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How to help “Childfree” and Solo Ager clients prioritize living well today over building wealth for heirs.
In the realm of financial planning, many assumptions are built around the idea of family—raising children, preparing for their futures, and transferring wealth to the next generation (G2 and G3). However, for clients who are childfree, these standard guidelines don’t always apply. Advisors working with these clients must adopt a new set of strategies to ensure they meet their unique goals.
Jay Zigmont, author of The Childfree Guide to Life and Money and founder and CEO of Childfree Wealth, is among the few advisors in the U.S. specifically dedicated to this demographic. According to Nashville-based Zigmont, living without children—whether by choice or circumstance—fundamentally alters traditional financial planning. “It’s a completely different life,” he explains. As a result, advisors must be prepared to upend conventional approaches when working with these clients.
For childfree individuals, the focus isn’t on college savings plans or generational wealth transfer, but rather on how to structure a fulfilling life, manage longevity risks, and plan for late-in-life care. Legal considerations, such as privacy and who will make decisions on their behalf, also become more complex without children to rely on.
A Growing Demographic in Need of Specialized Planning
The childfree population, which accounts for roughly 25% of Americans, according to a recent study by Pew Research Center, has remained underserved within the financial services industry.
According to the Pew study, many people say not having kids has made it easier for them to afford the things they want, have time for hobbies and interests, and save for the future. Of the younger research participants, about six-in-ten also say not having kids has made it easier for them to be successful in their job or career and to have an active social life
According to Zigmont, childfree individuals include those who have chosen not to have children as well as those who are permanently childless due to external factors. This group does not include those who may still be planning to have children, such as DINKYs (Double Income, No Kids Yet).
A 2022 Michigan State University study revealed that over 21% of adults in Michigan were childless by choice, highlighting the scale of this demographic. Yet financial planning programs and CFP coursework rarely, if ever, address the specific needs of childfree clients. Zigmont’s firm, Childfree Wealth, is one of the few that caters to this underserved group.
This growing population is often overlooked, much like a promising new sports team that’s playing in the shadows. By acknowledging the distinct needs of childfree clients, advisors can tailor their approach, helping clients achieve success in ways that differ from traditional family-centric plans.
Midlife Adjustments: The Childfree Midlife Crisis
For many childfree individuals, the so-called midlife crisis isn’t about regret but rather an existential shift in focus. It typically happens in their 40s or 50s, once personal and professional goals have been met. Zigmont refers to this as the “childfree midlife crisis.”
Zigmont explains, “Without children to provide a natural next step, many clients begin to question what their money is for. They may have already achieved what parents would consider their primary objectives—buying a home, advancing their career, and saving for the future—but without children, the roadmap becomes less clear.”
Advisors working with childfree clients need to help them navigate this unique stage. Like an experienced coach guiding an athlete through a career transition, the advisor helps redefine goals and shape a new financial strategy based on personal fulfillment rather than family obligations.
Solo Agers: Addressing Longevity and Decision-Making
Among the childfree population, a notable group is the "Solo Agers"—individuals who are aging without a spouse or children to rely on for support. These clients face a distinct set of challenges, particularly when it comes to handling late-life planning and ensuring their wishes are respected when they can no longer manage their own affairs.
Solo Agers often need to hire professional help or rely on a trusted friend or relative to manage essential legal responsibilities, such as Power of Attorney and Health Care Proxy duties. These documents empower a designated individual to make financial and medical decisions when the client is incapacitated. However, unlike clients with adult children, Solo Agers may not have obvious candidates to fill these critical roles.
For advisors, this means helping Solo Agers establish a robust plan to manage their affairs in the event they become incapacitated. This might involve setting aside resources for long-term care or working with legal professionals to identify appropriate individuals to take on these responsibilities.
“We’ve conducted a number of contingency planning discussions for Solo Ager clients. It’s important to have these ‘where do you want to age’ discussions with clients in their middle age vs in times of crisis after a major health event,” says Orlando Florida-based Chad Faulkenberry, Financial Advisor at Journey Strategic Wealth. “Some are choosing Continuing Care Retirement Communities (CCRCs) which offer a glide path of senior living options, new friendships, and the bonus psychological payoff of giving them peace of mind.”
More than money, what about personal relationships and building a support network?
According to Suzanne Schmitt, managing director of Next Chapter, advisors should probe to understand whether their solo agers have a reliable network of friends or extended family who will support the solo ager by acting in the near term as social support, partner midterm on safely aging-in-place, and longer term by serving in key roles such as POA or healthcare proxy to help ensure the solo agers wishes are fulfilled.
Advisors should also be aware that many solo agers may be need — eventually — to pool their resources and bring households together. “It’s a trend that’s commonly referred to as ‘Golden Girling’ — particularly as Boomers and older Xers move into and through increasingly long retirements,” explains Schmitt.
Trusted relationships and forward-thinking legal arrangements become vital to ensuring that solo agers’ wishes are respected and their financial affairs managed correctly.
Living Life on Their Own Terms
Childfree clients are often focused on living a fulfilling life today rather than building a legacy for future generations. As a result, many of these individuals aim to spend down all their assets —a financial approach popularized by the book Die With Zero by Bill Perkins. Zigmont emphasizes that for childfree clients, the goal isn’t to accumulate wealth for the sake of inheritance but to enjoy life fully and contribute to causes they care about while they are alive.
“If my nephews get $100,000 after I die, that’s fine,” says Zigmont. “But if they get $1 million, I made a mistake.” This mindset often leads to charitable giving during their lifetime and an intentional strategy to minimize the size of their estate at death
Advisors working with childfree clients must shift their focus from building a large nest egg to creating a life plan that aligns with their values. Unlike the traditional approach that aims to ensure clients don’t run out of money in their later years, Zigmont often runs inverse Monte Carlo simulations—strategies that help clients efficiently spend down their wealth while still ensuring they have enough for long-term care and other contingencies.
The Shift in Focus: It’s Not About the Kids
A childfree financial plan also demands a different approach to homeownership and retirement. Many childfree clients, for instance, prefer renting or moving frequently, which can make purchasing a home a less favorable option. Traditional advice to build equity over time may not apply, as these clients prioritize flexibility and experiences over the long-term stability that homeownership provides.
Zigmont and his firm focus on helping these clients map out their personal goals first and then fit the financial planning around that vision. This might involve saving for travel, investing in passion projects, or simply having the freedom to pivot their life plans when new opportunities arise—such as the client who took a job in Asia on short notice, completely shifting their financial trajectory.
This flexibility reflects the core of childfree planning—life comes first, and financial strategies follow.
New Lifestyle Considerations
As Michal Mikrut, CFP® and wealth management advisor at Greenleaf Trust in Michigan, discovered, a holistic wealth management plan must account for the unique goals and priorities of childfree individuals.
When a childfree couple in their forties received a multimillion-dollar windfall after selling a technology business, Greenleaf Trust was tasked with creating a financial plan tailored to their specific desires. The clients expressed a strong desire to purchase a small yacht to entertain friends and family, emphasizing the joy it would bring them.
Recognizing the importance of a sustainability analysis*, Mikrut and his team examined the total cost of ownership over the long term. The results were remarkable: despite an initial purchase price of over $500,000, the lifetime cost of the yacht was projected to impact their median ending portfolio value by nearly $5 million. Although significantly more than the couple initially considered, their needs would be satisfied and other goals could still be achieved. “Our analysis demonstrated that the luxury purchase was affordable and aligned with the clients' financial plan and projected budgets,“ says Mikrut.
For financial advisors, this case serves as a valuable reminder that sustainability analyses are essential for childfree clients. By understanding their unique goals and evaluating expenses over time, you can help childfree individuals make informed decisions that maximize their long-term financial well-being and happiness.
Late-Life Considerations: Who Will Take Care of Me?
For many childfree clients, late-life planning revolves around ensuring they are cared for without relying on children or close family members. Advisors need to help these clients develop a long-term care plan by the time they reach their mid-40s or 50s, whether that involves setting aside funds or purchasing insurance.
One of the biggest challenges childfree individuals face is the question of who will handle their affairs as they age. Without children or next of kin to rely on, clients need to carefully plan for who will take on roles such as Power of Attorney, Health Care Proxy, and executor of their estate. Zigmont’s firm is even launching a service to fulfill these responsibilities, recognizing the growing demand for such support.
“It's common for childfree people to fear that there’s no one they trust to take care of them,” says Nathan Astle, founder of the Financial Therapy Clinical Institute in Kansas City, Missouri. “If you want a friend or loved one to serve as your appointed executor, clarity is vital. You have to be clear about your wishes and hopes for your money and health. In addition, let your financial advisor can play the role of quarterback and connect you to professional estate planning, tax and health resources that will serve your unique needs.”
Life insurance needs also differ for childfree clients. Since they do not need to replace income for dependents, many childfree couples or solo individuals have little or no need for traditional life insurance policies. “We’ve worked with clients who choose to purchase life insurance coupled with a LTC Rider,” says Journey’s Faulkenberry, “This approach can help cover the costs of long-term care services, such as in-home care, assisted living facilities, or nursing homes. The LTC benefits paid out by the rider are typically tax-free and may offer inflation protection and estate planning benefits that can help boost financial security.”
A New Era of Financial Planning
As the childfree population grows, advisors must embrace the opportunity to serve this unique and often overlooked group. Financial planning for the childfree requires rethinking the core assumptions that underlie traditional wealth management. Advisors who recognize the distinct needs of this group, from midlife questions to late-life care, can build strategies that truly align with their clients’ values and goals.
According to George Raftopoulos, CFP®, President of Nvest Financial in Portsmouth, NH, there are a lot of planning opportunities associated solo agers and childfree clients. “If the advisor is truly a financial planner practicing holistic planning, they can address a myriad of issues, goals and opportunities to help this emerging demographic. Any good advisor knows that understanding, empathizing and educating clients are the three most important approaches to this demographic, as with any group,” says Raftopoulos.
Like a sports team adjusting its game plan based on new data, or a gardener tending to each plant’s specific needs, financial advisors must understand that childfree clients follow a different script—and helping them write that story is key to a successful financial partnership.
Related: How Advisors Are Helping Clients Unretire
* Sustainability Analysis (utilizing Monte Carlo Analysis): is a mathematical process used to implement complex statistical methods that chart the probability of certain financial outcomes at certain times in the future. This Monte Carlo analysis illustrates the potential results of your financial plan using up to 1000 randomly generated market returns and volatility called trial runs. In each trial run, the mean and standard deviation of a selected benchmark index for each account or portfolio is used for a randomly chosen year. This hypothetical investment performance is combined with the detailed cash flow and tax calculations for your plan. The trial runs produce a range of potential results and are one way of illustrating and evaluating the statistical probability of your planning strategies. The intent with this analysis is not to dictate how you should spend your assets, but instead to clearly outline the different projected outcomes that result from spending rate decisions. Source: Greenleaf Trust