Single People May Have Unique Retirement Planning Needs | Law Firm Newswire

Single People May Have Unique Retirement Planning Needs

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) December 4, 2015 – Retirement planning can be a very challenging process for couples, and even more so for singles.

Several Americans will enter their retirement years on their own for various reasons, such as the death of a spouse, divorce and different lifestyles. According to the 2013 U.S. Census, 54 percent of women and 27 percent of men age 65 or over were unmarried.

Financial advisers claim that the retirement planning needs of singles can be extremely different from those of married couples, and that many singles are unprepared. A study by Rand Corp. revealed that single people are much more likely to fail to sufficiently save for retirement than are married couples. Researchers Michael Hurd and Susann Rohwedder discovered that 20 percent of married couples will save an inadequate amount for retirement, but the rate for single men and women was even higher. While 35 percent of single men will enter their retirement years without having saved enough, 49 percent of single women will be unprepared for retirement.

“In planning for retirement, it is important to be aware of the ways in which one can minimize expenses and reduce taxes,” said Andrew H. Hook, a Virginia life care planning attorney with Hook Law Center, with offices in Virginia Beach and northern Suffolk. “An estate planning attorney can help singles make wise choices that will help lower their tax burden.”

For those who recently lost their spouses or became divorced, housing costs may have increased as a percentage of income, and some incomes may be less certain. As some people mistakenly believe, a single person’s income is not half of a couple’s income; it could be 60 percent, or 80 percent, of a couple’s income, or the same, unless the single individual greatly lowers housing expenses by either downsizing or getting a roommate. According to research conducted by AARP, 40 percent of adults will think about either option in an effort to reduce expenses.

Tax experts claim that single adults frequently confront more challenging tax issues, particularly as they approach retirement age. During prime earning years, singles can pay a hefty tax, especially since they do not have the benefit of child tax credits, a spousal exemption, and no one with whom to share the benefits of filing jointly.

To reduce the adverse effects of taxes, advisers recommend that their single adult clients, who have their own businesses or side businesses with income from freelance work, establish a solo 401(k). It would also be sensible for single adults to transfer some of the funds from their traditional IRA accounts into a Roth IRA, from which there are no taxes on withdrawals.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • WHAT WOULD THE CANCELLATION OF STUDENT DEBT MEAN FOR THE ECONOMY?
    <p>It seems like the state of the United States economy is on all our minds these days.  High inflation.  Rising interest rates.  Declines in the stock market.  For student loan borrowers, another economic event is looming – the end of the Covid forbearance for the repayment of student loans on August 31, 2022.  With this [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/08/02/what-would-the-cancellation-of-student-debt-mean-for-the-economy/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/08/02/what-would-the-cancellation-of-student-debt-mean-for-the-economy/" target="_blank">WHAT WOULD THE CANCELLATION OF STUDENT DEBT MEAN FOR THE ECONOMY?</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • If Your Wallet Disappears
    <p>The AARP Bulletin often highlights the many effects of the loss or theft of one’s wallet or purse. Remaining diligent about keeping your belongings secure is a year-round commitment, and during the holiday season, it is even more important to keep these valuable items secured; they are easy targets in the hustle and bustle at the local [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/07/26/if-your-wallet-disappears/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/07/26/if-your-wallet-disappears/" target="_blank">If Your Wallet Disappears</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Denial About Aging
    <p>Originally written by Maureen Hook, Ph.D. It’s probably not a surprise that most people in America are in denial about aging, and therefore, they are unprepared for the costs of long-term care when a serious, long-term illness strikes. In fact, a new study reports that 2/3 of people over 40 say they have done little [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/07/19/denial-about-aging/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/07/19/denial-about-aging/" target="_blank">Denial About Aging</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • What Your Face Reveals
    <p>Originally written by Maureen E. Hook, Ph.D. For centuries, many people have considered the face to be a window to the soul. It is after all what distinguishes one person from another. Noses, mouths, cheekbones or not vary from person to person. It’s what makes us interesting. Without these differences, how would directors cast heroes [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/07/12/what-your-face-reveals/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/07/12/what-your-face-reveals/" target="_blank">What Your Face Reveals</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Issues with Cryptocurrency in Estate Planning
    <p>Cryptocurrency is a virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend,[1] and relies on the utilization of blockchain technology on decentralized networks, thus minimizing government interference and centralized failure. A blockchain collects information in blocks, and when a block has reached its storage capacity, it closes and links [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/07/05/issues-with-cryptocurrency-in-estate-planning/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/07/05/issues-with-cryptocurrency-in-estate-planning/" target="_blank">Issues with Cryptocurrency in Estate Planning</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>

Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required