Data & Research
Solo Adults Report Confidence in Saving—but Concerns About Having Enough for Retirement
An Ameriprise survey found that nearly half of single, divorced and widowed adults view retirement preparedness as a top financial priority.
Reported by Edward Rueda
Deana Healy, vice president of financial planning and advice at Ameriprise Financial, tells PLANADVISER she was struck by how respondents were intentional in their desire to remain financially independent: More than three-quarters of respondents (76%) said they expected to remain financially solo for the long term. Almost all respondents (96%) agreed there are benefits to being self-sufficient, including complete control over financial decisions (cited by 59%), avoiding financial conflict (cited by 54%), and not needing to compromise on financial goals (cited by 42%).
This desire for financial independence was paired with a nearly uniform (91%) sense of accomplishment in how respondents managed their finances. Despite that confidence, speaking with a mostly mass-affluent crowd—respondents had an average of $700,000 in investable assets—Ameriprise found that only 37% of respondents had confidence in how they saved for retirement.
Nearly half of respondents (49%) said their top financial priority was saving for retirement, 44% prioritized protecting wealth, and 38% said they prioritized managing everyday expenses.
Slightly more than half of respondents (52%) worked with financial advisers, which also boosted their fiscal outlook. Among respondents who worked with advisers, 81% said they gained financial confidence, 52% felt more secure about the future, and 47% got emotional support during major decisions.
Healy says financial advisers can be valuable partners to help solo adults not only accumulate savings, but also envision retirement timelines and strategize about Social Security and supplementary income decisions.
“If you can picture your future, you can put a plan in place to meet that goal,” Healy says.
When respondents were asked about their “top legacy wishes,” the most-cited response was not being a financial burden (49%)—surpassing fond remembrances (46%), shared memories (43%) and leaving assets for loved ones (36%). As for making their wish a reality, only 29% said they felt confident they would not be a financial burden, showing potential concerns about having enough to sustain them later in life.
Healy says financial advisers can also help clients tackle crucial legal and health care planning—and help address complexities that may be unique to individuals without partners. Only 41% of respondents said they had worked out health care directives; 38% that they had figured out financial power of attorney; 37% had formal wills; 34% had disability insurance; and just 29% had long-term care coverage.
“Helping clients stay [financially] accountable and being a financial sounding board for decisions—they really go hand-in-hand,” Healy says.
Artemis Strategy Group conducted an online survey on behalf of Ameriprise from January 2 through 29.