As societal norms evolve, an increasing number of individuals are choosing not to have children, either by preference or due to unforeseen circumstances. This trend is becoming more prominent in countries like the United States, where the childfree population, especially among older adults, is steadily rising.
For those without children, the retirement planning process presents unique challenges compared to traditional family structures. Typically, children are seen as the safety net for aging parents, providing financial support, caregiving, and emotional companionship. But for those without children, the question of how to prepare for retirement becomes more complex and urgent.
Take, for example, a childfree couple from Alameda, California, who in their 30s decided to invest in long-term care insurance, a decision that has given them peace of mind as they approach their later years. As they approach retirement, this couple recognizes that the lack of a family safety net makes it even more crucial to plan ahead for possible health issues and long-term care.
The U.S. Department of Health and Human Services estimates that 70% of people over 65 will require long-term care at some point in their lives, with nearly half of them needing paid care. Faced with this reality, many childfree couples, like this one, opt to buy long-term care insurance while they are still young. Not only does this protect them from potential financial strain in their retirement years, but it also ensures that they won't be a burden to anyone else.
Retirement planning for childfree individuals involves more than just financial savings—it also encompasses decisions around living arrangements, healthcare, and estate planning. While individuals with children can often rely on their offspring to make crucial decisions on their behalf as they age, those without children face the question of who will act as their decision-makers. Who will make healthcare choices if they are incapacitated? Who will manage their finances? These are crucial questions that need to be addressed early on.
Financial advisors frequently stress that childfree individuals should identify and designate trusted friends or relatives as their power of attorney or healthcare proxy. Ideally, these individuals should be of a similar or younger age, in good health, and, if possible, live nearby.
Some childfree people may find themselves turning to nieces, nephews, or even close friends for this role, and it’s important to have open conversations about these responsibilities well before they’re needed. In some cases, hiring a professional aging life care manager can also be a good option. These professionals help with everything from healthcare and financial management to finding caregiving resources.
Many childfree people form strong emotional bonds with their nieces and nephews, and in many cases, these younger family members may step up to provide care in the future. One expert, Joy Loverde, suggests that childfree individuals can strengthen their relationships with their nieces and nephews by offering financial support, much like parents might do for their children. This kind of support can foster deeper connections and create a sense of mutual care that will help when the time comes for assistance in old age.
Another critical issue for the childfree population is the need for long-term care. With no children to care for them in their later years, these individuals often face greater challenges in securing the right care.
Research shows that roughly 70% of individuals who reach the age of 65 will require some form of long-term care, and almost half of them will require paid assistance. For childfree couples, investing in long-term care insurance early on is often a wise choice. Insurance premiums tend to be lower when purchased at a younger age, making it more financially feasible.
According to Genworth, a private room in a nursing home is projected to cost $157,000 per year by 2033. Thus, having insurance coverage or a care plan in place can help relieve financial pressure and provide essential services such as home health assistance or nursing home care.
However, it's not only about healthcare. For those who are childfree, where and how they want to live in their later years is an equally important question. Many retirees with children often choose to live near their offspring, who can provide both physical care and emotional support.
For childfree individuals, this decision can be more complicated, as they may not have family members nearby. Consequently, planning for housing needs in advance is vital. Financial planners suggest that childfree individuals should set aside funds for future home modifications that may be needed to accommodate aging, such as installing a ramp or a walk-in shower.
Alternatively, they may need to consider moving to a community that is better suited for older adults, such as a continuing care retirement community (CCRC), which offers different levels of care in one location—from independent living to assisted living to nursing care. While these communities can require large upfront payments, they can provide a comprehensive and flexible solution for those who don’t have children to rely on.
Another important aspect of planning for retirement is maintaining social connections. Many people with children are able to stay emotionally connected with family, but childfree individuals must consider how they will stay engaged with others as they age.
Setting aside funds for activities, classes, or travel can help combat loneliness, while ensuring that technology is in place to facilitate virtual connections with friends and loved ones. Whether it's by participating in social events, traveling, or simply upgrading their digital skills, ensuring that their social needs are met can help childfree retirees live fulfilling and enriched lives.
One of the greatest advantages of being childfree is that, without the financial burden of raising children, these individuals often have more disposable income. Financial advisors suggest that childfree individuals can put the money they would have spent on child-rearing into their retirement savings. For those 50 and older, the contribution limits for retirement accounts such as 401(k)s and IRAs are higher.
For example, in 2025, those 50 and above can contribute up to $8,000 to an individual retirement account (IRA) and up to $31,000 to a workplace retirement plan. For those aged 60 to 63, the contribution limit for workplace plans increases to $34,250. This presents a unique opportunity for childfree individuals to supercharge their retirement savings and ensure that they are financially secure in their later years.
Estate planning is also an essential consideration for the childfree. While many people think of estate planning as a way to transfer wealth to their children, for those without offspring, it becomes a question of where their assets should go. Without children, the default heirs under state intestacy laws may not align with their wishes.
As financial planner Emily Irwin notes, a will helps individuals decide exactly how they want their assets to be distributed, whether to charitable organizations, friends, or nieces and nephews. For childfree individuals, this proactive approach to estate planning can ensure that their legacy is aligned with their values and wishes.
In some cases, financial planners like Jay Zigmont, who specializes in advising childfree individuals, ask their clients to consider what they would want the second line of their obituary to say. This exercise encourages individuals to think about the people, causes, or organizations they want to support after their death.
By asking these questions and making decisions early, childfree individuals can ensure that their wealth is distributed in a way that reflects their priorities, and that their legacy has meaning beyond just the financial.
For the childfree, retirement planning is both a challenge and an opportunity. Without children to fall back on, it is essential to take proactive steps to prepare for aging, whether through securing long-term care, finding suitable living arrangements, or ensuring that social needs are met. By making thoughtful decisions about finances, caregiving, and legacy, childfree individuals can ensure that their later years are filled with independence, security, and fulfillment.