The financial cost of being single can make retirement more difficult, says think tank Phoenix Insights, with those in their 50s and 60s most affected.
Research data reveals that the proportion of one-person households in the UK has decreased over the last decade except for people in their late 50s and 60s.
The increase was most pronounced for those aged between 60 and 69 – a crucial pre-retirement life stage with people planning for and entering retirement.
Those living alone have to shoulder more costs, such as rent, utilities and income which can place greater pressure on retirement income. According to figures from the Office for National Statistics, people who live alone spend on average 92% of their disposable income each month, compared with people in two-adult households who spend 83%.
Patrick Thomson, head of research and policy at Phoenix Insights, said: “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.”
The research found that 45% of UK adults in midlife, aged between 45-54, say retirement planning is easier in a long-term relationship. This compared with 16% who disagree.
Phoenix Group said nearly half (48%) of midlifers in a relationship are regularly putting money towards their future retirement income, compared to 37% who are single.
Thomson added: “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.”
