- The financial cost of being single can make saving for retirement more difficult, particularly for those who live alone
- 45% of UK adults in midlife (45-54 years) say retirement planning is easier in a long-term relationship (vs 16% who disagree)
- 48% of midlifers in a relationship are regularly saving for retirement, compared to 37% for singles
- Census data shows the proportion of one-person households in the UK has decreased over the last decade, except among people in their late 50s and 60s – the key pre-retirement life stage
Phoenix Group’s longevity think tank Phoenix Insights has carried out research to explore how relationship status can affect retirement preparations, and highlights the importance of reviewing finances and planning ahead when income is squeezed.
The nationally representative sample of UK adults aged between 45-54 (“midlifers”), found nearly half (45%) think it is easier to plan ahead for retirement when you’re in a long-term relationship. Just 16% disagree with this.
The financial cost of being single can make saving for retirement more difficult, particularly for those who live alone and pay living costs – such as rent, mortgage, utilities and food – from one income. Figures from the ONS found people who live alone spend on average 92% of their disposable income each month, compared with people in two-adult households who spend only 83%**. This leaves less money to put towards their long-term savings.
The research also looked at who is regularly saving for retirement. 48% of midlifers in a relationship are regularly putting money towards their future retirement income, compared to 37% who are single.
Phoenix Group’s Patrick Thomson, Head of Research and Policy at Phoenix Insights, comments:
“Single people typically pay more on bills and other daily expenditures than those in a couple with two incomes where costs can be shared. This squeeze on income not only affects short-term finances but can have knock-on effects on the ability to save for retirement. The cost-of-living crisis has squeezed incomes further so it’s more important than ever that people take stock of their current and future spending needs and put a plan in place for their long-term savings.
“As many as 18 million people in the UK are not adequately financially prepared for retirement*** so regardless of relationship status, there is a pressing need for people to take steps to boost their long-term savings. Often simply thinking about finances is the greatest challenge of retirement planning, and kick-starting this journey will enable people to be better prepared for their future.“
Pre-retirement age group buck trend in living alone
Figures from the 2021 census shows the proportion of one-person households in England and Wales has decreased since 2011 in all age groups apart from the mid-50s to 60s group which has seen an increase****. The increase is most pronounced among those aged between 60-69, a crucial pre-retirement life stage with people planning for and entering retirement.
Patrick Thomson continues:
“While the UK has generally seen a fall in the number of people living alone over the last 10 years, the age group closest to retirement has bucked this trend. There could be many factors at play for this, including later life divorce and separation, and this could make retirement saving more difficult if facing increased living costs. Those who find it harder to keep saving as they approach retirement age can seek further guidance from their pension provider or free online service such as MoneyHelper”
