According to Office for National Statistics (ONS) figures, 8.4 million people were living alone in 2023. This is 30% of all households in the UK [1].

With many more people enjoying a solo lifestyle with few ties, here's why it’s important to get serious about your finances early.

Living alone can be expensive
Footing the bill for all your household expenses alone can take its toll.
 
The Independent reports that, on average, a single adult spends £8,100 on housing, bills and groceries. Meanwhile, someone in a couple spends £7,800 [2].
 
With no one to help share the financial load, you may struggle to set money aside for savings or your pension.

Indeed, according to the Independent, while couples have an average of £385 left at the end of a month, single people living alone have an average of just £40 left over.

Saving for your retirement may be more challenging, and more important
When it comes to regular monthly expenses, your retirement will also be more expensive. 

Reporting on a 2024 survey, the FTAdviser revealed that:

• 52% of single UK adults feel anxious about meeting their retirement goals
• 56% of the group said “relying solely on their own income and savings made it more challenging to save for retirement” [3].

Whether you’re single or in a committed relationship, the sooner you start saving for your retirement the better.

This is particularly true for singles.
 
According to the Pension and Lifetime Savings Association (PLSA), singles need a retirement income of £31,300 a year to enjoy a moderate standard of living. This allows a degree of financial security and flexibility, one foreign holiday a year, and a few meals out each month [4].
 
For the same lifestyle, a couple would need £43,100. Split evenly, this would mean that each person would need a pension pot capable of generating £21,550 – almost £10,000 less each year [5].

We can help you understand how much you need to save to achieve your desired lifestyle and devise a personal financial plan so you can plan for a sustainable income throughout retirement.

Make the most of tax allowances
While you may not have the benefit of doubling your tax efficiency with a partner, there are tax allowances that you can use to optimise your savings and investments. 

For example:

• Use your ISA allowance (£20,000 in 2024/25)
• Crystalise gains up to your Capital Gains Tax annual exemption of £3,000 (2024/25)
• Take dividends up to your Dividend Allowance of £500 (2024/25)
• Make the most of your annual Inheritance Tax (IHT) gifting allowance of £3,000, if your estate will be liable for IHT.

Making the most of tax reliefs can help you to retain more of your wealth, allowing you to progress towards your financial goals.

Check you have the right level of financial protection

As a couple, if you or your partner had to take time off work because of an accident or ill health, there’d likely be a second income to fall back on.

However, if you’re single, you’ll need to continue to meet your financial commitments even if you are unable to work.
 
So, it’s vital to ensure you have appropriate protection in place.
 
When life throws a curve ball, it can be reassuring to know you’ve a financial safety net to help maintain your lifestyle when you really need it.

In particular, critical illness cover or income protection could help you to continue to meet your regular financial obligations. Payments could also help you to maintain regular savings or pension contributions.

Get in touch

Whatever your relationship status, having a personal financial plan can help you achieve your life goals.
 
To find out more about how a financial planner can provide valuable support, please get in touch. Email [email protected] or call us on 0800 048 0150.

Please note 
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, cashflow planning, or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
 
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
 
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
 
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

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