- One in three (29.5%) households included a single person living alone in 2025, equating to around 8.6 million people – up from 7.7 million in 2015 (Source: Families and households in the UK: 2025 – Office for National Statistics)
- The number of people living alone has grown fastest among households over the age of 65, which make up half (49.6%) of those who live alone – an increase from 46.9% in 2015
- Two thirds of families (65.3%) include couples who are married or in a civil partnerships but 3.5 million, equivalent to 17.6%, include unmarried cohabiting couples – up from 3.2 million a decade earlier
- 3.8 million people aged 20-34 (or 28.7%) still live with their parents, up from a quarter (25.4%) in 2015 – including over a third (34.9%) of young men and almost a quarter (22.3%) of young women
- There are significant financial implications for people in all of these scenarios, including on the ability to purchase a home, build up pension wealth or invest in the stock market
Sarah Coles, head of personal finance at AJ Bell, comments:
“Changes in our health, habits and house prices risk making our financial lives much harder.
“More people are living alone, and a big part of the growth has been those who become single in later in life. The rise of silver splitters is playing a part, but much of this trend is due to health improvements prolonging our lives. Sadly, life expectancy is lumpy, so there’s every chance one member of the couple will be left to fend for themselves.
“Meanwhile more couples are living together without getting married, and while it’s nobody’s business but theirs whether they get married or not, they face real risks that could land them in financial hot water.
“Finally, soaring house prices are making it harder for younger people to fly the nest, which has significant financial implications for every member of the family.
Living alone
“The rise in the number of people who are living alone takes a financial toll. The cost of buying a home on your own means those who want to take the step without help can spend years prioritising building a property deposit, and then decades with a hefty mortgage bill – along with all the other financial burdens of running a home alone. It can mean they end up neglecting other vital areas of their finances – like emergency savings, pensions and investments.
“Almost half of those living alone are aged 65 or over. If you end up retiring alone, you’ll need more money than each member of a couple will, because you need to cover the household bills on your own. If you’ve always lived alone, you’ll face the double hit of having less financial firepower throughout your adult life, but a tougher target to hit for a comfortable retirement.
“While you’re still working, it’s worth regularly revisiting your retirement plans, to see if you’re on track. If you’re falling short, you still have time to boost your pension contributions a little each month and build enough income over time. If money is too tight for this, whenever your circumstances change or you get a pay rise, you’ll have a chance to focus on the unloved parts of your planning.
“Once you retire, it may also be worth exploring whether you’re eligible to receive additional support from the government to cover essential spending, such as pension credit or winter fuel payments. Those receiving pension credit will also qualify for a range of other benefits, so it’s worth checking to see if you fit the criteria and filing an application via the government website.
Not getting married
“While married couples still account for the majority of households, the number who are cohabiting without getting married has risen significantly, so it’s worth understanding that this comes with risks.
“Unmarried couples don’t have the same rights as their married counterparts. If you split up and one of you owns the house, the other may be forced to leave with nothing. If you have children together and one of you has done the lion’s share of the caring, you may have uneven savings, investments and pensions, and no right to a share of your partner’s wealth. When one of you dies, there are no automatic inheritance rights either, so depending on how you hold various assets – including your home – you could lose everything.
“It’s why it can be a good idea to draw up a cohabitation agreement from the outset. This will lay out how things should be divided in the event of a split. You should also make a will, laying out what you want your partner to inherit when you die.
Stuck at home
“Rising property prices means more young people are still stuck at home – particularly young men. This can be difficult to navigate for everyone involved, but it’s not just about having to live with the daily habits of your adult offspring, there are financial issues too.
“Some of this trend comes down to people studying for longer and marrying later, but rising house prices shoulder a huge share of the blame. When rents are sky-high and buying is out of reach, many young people have no choice but to stay put.
“Moving out and buying a place means taking on a huge amount of debt, and in many cases spreading it over 30 years. Doing so in their 30s means paying a mortgage until much later in life than their parents. It can mean they have far fewer years when their outgoings drop and they can boost their pension or invest for the future, so they could face some nasty shortfalls when they reach retirement.
“Their parents also face challenges. Some may have wanted to downsize when the kids left home, so they could supplement their retirement income. Having the kids around for longer could mean they need to stay put and continue working longer than planned. They will also be facing higher running costs, which can mean they struggle to focus their finances on retirement planning as they get older, which could result in having to postpone retirement even further.
“If you’re in this position, you can negotiate with your adult children to see what they’re prepared to put towards household costs. If they’re living with you for the long term, they could pay at least a nominal rent. This should help you meet everyday costs or fund your pension. Alternatively, you could put this money aside and build a pot to help them with a house purchase, speeding up the process dramatically. One option could be to arrange for £4,000 of this to go into a Lifetime ISA this year, so they get the government bonus to go towards buying a home of their own.”