Millennials are staying single longer and having children later – that has implications for … [+]
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“One may be the loneliest number that you will ever do.” Despite the lyrical lament by the 1970’s rock band Three Dog Night, it appears that more people than ever are choosing singlehood.
November 11 is Singles Day. A holiday that began in China in 1993. The day of celebration was conjured up by university students to celebrate their “freedom” from a significant other. November 11 was named the day for celebration because of the symbolic power of four single sticks of 1’s in the date 11/11.
While the holiday may have begun with college students looking for a reason to party, it is now recognized as the single largest shopping day in the world. Singles Day has spread throughout Asia and has now found its way to Europe. The solo lifestyle celebration is now part of retail advertising campaigns in the United States and Canada.
But, there’s something more to Singles Day than retail sales. It is an indicator of a larger demographic trend that may change the face of caregiving and life in retirement.
Living life as a party of one is becoming more popular. The General Social Survey indicates that more than half of young American Millennials between 18 and 34 years old do not have a significant other. Likewise, Canadians between ages 20 and 34 years old, living without a partner, has risen to a 20-year high. Statistics indicate that nearly six in 10 young Canadians have not found their other half. Romance aside, not having a partner has implications for other life roles and retirement.
Singles Day falls squarely in the middle of November, National Family Caregivers Month. First Lady Rosalynn Carter is quoted as observing that “There are only four kinds of people in the world: those who have been caregivers, those who are currently caregivers, those who will be caregivers, and those who will need caregivers.” Living single for an extended period, or as a lifelong choice, presents a different dynamic for caregiving and living in older age.
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Data suggest that traditional life stages, such as finding a partner and having children, are occurring at older ages than previous generations. US Centers for Disease Control data and Statistics Canada data show that the only cohort of women with an increasing birthrate are women over 40-years old. That is not necessarily a problem, but having children closer to traditional midlife may collide with other family roles such as caring for an aging parent. A 40-year old mother with a newborn, or toddler, is likely to have a parent that is much older, and have more needs, than a first-time mother in her 30s.
Extended singlehood, and delays in having children, are likely to intensify the challenges of balancing career and children with caring for aging parents – making the coming sandwich generation of Millennials feel more like a hard-pressed panini.
To manage the competing demands, and related stress, of career, children and caregiving, some people may forgo higher paying jobs for positions that do not demand long hours or travel. Others may choose part-time work, while many may be forced to leave the workforce altogether. Each of these choices are likely to have an impact on today’s income and tomorrow’s retirement security. And, if today’s trend of adult daughters acting as primary caregivers of aging parents continues, it will be women who are likely to be caught in the coming caregiving crunch.
By decision, or by default, not everyone will find a significant other. Living solo in younger years is one experience, however aging alone is quite another. Most people age well not because of what they have saved, not necessarily because they follow doctor‘s orders, but because of a strong social and family network of support.
Duties from taking out the trash, changing light bulbs, grocery shopping, cooking, medication management, to countless other other chores that are often informally shared between a couple, are now on the shoulders of one. Self-care as an older person living alone will require far more preparation than what is offered by traditional retirement planning. Moreover, additional retirement income will be necessary to purchase and provide the services traditionally shared with a partner, e.g., transportation, home health care, food shopping.
Over time, it is highly likely that many of today’s single Millennials will drive up the number of single older people. Today, approximately 27% of people in the United States and Canada over age 60 live alone – given current trends in living single, can we envision nearly half, or more, of older adults living solo in coming decades? If so, individuals, and financial professionals, should focus less on traditional retirement planning, and focus more on longevity planning, to understand, and to prepare for the practical implications of choices made across the life course on life in older age.