In other words, the living costs of single retirees are certainly not half of those of their married counterparts - far from it.

The latest ASFA Retirement Standard report, released this month, reports that a "modest" lifestyle costs a single retiree $21,930 a
year against $31,675 for a couple. (These figures are adjusted for the December
quarter 2011 CPI.)

And a single retiree would have to spend $40,407 for a so-called "comfortable" lifestyle whereas a couple would have to pay $55,249.
(Of course, there could be endless debates about what constitutes a
"comfortable" lifestyle.)

A long-time single person who recognises that the gap between the living costs of singles and couples is not as wide as many perceive
is arguably in a better position to save for retirement.

However, individuals who unexpectedly become single, perhaps late in their working lives, following the breakdown of a relationship
or death of a partner can find their retirement planning suddenly turned upside
down.

Obviously, prudent retirement planning makes much sense whether you are currently single or in a relationship.

Taking into account your personal circumstances, perhaps the fundamental issue to consider when planning for retirement is
whether your regular savings are enough to eventually produce a sufficient
retirement income. This can lead on to other matters such as the
appropriateness of your portfolio's asset allocation and your tolerance to
investment risk.

By Robin Bowerman
Smart Investing
Principal & Head of Retail, Vanguard Investments Australia

1st March 2012