Recent findings indicate that living alone significantly impacts your financial stability. Individuals living singly have lower earnings compared to couples but face higher expenses for bills. Consequently, this results in less disposable income for leisure activities and makes them four times more likely to experience financial hardships.
Much of this challenge arises from the inability to share living expenses. According to the Hargreaves Lansdown (HL.L) Savings & Resilience Barometer, single individuals allocate 34% of their income to housing costs — including rent, mortgage, council tax, and utility bills — whereas couples spend only 23%.
Additionally, singles incur 28% higher per capita costs on groceries, as they cannot take advantage of bulk buying or consume family packs before expiration. They also spend 32% more on communication services, covering broadband, landlines, and mobile phones.
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In many instances, singles require the same services as couples but must bear the entire cost. This leads to tighter budgets each month under fixed expenses.
As a consequence, they often need to forgo many enjoyable experiences. On average, singles spend 21% less on dining out and hotels in the UK (despite the single supplement often charged), along with 13% less on clothing and recreation.
Despite these reductions, singles end up with significantly less disposable income at the month’s end — averaging £42 compared to £383 for couples, leaving them with fewer resources for savings.
It’s recommended to have enough savings in an accessible account to cover three to six months of essential expenses, but 46% of singles fall short of this compared to just 16% of couples.
Moreover, saving for a home becomes considerably challenging for singles, especially as they bear the entire deposit cost. This results in singles being less than half as likely to be on track for home ownership (18% vs. 43%). Long-term impacts are evident as well, with only 31% of singles on course with their pension savings compared to nearly half (44%) of couples.
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However, there are several strategies that singles can employ to cut costs and save money.
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Take advantage of council tax discounts — single residents receive a 25% reduction.
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Consider installing a water meter — this can help save money if you have more bedrooms than occupants.
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Add a parent as a secondary driver on your car insurance policy.
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Maximize the use of your freezer for food storage.
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Share subscription services with a friend to save money.
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Seek assistance when purchasing a home, whether from friends, family, or through a Lifetime ISA, which provides up to £1,000 per year as a government bonus.
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Instead of dwelling on what you can’t afford, focus on what is within your budget. Gradually, you’ll achieve your goals.
