costs of a two-person household. That creates some unique challenges but also some opportunities.

If You’re Retiring Solo:

• You’re on your own financially: Your income comes from what you saved and Social Security. That’s it.
• Everything costs more per person: You can’t split the rent, utilities, or car payments with anyone.
• Healthcare gets tricky: No spouse’s insurance to fall back on, and you’ll need to figure out Medicare on your own.
• You need backup plans: If the stock market tanks or you get sick, there’s no partner to help carry the load.
• Care costs more: If you need help later, you’ll likely pay for professional caregivers.

If You’re Retiring as a Couple:

• You can share costs: Two people, one mortgage payment. One car can work for both of you.
• You have more options with Social Security: There are strategies couples can use to get more money over their lifetimes.3
• You can tag-team: One person’s bad investment year might be offset by the other’s good choices.
• Built-in caregiver: Your spouse might be able to help care for you, saving thousands in professional care costs.
• Tax benefits: Filing jointly often saves money.

Getting the Most From Social Security

This is where things get really different between singles and couples. Social Security isn’t just a check, but a game of strategy. 

For Solo Retirees

Your Social Security timing is crucial because you only get one shot at this. Here’s what we tell people:

• Wait if you can: Every year you delay claiming (up to age 70) adds 8 percent to your monthly check. Forever.
• Do the math: If you’re healthy and your family tends to live long, waiting usually pays off.
• But don’t wait if you’re sick: If you have serious health problems, claiming early might make sense.
• You can’t use spousal benefits: This is just about your work record, period.

For Couples

Couples have way more options, and we find that that can be both good and confusing. Here are the basics:

• The lower earner can claim spousal benefits: This could be up to 50 percent of the higher earner’s full benefit.
• Survivor benefits matter: When one spouse dies, the survivor gets the higher of the two Social Security checks.
• Timing matters for both people: Often, the higher earner should wait until 70 while the lower earner claims earlier.

Here’s a quick comparison:

Healthcare and Long-Term Care Planning

Healthcare costs represent the largest variable expense in retirement. It comes with distinct challenges for single retirees versus couples. Here’s what we found:

Solo Retirees and Healthcare

When you’re on your own, healthcare planning gets more complicated:

• Medicare navigation: You’ll research all those Medicare options by yourself, and you’ll have no spouse’s employer plan to potentially stay on.
• Higher chance of needing care: 70 percent of people will need long-term care at some point.4 For singles, that usually means paying for it as opposed to leaning on your partner. Medicare generally does not cover custodial care — non-medical assistance with daily living activities like bathing or eating — when that’s the only care needed. This is often the largest uncovered cost for retirees.
• No built-in caregiver: Your spouse can’t help you to the bathroom or remember your medications.
• You need a healthcare team: Someone needs to be able to make medical decisions if you can’t.

Couple Healthcare Strategies:

• You can coordinate coverage: Maybe one person’s Medicare plan is better, or you can time when each person enrolls.
• Built-in caregiver: Your spouse, if they’re in good health, might be able to delay expensive professional care.
• Protect the healthy spouse: Long-term care planning can preserve money for whoever’s left.
• Share costs: Some insurance premiums and out-of-pocket costs can be shared.

According to the U.S. Department of Health and Human Services, 70 percent of people turning 65 will need long-term care, which will last an average of two years.5

Long-Term Care Costs (Annual):

To give you a picture of how much long-term care costs, here are annual estimates for different types of care services.6

• Home health aide: $77,792
• Adult day health care: $26,000
• Assisted living facility: $70,800
• Private nursing home room: $127,750

Making Your Money Last: Investment and Tax Basics

Let’s talk about making your retirement savings last. This is where being single or married really changes your strategy.

Investment Basics Everyone Should Know

Asset Allocation is just a fancy way of saying “how you divide up your money.” You’ve got stocks (owning pieces of companies), bonds (lending money to companies or the government), and cash. Most people move toward safer investments as they get older, which we think is a good strategy.

Withdrawal Rate is how much of your savings you spend each year. If you have $500,000 and spend $20,000 annually, that’s a 4 percent withdrawal rate. Spend too much too fast, and you’ll run out of money. Don’t forget inflation — even at a modest 3% annually, prices double in about 24 years. That’s why keeping some growth investments is critical, even in retirement.

Required Minimum Distributions (RMDs) are the government’s way of making sure you eventually pay taxes on retirement accounts. Starting at age 73, you have to withdraw a certain amount each year.7

Solo Retiree Investment Strategy

When you’re single, you need to be more careful because there’s less of a safety net. Here are our suggestions:

• Play it safer: Put 60 to 70 percent in bonds and dividend-paying stocks. These pay more predictable income than growth stocks.
• Keep some growth: Put 20 to 30 percent in growth investments to help your money keep up with inflation.
• Have more cash: Keep 10 to 15 percent in easily accessible savings for emergencies.
• Withdraw less: Stick to 3 to 3.5 percent annual withdrawals instead of the traditional 4 percent. With $500,000, that means living on $15,000 to $17,500 per year instead of $20,000.

The Bucket Strategy: Think of your money in three buckets – immediate needs (0 to 2 years) in cash, medium-term needs (3 to 7 years) in conservative investments, and long-term needs (8+ years) in growth investments.

Couple Investment Strategy

Couples can take more risks because they have more flexibility:

• Coordinate your accounts: Put bonds in tax-deferred accounts and stocks in taxable accounts for better tax efficiency.
• Split your risk: One spouse might invest aggressively while the other plays it safe.
• Withdraw smarter: Coordinate withdrawals to manage tax brackets and keep Medicare premiums lower.
• Withdraw a bit more: Couples can often safely withdraw 3.5 to 4 percent annually to manage tax brackets and Medicare premium thresholds.

Tax Differences

Singles face steeper taxes: Single people hit higher tax brackets at lower income levels than married couples.

Couples get tax breaks: The standard deduction for married filing jointly is double what singles get. Plus, couples can shift income between spouses to stay in lower tax brackets.

Here’s an example: At $75,000 income, a single retiree pays about $9,739 in federal taxes while a married couple pays $6,589. That’s a $3,150 difference every year.

Filing status can also affect Medicare Part B and Part D premiums. Higher joint or single incomes can trigger IRMAA (Income-Related Monthly Adjustment Amount) surcharges, so coordinating withdrawals and conversions can help manage these thresholds.

Smart tax moves for everyone:

• Roth conversions: Convert traditional IRA money to Roth during low-income years
• Charitable giving: If you’re over 71, donate directly from your IRA to charity
• Tax-loss harvesting: Sell losing investments to offset gains

Estate Planning Essentials

Estate planning is about two things: what happens to your stuff when you die, and who makes decisions if you can’t. Singles and couples face very different challenges here.

>>Read more: LegalZoom Estate Planning Review

Estate Planning Basics

Everyone needs these four documents:

• Will: Says who gets your stuff
• Durable Power of Attorney: Allows someone to handle your finances if you can’t
• Healthcare Power of Attorney: Enables someone to make medical decisions for you
• Living Will: Tells doctors what you want for end-of-life care

It’s also important to address digital assets such as online financial accounts, social media profiles, cryptocurrency wallets, and photo libraries to ensure they are accessible and managed according to your wishes.

Probate is the court process that validates your will. It’s slow and expensive, which is why some people use trusts to avoid it.

Estate taxes only hit really wealthy people. We’re talking $13.99 million in 2025.8 Most families don’t need to worry about federal estate taxes, though some states have their own rules.

Solo Retiree Estate Planning

When you’re single, estate planning is both simpler and more complicated:

Simpler because:

• No need to coordinate with a spouse
• Clearer decision-making
• More straightforward asset distribution

More complicated because:

• You need to pick someone trustworthy to handle everything
• You need backup plans since there’s no automatic spouse
• You need someone to make healthcare decisions
• You need someone to pay bills if you become unable to

Couple Estate Planning

Married couples can transfer unlimited assets to each other without taxes, but this creates both opportunities and complexities:

Advanced strategies:

• QTIP Trusts: Provide income for your spouse while controlling who ultimately gets the money
• Bypass Trusts: Use both spouses’ estate tax exemptions
• Joint Trusts: Combine both spouses’ assets in one document

Important for couples:

• Plan for the surviving spouse’s income needs
• Protect assets if one spouse needs expensive long-term care
• Consider second-to-die life insurance for estate taxes or to equalize inheritances

Common Mistakes (and How to Avoid Them)

Solo Retiree Mistakes:

• Claiming Social Security too early without doing the math
• Not having enough emergency savings (singles need 12-18 months vs 6-12 for couples). The extra cushion for singles is important because they can’t rely on a partner’s income if unexpected expenses or market downturns occur.
• Ignoring long-term care planning despite a 70% chance of needing it
• Not naming backup decision-makers

Couple Mistakes:

• Poor coordination on retirement timing and Social Security
• One spouse knows nothing about finances (big problem when they’re left alone)
• Not planning for reduced survivor income
• Not talking about money and risk tolerance

Everyone Makes These Mistakes:

• Ignoring inflation over 25-40 year retirements
• Withdrawing too much too early
• Underestimating healthcare costs
• Not coordinating investment strategy with spending needs

Our recommendation: Meet with qualified professionals annually to catch problems before they become expensive mistakes.

The Bottom Line

Here’s what we want you to remember: retirement planning isn’t one-size-fits-all. Being single or married changes everything, from Social Security strategy to healthcare planning to how you invest your money.

Single retirees need to be more conservative and plan for higher costs, while couples can coordinate and optimize their strategies. Both situations have their challenges and opportunities.

The most important thing? Get professional help. The decisions you make in retirement have long-term consequences, and having experienced guides can make all the difference in your financial security.

We’ve seen too many families struggle because they tried to figure this out alone. Don’t be one of them. Whether you’re planning for yourself or helping aging parents, getting the right advice early can save thousands of dollars and a lot of stress down the road.