Last Updated: December 20, 2024

Whether you are married, single, divorced or widowed can impact your retirement in myriad ways. Consider how your marital status could affect your plans, as well as steps you can take to improve your situation regardless.

Married Couples

Married couples face advantages and disadvantages when it comes to retirement. With two people retiring together, you’ll need twice as much cash to cover daily living expenses like food, utility bills and healthcare. Also, decisions you make in retirement as an individual in a marriage can adversely affect the other person. 

However, having another person to lean on can be immensely helpful since you can make decisions together and take care of one another. Married couples can also choose to have one or both partners continue working part-time to increase retirement income or delay withdrawals from investment accounts.

In addition, there are other strategies for married couples when it comes to Social Security and Medicare. For example, Social Security election age is important especially if one relies on the other’s benefits. Typically, females live longer than males so if one elects too early, this might end up hurting the other spouse’s spending in the future. You can learn more strategies in our class “Social Security Benefits for Married Couples.” 

For spouses who have a large age gap, you can potentially save money on healthcare costs by enrolling into your younger working spouse’s healthcare plan even if you’re eligible for Medicare. But there are rules to know if you plan to delay your enrollment which you can learn more in our “Medicare 101” class.

Singles

Being single in retirement can be immensely beneficial in some ways. For example, you can opt for a smaller living space, and you only need to have enough assets to pay for monthly expenses for yourself. However, being single in retirement can also mean paying for regular living expenses entirely on your own, and having to make an array of important decisions all by yourself. 

To best assess your finances and Social Security benefits, you need to factor in your longevity. If you plan to live a long life, it might not be wise to collect benefits early at a reduced rate. It might make more sense to build up your savings to carry you over while you delay your Social Security election age to increase your benefits. For a more detailed explanation on when to elect benefits, you can read our class “Social Security Benefits for Singles.”

One great option to lessen the burden of retirement is to find a roommate you trust and get along with. It’s a great way to help each other out, reduce bills like food and utilities, and have company when you want it as well. 

Divorced or Widowed 

Being divorced or widowed can leave you in a similar position in retirement as if you were initially single. However, you're more likely to have access to remaining benefits such as a pension or spousal Social Security benefits. Make sure you have a plan to maximize any spousal benefits currently being paid out to you, as well as those you expect to receive in the future. If you’re a widow or widower, you can draw survivor benefits as early as age sixty without affecting your own benefits, and while you’re still gainfully employed. This is key, since it allows you to keep working and building both your nest egg and your own Social Security benefits which you can learn more about in our class “Social Security Benefits for Widow(er)s.” 

Benefits work a bit differently for divorced spouses, though. If you were married for more than 10 years and you’re now divorced, you’re entitled to 50% of your ex-spouse’s Social Security benefit amount. If your own Social Security benefits are higher, though, you’ll automatically receive that higher amount and your ex-spouse’s benefits won’t come into play. Do keep in mind though, if you are receiving spousal benefits, you can only get the maximum benefit amount when you hit Full Retirement Age. Filing before that will reduce the benefits you’re entitled to. Understand what the rules are to maximize your ex-spousal benefits at “Social Security Benefits for Divorced Couples.”

Finally, for widowed or divorced, remember that these are both considered qualifying life events for the purpose of healthcare enrollment. So be sure to use that to your advantage if you still need to sign up.