Retirement savers face more financial stress than couples – and as many pensioners can expect to spend at least a decade on their own they need to factor the extra money they need into savings plans.
In recent decades, the number of people living alone in the UK has doubled.
In 1974, the figure was around 10%, while latest official statistics show the number is nearer a fifth.
Relying on one income makes financial planning harder, because running a home costs £2,000 a year more for singles, according to pensions firm LV=.
In a study of census statistics, the firm revealed anyone aged between 60 and 70 years old now can expect to spend 10 years on their own, because people are generally living longer and more people are divorcing or separating.
Lifestyle choices
Many singles also make living on their own a lifestyle choice because they enjoy their independence and freedom.
The downside is instead of sharing savings and living costs, singles are responsible for their own finances and cannot rely on an extra wage from their partner should they lose their job or become unable to work.
The financial firm has calculated that singles spend £1,825 a year more than couples on running a home.
This extra commitment gives them less disposable income and reduces the money they can put aside for savings and pensions.
As a result, singles have an average of £2,000 savings compared with £6,000 for couples.
Singles should save more
Few singles have a financial plan other than eating into their savings if they cannot work, and nearly a quarter would run out of money within just two weeks if they lost their income.
The firm suggests that singles should try to put more rainy day money aside to cover living costs for a longer period and if still working, consider spending some of their disposable cash on income protection insurance.
Managing director of life and pension Richard Rowney said: “Modern lifestyle choices are changing and many people prefer to remain single and independent.
“Although this is a popular choice, singles have to realise that this freedom comes at a price that they may not realise until later in life when they find their financial resources are lacking. We are not advocating anyone gives up their independence, just that they should examine their savings and financial plans.
“It’s apparent from our research people are not saving as much as they should and could not survive long if the worst should happen.”
