Business Advice for Singles
Not so long ago, I read an interesting article in the New York Life INtouch newsletter that discusses how single people's needs are different when it comes to planning for retirement.

I always said that being single is not as easy and not as obvious as people may think. Often, married people say "how fun, you're single, you get to keep and do whatever you want with your salary and enjoy life freely." And I often reply that that is a complete myth. While singles may not have to report back to anyone about what they do or how they spend their money, they plainly and simply have less money to play with and the same, if not higher, expenses to bear.

How is that possible? Well, just look at the ratio of income and expenses that they have available for themselves. For example, if you're traveling, as a single you actually have to pay a supplement to stay in hotels or to go on a cruise, while couples and families can share the cost. Even those free time-share visits are often only reserved for couples.

Married people also benefit from dual incomes, more easily available health plans (either via their employer or as a family), more options to save in 401k plans, IRAs, two social security payments etc. The newsletter addresses all of these items and to my point, couples and families often have twice as much money coming in, yet about the same expenses going out.

If you're living in a house or an apartment or a condo, whether you're single or not, you still have to pay the rent, mortgage, property taxes, homeowner's fees, utilities, insurance etc. Even the cost of food is cheaper when you buy in bulk for several members of a household than just for yourself. Or, as a single, you may have to go out and therefore spend more money on a meal than you would on a home-cooked dinner. And we haven't even touched upon all the discounts households get when applying together for insurance, benefits, getting various credits and on and on.

This brings us to the conclusion that as a single person, you need to save more for retirement than if you were married to enjoy the same quality of life.

So for those of you who have married friends who envy your situation, you may want to remind them that the grass is not greener on your side. You actually need more fertilizer to keep it green!

 

By Stella Belmar.



Copyright  ©2011 by Stella Singles LLC. All rights reserved. 

 

Copyright © 2010-2015 by Stella Singles LLC. All rights reserved.

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