Couples Without Kids: The Importance of Intentional Planning

In the US, a growing number of couples are choosing not to have children. As of 2023, the share of childless adults under 50 who say they are unlikely to ever have children rose to 47 percent.¹ That’s an increase of 10 percentage points in just five years.

Choosing not to have children is a deeply personal choice, but it’s also one with meaningful financial planning implications. The traditional planning playbook is built around the nuclear family, especially when it comes to retirement, estate design, and later-life care. By planning with intention, couples without children can ensure that their strategy is designed for their actual goals, rather than default assumptions.

Retirement Planning: Greater Flexibility, Different Trade-Offs

Childfree couples often have greater flexibility when it comes to retirement planning. Without the need to account for costs like childcare or education, achieving retirement goals can become more straightforward. That can make non-traditional retirement pathways (such as an early retirement or mini-retirements) more feasible.

For couples without children, the tools used to achieve retirement goals generally do not change. However, the trade-offs involved do:

• Roth IRAs—Less Attractive. Roth IRAs can be inherited tax-free, making them valuable for retirees seeking an efficient transfer of wealth. Without direct heirs, couples risk paying taxes upfront for a wealth-transfer benefit they may never use.
• Taxable Accounts—More Attractive. Most retirement accounts require an owner to reach age 59½ before assets can be distributed penalty-free. For couples pursuing an early retirement, taxable brokerage accounts can bridge the spending gap before retirement accounts unlock.
• Health Savings Accounts (HSAs)—More Attractive. Without children’s medical expenses drawing down the account, HSAs can function as an additional retirement vehicle. After age 65, funds in this account can be withdrawn for any purpose by paying income taxes on distributions (similar to a Traditional IRA).

Understanding these trade-offs can allow childfree couples to take full advantage of the flexibility that comes with fewer obligations. 

Care Planning: Aging Without Children

As an individual ages, adult children are often expected to help provide care and make decisions. Without children to fill this role, couples need to plan for what may happen if one or both partners are unable to manage their own affairs.

Preparing for long-term care costs—such as an assisted living facility or in-home care—should be part of a couple’s long-term financial plan. As of 2024, the average assisted living facility in the US costs approximately $5,500 per month.² Tools like long-term care insurance can help offset these costs.

Outside of financial preparation, childless couples also need to consider who will be authorized to make decisions on their behalf. Advance directives can allow a couple to establish their medical wishes upfront, while authorizing certain individuals to make healthcare decisions if the need arises. These directives can be especially important if one partner is unable to act for the other.

With potentially less familial support in their later years, childfree couples can also lean on trusted service providers to help manage their affairs. A couple’s professional team may include a wealth manager, an estate planning attorney, and an independent trustee. Together, this team can serve as a durable support structure as circumstances evolve.

 Estate Planning: Avoiding Unintended Outcomes

Without children to inherit assets, the law may dictate that a couple’s estate be distributed in unexpected ways. In the absence of a will, assets could be distributed to a distant relative, or to a family member that a couple has a complex relationship with. As a result, it’s important for childless couples to plan their estate deliberately.

Several tools can help these couples direct their estate with intention:

• Beneficiary Designations. Properly naming beneficiaries can ensure that assets are bequeathed to specific people, bypassing the probate process. Beneficiaries may include siblings, nieces and nephews, or members of a chosen family.
• Charitable Giving. If a couple has strongly aligned philanthropic values, leaving assets to a charity can make sense. Tools like donor-advised funds can provide both a philanthropic legacy and potential lifetime tax benefits.
• Specialized Tools. Depending on a couple’s priorities, specialized planning tools may also be useful. For example, a pet trust provides money and instructions for taking care of companion animals when their owner passes away.

An intentionally designed estate plan gives you control, rather than allowing default rules to lead to unintended outcomes.

Conclusion: Planning On Your Own Terms

From retirement savings to care planning to estate design, deliberate choices can keep your financial plan in line with your actual priorities. And if those priorities change, reviewing your plan at regular intervals can help keep it updated. An annual review with your wealth manager can identify planning gaps before they become problems.

At Badgley Phelps, we work with our clients to create a plan that’s tailored to their life, not a template. We invite you to contact us to start the conversation.

¹ Pew Research, What do Americans think about fewer people choosing to have children? Link

2 Federal Long Term Care Insurance Program, Long Term Care Costs Link

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable. However, Badgley Phelps cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Badgley Phelps does not provide tax, legal, or accounting advice, and nothing contained in these materials should be taken as such.