The U.S. saw a significant increase in birth rates from 1946 to 1964, known as the baby boomer generation. Since then, the fertility rate has declined significantly, especially during the past two decades.
The nation’s birth rate is now at historically low levels, according to the Centers for Disease Control and Prevention. Some young adults say high costs are holding them back, while others fear the changing world. Many are putting their careers first, while some people simply don’t want children.
As more people choose to live a single and childless life, this question becomes inevitable: What will happen when I need help later in life?
Experts on geriatrics refer to single seniors as elder orphans (also known as solo agers).
Elder orphans are older adults who live without family support. They lack a spouse, partner or nearby children to assist them. Living independently, they may feel isolated and vulnerable. Baby boomers make up a sizable portion of this group. In 2022, almost 16 million people over 50 were living alone, according to the U.S. Census Bureau.
So how can elder orphans plan for their future while maintaining quality of life in a safe environment?
Build a team of experts
Coordinate your team by developing relationships with your financial advisor, attorney, and CPA. Your professional team will want to understand your goals and objectives, helping you plan accordingly while keeping a watchful eye on the financial decisions you are making. Discuss your concerns and desires now, so if you become incapacitated, your plan for care is in place.
You can also consider consulting a geriatric care manager. Geriatric care managers specialize in elder care and can help you address health, financial, and housing concerns. They can also support coordinating access to caregiving and other services. Geriatric care managers balance seniors’ physical, emotional, and mental needs with quality of life.
Plan ahead
While you can, address the details of your life, organize your finances, and plan for the possibility of decreased capacity.
Work with a financial advisor to determine your net worth (assets minus liabilities).
This will form the foundation of your long-term planning. Consider what care you can afford and whether your current lifestyle is sustainable in later years. Ask yourself, can I afford to stay in my home with in-home care?
And will I need to downsize, or move to a senior community or assisted living facility?
Understand your options now to reduce stress later.
Update documents
Creating an estate plan is important for everyone, but especially for seniors without children. Proper planning ensures that you are taken care of if your health declines and your assets are distributed according to your wishes. With an estate plan in place, your estate avoids probate, designates decision-makers, minimizes taxes, and ensures privacy.
Is your trust, will, power of attorney, and healthcare directive up to date? Review your existing documents to confirm that the planning still meets your objectives. If your estate planning is not in place or current, it may be time to meet with an estate planning attorney.
Discuss with the agent of your power of attorney (the person with the power to act on your behalf while you are alive) and successor trustee of your trust your desires, concerns, and fears should you become incapacitated. Share the contact information of your advisors, as well as where you store your estate planning binder and other pertinent information.
While you’re at it, share a copy of this policy with your support team. Then add a copy of the policy to your estate planning binder, so it is readily available if needed in the future and you are not at full capacity.
Planning funeral expenses
By making funeral decisions in advance, you have the control to choose the specific services, cost, and location of your interment. However, there are risks, such as the funeral home going out of business, and if you decide to move, the package may not be transferable to another funeral home.
Prioritize health
Managing your health is always a priority, especially as a senior. Adopt a healthy lifestyle by eating a well-balanced diet, exercising regularly, getting enough sleep, and avoiding smoking and excessive alcohol consumption.
Keep a current list of all the medications you take, along with the names and contact information of your doctors. Store this information in a secure place, such as your estate planning binder.
Stay connected
As you age, it is important to maintain a diverse social network, including friends of different ages. A strong network provides emotional support, oversight, and companionship, all of which benefit both your mental and physical well-being.
Engage with your community, nurture existing friendships, stay in touch with extended family, and connect with your neighbors. These relationships form a network of people who care about you and can assist you in times of need.
Being part of a supportive community is essential for receiving emotional support, practical help, and assistance as you age. It takes a village not only to raise a child—but also to care for aging adults. Nurture your village, plan for the future, organize your finances, and enjoy life to the fullest. Tomorrow may be your best day yet.
Distribution of this material is for educational and informational purposes only; this material should not be construed as an endorsement or solicitation by CAPTRUST, and it does not constitute personalized financial, investment, legal, or medical advice. Opinions expressed are those of the author and are subject to change.
Teri Parker is a certified financial planner and vice president for the Riverside office of CAPTRUST Financial Advisors. She has practiced financial planning and investment management since 2000. Contact her via email at Teri.parker@captrust.com.
