Number of Brits living alone has doubled in 40 years

More Brits are living alone for longer with little or no financial back up plan should things go wrong, according to research from protection specialist LV=.
 
The way that we live has changed dramatically over the last 40 years with the number of single households more than doubling to 8.7 million UK adults, compared to 3.8 millionin 1974. This has happened against a steep increasing in living costs in recent years. The biggest rise in solo-dwellers is amongst those aged 35-44. In 1974 just 148,000 single households were made up of people aged between 35 and 44, this has since increased to 1.2 million.
 
Not only are more people living alone, but for longer too. Those in their 60s and 70s today will live alone for 10 years over the course of their lifewhile today’s young adults (aged 20-30) can expect to live alone for a total of 15 years. This is due to a combination of people living longer and lifestyle changes such as marrying later and higher divorce rates.
 
While rising divorce rates do contribute to this trend, of those living alone almost half (49%) do so either because they enjoy their independence, don’t feel ready to live with somebody else or prefer to live alone to help focus on their career.
 
However, the reality of living alone means that solo dwellers are faced with the full burden of the household’s living costs. People living alone fork out £1,826 a year more on housing and utilities than an individual in a couple, even with the single person’s council tax discount given to those living alone factored in. This is due to single households paying £1,392 more on mortgage and rent than someone living in a couple, £294 more on utilities and £140 more on household goods and services.Overall, a single dweller will spend 6% more compared to someone living in a couple household.
 
The impact of having to spend more on the cost of living means that solo dwellers have less money to spend on dining out, shopping and leisure activities, and less to put aside as savings. Having higher outgoings than couples also impacts on solo dwellers’ ability to save. As a result, the average couple household will have £6,000 in savings – three times more than the average solo dweller who has just £2,000 to fall back on.
 
Most worryingly, almost two thirds of all solo dwellers (60%) don’t have a financial back up plan, such as income protection, that would enable them to fund their lifestyle should they be unable to work. Of those who have a back up plan, close to a third (31%) say they would use their savings if they lost their job.
 
Yet at the same time, if left to rely on their savings, almost a quarter (24%) of solo dwellers claim that their savings would run out within a fortnight,suggesting thatmany back up plans would be inadequate if they are unable to work for a sustained period of time.
 
Richard Rowney, LV= Managing Director, Life and Pensions said, “People’s living arrangements are changing and more people are choosing to hold onto their independence for longer and live alone. Whilst the freedom of living alone has many advantages, it is important to realise the financial cost of independence. A worrying number of people do not have a sound backup plan, such as income protection, that would help them to meet their financial commitments if they were unable to work.
 
“Although some say that they would live on their savings, it is clear that what they have managed to put aside would not stretch very far. As 8.7 million people now live alone, that is a huge number of people in the UK who would find themselves in a vulnerable position if they lost their source of income. “Regardless of whether you live alone or with a partner, it is important to consider a protection policy that would enable you to carry on living in your home if the unexpected happened.”