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 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 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. House prices, rents and the cost of living all continued to rise.
When you live alone, many factors make it hard to put money aside. With Brexit casting uncertainty on so many aspects of British life, the situation does not look likely to change soon.
Why is it hard for singles to save?
There are many other reasons why it is difficult to save if you are not married or co-habiting. For starters, you do not enjoy any economies of scale. Only one income comes into the household.
With two or more people 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 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 state pension will only provide around £8,700 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.
And remember, it’s never too late to start.
For anyone needing independent advice about savings, investment and retirement planning, Logic Wealth Planning is here to help.
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Pop in and see us, or start the conversation with a phone call. We’re on 0808 1234 321, or email email@example.com if you’d like us to get back to you.
Wise words about money from one of the North West’s most respected firm of independent financial advisors.