Childless Adults Trail Parents by 20 Points in Retirement Planning

Americans without children are considerably less confident about meeting their retirement goals than those with kids, according to a new Allianz report.

Americans without children are considerably less confident about retirement than parents, with 62 percent lacking a written financial plan versus 42 percent of parents, per the Allianz Center for the Future of Retirement.

"Not having kids can create a false sense of financial comfort. Your day-to-day feels manageable, so retirement planning stays in the background," said Kelly LaVigne, vice president of Consumer Insights at Allianz Life.

Roughly one-quarter of American adults in their 50s and more than 2 in 10 of those in their 60s have never had children, according to Pew Research Center data. Nearly half of all respondents said they considered the potential challenges of saving for retirement as a significant factor when deciding whether to have children — a figure that jumps to more than 60 percent for millennials aged 30 to 45.

The gap matters because childless adults are also less likely to have estate planning documents in place — including healthcare proxies, durable powers of attorney, and advance directives — leaving them exposed to financial and medical decision-making gaps in later years.

The counterintuitive finding runs against the assumption that dual-income, no-kids households — DINKS — should have more disposable income to save during their prime working years. LaVigne's explanation: parenthood triggers a financial wake-up call that forces planning, while childless adults may drift without that pressure. "But if that wake-up call never comes, you can fall behind," he said.

Parents face their own trade-offs. Among those not saving as much as they would like for retirement, many say saving for their children's education takes priority, and childcare costs are another hindrance, according to the Allianz report. Americans with kids are also more likely than those without to say credit card debt and car loan debt hold them back from retirement saving.

Estate Planning Gaps for Solo Agers

Beyond retirement savings, the planning deficit extends to legal documents. "It's often quite challenging for solo agers to enlist friends, neighbors, younger cousins, and so on to take on that responsibility on the health front as well as the monetary front, especially if they don't have family nearby," said Sara Zeff Geber, author of "Essential Retirement Planning for Solo Agers: A Retirement and Aging Roadmap for Single and Childless Adults."

Housing decisions are another daunting aspect of retirement planning, including whether aging in place — with potentially lots of help — is best or moving to a retirement community, Geber added. People with adult children typically turn to them for guidance, and in later years these kids may step up to cover costs if there's a health shock or if parents need pricey assisted living arrangements.

What can get some childless people to start focusing on financial planning: a pet. "I find that child-free people are more likely to get their estate paperwork in place to protect their pets than for their own protection," said Jay Zigmont, a financial and estate planner in Nashville, Tennessee.

The implications extend beyond individual households. As more young adults say they don't plan to have children, the share of childless retirees is likely to grow, making the planning gap a broader societal concern. Financial advisors and retirement planners may need to develop targeted approaches for solo agers, who cannot rely on adult children for financial or caregiving support in their later years. For childless adults themselves, the Allianz findings suggest that creating a written financial plan and completing estate documents should be priorities regardless of whether a "wake-up call" ever arrives.

This article is for informational purposes only and does not constitute investment advice.