Investing with a single income
Single people in the UK are finding it hard to save towards their future, with a recent survey revealing that less than half of them are investing enough of their income to secure comfortable retirement funds.
Research from Scottish Widows Research highlights people in single households who are finding it hard to put money aside for retirement. In total, the survey identified more than six million adults who earn just enough to cover monthly bills – but little else.
It has also become apparent that one in five young people (under 30) currently save nothing towards their later lives.
Since 2010, in the aftermath of the global financial crisis, incomes stagnated and house prices, rents and the cost of living have all continued to rise.
This means that those who live alone can find it very difficult to put money aside for their retirement.
Why is it hard for singles to save?
There are many other reasons why it’s difficult to save if you’re not married or co-habiting.
For starters, you do not enjoy any economies of scale. Only one income comes into the household.
And when two or more people are in a household it’s possible to buy in bulk and enjoy discounts. There are also the obvious benefits of splitting the core bills, such as gas, electric, council tax and water. Travel, holidays and big-ticket items likes cars are also shared expenses when you live as a couple or family unit.
More people are now living alone, and forecasts suggest the numbers will grow. That means more people missing out on saving for retirement.
The Scottish Widows report also found that single people do not feel confident they will be ever be able to save for a pension. That’s concerning, as the current state pension (2024/25) only provides around £11,502 per annum.
How can single people save more?
With limited income it’s always going to be difficult to save large amounts, especially with just one salary coming into the household each month.
Starting saving earlier is essential. Even small amounts add up, especially when tax advantages are enjoyed.
Whether the cash is put into a pension fund, ISAs or a higher rate savings account, the overall sum will grow – even when modest amounts are saved.
How we can help
For anyone needing independent advice about savings, investment and retirement planning, Logic Wealth Planning is here to help. And irrespective of whether or not you live alone, remember it’s never too late to start. As one of the North West’s most respected firm of independent financial advisors we’re here to give you friendly professional help and guidance.
To start the conversation why not call us to arrange a no obligation meeting at our expense. Tel 0808 123 4321.
Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.