Inflation is reshaping the American economy, placing additional financial pressure on older adults. A demographic shift is compounding this strain, as more adults age without spouses, partners, or adult children to rely on.
These individuals, known as solo-agers, face increased precarity, anxiety, and a greater likelihood of living in poverty. Before the mid-twentieth century, aging was often a communal or familial process, but the landscape shifted dramatically starting in the 1980s.
According to KFF Health News, roughly 28% of Americans 65 and older now live alone, a stark increase from about 10% in 1950. For these individuals, the margin for error in retirement planning is shrinking.
The Society of Actuaries generally defines solo-agers as older adults who are single, living alone, and lack traditional family support, such as a spouse or nearby adult children. While widowhood was once the primary driver of this demographic, the modern solo-ager population is more diverse.
Demographic trends, including lower marriage rates, higher divorce rates in later life, and the decision not to have children among younger boomers and Gen Xers, mean the share of solo-agers is rising compared to older generations.
Solo living was made possible by the economic expansion of the 20th century and the advance of rights for women, but one unforeseen consequence is potential financial vulnerability. Older adults who live alone shoulder the full cost of housing, utilities, transportation, and food, often referred to as the "singles tax."
A couple living together needs only one internet connection, one heating bill, and often only one vehicle. A solo-ager pays the same rate for these essentials but with only one income stream. For this reason, solo retirees often need significantly larger retirement resources to sustain the same lifestyle as couples.
This problem is worse for women, who, on average, live longer than men and may have lower lifetime earnings due to wage gaps or caregiving interruptions. After age 75, 43% of women live solo, while only 21% of men do, primarily because of women’s longer lifespans.
Housing is the largest line item in most retirees' budgets, and for solo-agers, it can be the most difficult expense to meet. Rising rents, property taxes, and homeowners’ insurance can quickly overwhelm a single income, particularly in high-cost regions where older adults may have deep community roots they don’t want to give up by relocating or downsizing.
Health care costs are also daunting. Without a spouse to provide unpaid care at home, solo-agers may face immediate out-of-pocket costs for home health aides, assisted living, or nursing home stays as their health declines. These services can cost thousands of dollars per month.
According to data compiled by CareScout, the costs of in-home care, assisted living community costs, and private room nursing home costs have risen 9% since 2022. Costs differ depending on location, but the national average for annual in-home costs was $77,796 in 2024. For assisted living communities, the cost was $70,800, and for private room nursing homes it was $127,752.
Medicaid alone may not be enough. In 2023, Medicaid only paid for 44% of long-term institutional care costs. That share could shrink even more, with the One Big Beautiful Act set to cut Medicaid spending by $911 billion over the next decade.
Despite these risks, many solo-agers find themselves paralyzed when it comes to planning. Essential items such as detailed budgets, long-term care plans, or legal documents naming decision-makers often go unfinished. Choices about downsizing, purchasing insurance, or moving to supportive communities are sometimes delayed until a crisis forces their hand.
Standard retirement rules of thumb, like saving enough to replace 70% to 80% of pre-retirement income and the 4% rule, may not be applicable to solo-agers. Because they cannot rely on a partner’s pension, Social Security, or "free" caregiver labor, their financial bar is higher. A solo-ager’s retirement budget must account for paying professionals for tasks that spouses or children often do for free, such as transportation, grocery trips, and household repairs.
To lower their risk, solo-agers must be strategic about income, savings, and retirement. As a rule, those living alone after age 65 are more likely to need to delay taking their Social Security benefits until age 70 to maximize their monthly payout. Solo-agers must also be intentional about choosing their network of trusted friends and neighbors who can provide emotional and practical support that acts as a safety net when health problems arise. Without a second income or built-in support system, solo-agers may want to plan for extra financial wiggle room.
Heather Nawrocki, vice president of experiences and connections at AARP, said in a survey report, "There can be a lot of joy in aging solo. Feeling the freedom to choose their own path, solo-agers are the captains of their own ship. They can pursue their own interests. There’s a lot of positivity."
But solo-agers typically face higher per-person costs and heavier planning burdens than their partnered peers. That’s why investing early can make a big difference. Investing as little as $30 each week can add up to over $94,000 in retirement savings over 20 years, assuming it compounds at 10% annually.