Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, comments on the reasons for the gap in savings between households containing singles and couples.

Figures from the HL Savings & Resilience Barometer, show that couples have four and a half times as much cash left at the end of the month each as single people – and save four times the percentage of income. Couples only have just over twice as much in savings and current accounts per person, and 1.2 times as much in cash ISAs. However, single people fall short on investment – couples have three times as much in stocks and shares ISAs each.

Sarah Coles, head of personal finance, Hargreaves Lansdown says:

Living on your own is horribly expensive, and your money is pulled in every direction. When you’re handling so many demands, it doesn’t feel helpful to be told you’re falling short when it comes to investment – it just feels like yet another thing you have to deal with on your own. Fortunately, single people are exceptional savers, so the solution may not be as hard as it seems.

They may be reluctant to invest because they’re concerned about taking a risk. When you’re in the frame for everything on your own, it can be difficult to consider anything other than the option you consider to be safest. However, while there is risk involved in investment, it’s important not to over-estimate the risk of losses over the long term. When you’re investing for 5-10 years or more, there’s far more chance your investments will grow. It’s also key not to lose sight of the fact that cash savings can lose value after inflation.

It can also be more difficult to consider the long term when you are personally responsible for managing the short-term on your own. However, if you can make space for ‘future you’ in your plans, you’ll be incredibly grateful for it further down the line. It doesn’t have to be a huge commitment, because you can set up a direct debit to put aside as little as £25 a month into a stocks and shares ISA, and paying in little and often will see your investments build gradually, without taking a toll on your finances today.

Full press release: The singles ISA gap

Media Contact:

Sarah Coles
Head of Personal Finance and Podcast host for HL’s Switch Your Money On
Email: sarah.coles@hl.co.uk 
Work Tel: 07971 073 899