Lizzie Lavan, Senior Content Writer at Raisin UK, shows us how even modest savings can help people feel more secure about their financial future.
It won’t exactly be news to singles. But new research by Raisin UK highlights the significant financial gap faced by singles and solo-dwellers, compared to couples. With 8.4 million people living alone in the UK in 2023, this makes up a huge 30% of all households, and these figures are only growing.
So, how much exactly is the so-called Singles Gap? According to the data, singles would need to find an extra £10,640 annually to match the average couple’s expenses. And let’s face it – that’s a lot of extra cash that could be used otherwise to save, invest, or simply pursue financial stability.
And whilst not everyone aspires to the picket-fence lifestyle, it wasn’t long ago that this was perfectly achievable on the average salary, rather than a pipe dream. Looking at how much it would cost, on average, to have a mortgage on a two-bed semi, own and run a car and have enough money to comfortably follow the 50/30/20 rule (where 50% of your monthly income is spent on essential needs, such as bills, housing and food, 30% is on wants, and 20% on savings), the data shows that singles would need a gross income of £71,260 – well above the UK median salary of £32,963.
Couples, on the other hand, ‘only’ need a yearly income of £36,875 each to comfortably cover these monthly expenses. This is due, of course, to the ability to split expenses such as housing, bills, and other essentials, which couples can divide between two incomes. While the average single person’s monthly expenses are about £2,100, couples pay £2,424, or £1,212 each when split 50/50, meaning singles must find an additional £886 each month to ‘keep up with the Joneses’ – and showing it can truly pay to be in a relationship.
Housing also complicates matters. Securing a mortgage is particularly challenging on one salary, with less than a third of first-time buyers in 2023 being single-person households. For those renting instead, renting a two-bedroom property costs singles £1,772 per month, while couples split a £2,097 rent, leaving them with £723 more disposable income each month. This extra income allows couples to save, invest, or spend more freely compared to single renters, who are stuck in the rent cycle and may struggle to save for a home.
While the cost of living crisis and housing challenges aren’t likely to ease soon, even modest savings can help anyone feel more secure about their financial future. Singles (and couples alike) can take advantage of the current relatively high savings rates by using flexible savings accounts to accumulate small amounts over time and ‘top up’ their savings where possible. Deposit platforms, like Raisin UK, can make it easy to manage multiple savings accounts – from flexible easy access to more long-term fixed rate products – under one roof, which can provide some peace of mind.
