Planning for Your Financial Future When You’re Child-Free

In 2025, more individuals are choosing to be “child-free.” According to a Pew Research Center study, U.S. adults under 50 without children who say they are unlikely to ever have them increased from 37% in 2018 to 47% in 2023. A Michigan State University study also found that child-free individuals ages 18–44 nearly doubled, from 14% in 2002 to almost 30% in 2022.

This trend is reflected in declining U.S. birth rates. In 2024, the total fertility rate dropped to an all-time low of 1.599 births per woman, compared to 2.02 in 2002. The decline began during the Great Recession in 2008 and has yet to rebound.

With child-free living becoming more common, it’s important to consider the unique financial planning strategies that come with this decision.

Lifestyle Planning

Instead of budgeting for diapers, tuition, and family cars, child-free individuals can direct disposable income toward other priorities. Common areas include:

Travel
Many child-free individuals prioritize travel, whether through frequent weekend getaways, international adventures, or even a nomadic lifestyle. If travel is a financial priority, it should be built into your overall financial plan.

Philanthropy and Social Impact
For some, “legacy” means impact rather than inheritance. Financial planning can accommodate philanthropic goals, from supporting nonprofits during your lifetime to leaving assets to causes in your estate plan. Child-free individuals often find deeper community fulfillment through these efforts.

Financial Independence, Retire Early (FIRE)
The FIRE movement is particularly accessible for those without dependents. Higher discretionary income can lead to greater savings capacity, allowing for earlier financial independence and retirement.

Elder-Care Considerations

The classic question “Who will take care of you when you’re old?” is a serious one. Child-free individuals should plan thoughtfully for future care.

Long-Term Care (LTC) Insurance
Long-term care is expensive. Savings that might have gone toward raising children can instead help cover in-home care, assisted living, or nursing home costs.

Types of LTC policies include:

• Traditional LTC Insurance: Premiums are paid for coverage, but if unused, no benefits are returned.

• Hybrid Policies: Combine LTC with life insurance. If LTC benefits aren’t used, a death benefit passes to your beneficiaries.

Typically, only a supplemental policy is needed. Working with a financial planner ensures you select the right coverage at the right time (often in your 50s for lower premiums).

Estate Planning

Without children to make decisions or inherit assets, child-free individuals should establish a clear plan:

“Board of Directors”
Designate trusted friends, siblings, nieces, nephews, or professionals to make decisions on your behalf if you become incapacitated.

Key Legal Documents:

• Durable Power of Attorney (POA) for Finances – Authorizes someone to manage financial affairs.

• Healthcare Power of Attorney (Proxy) – Names someone to make medical decisions if you cannot.

• Living Will (Advance Directive) – States your medical treatment preferences, easing the burden on loved ones.

• Last Will and Testament – Ensures your assets pass according to your wishes. Remember, beneficiary designations on retirement and investment accounts often supersede your will.

Planning for a child-free future doesn’t need to be overwhelming. By addressing lifestyle priorities, elder-care needs, and estate planning early, you can build a secure and fulfilling future. The most important step is consulting a financial advisor who can help align your financial plan with your life goals.