Industry experts have suggested that a retirement planning shift is needed, after figures from the Office for National Statistics (ONS) revealed an increase in co-habiting and single person households.

The data showed that opposite-sex cohabiting couples were the fastest growing family type over the past 10 years, making up 18% of all families in 2022, up from 16% in 2012.

One person households were the second most common type of household, accounting for 30 per cent UK households in 2022, around 8.3 million households, up from 29%, or 7.7 million households, in 2012.

Women continued to account for the majority of those living alone age 65 years and over (64%), although this proportion has fallen from 69% in 2012.

Hargreaves Lansdown head of retirement analysis, Helen Morrissey, highlighted the latest figures as demonstration of a continued shift in the UK’s living patterns, arguing that a retirement planning shift is needed in line with this.

“These shifts turn traditional financial planning on its head,” Morrissey stated.

“A cohabiting couple has different rights to one that is married or in a civil partnership, while a single person needs to make further provision to secure their financial resilience, and this can cause challenges.”

Morrissey also noted that whilst many people believe that once they’ve lived together for a period of time, they acquire common-law marriage status, this isn’t the case, warning that without appropriate financial planning cohabiting couples can be at real risk of financial detriment should one partner die.

Although Hargreaves Lansdown acknowledged that many pension providers will pay out death benefits to a cohabiting partner, it clarified that this it isn’t guaranteed, arguing that it is therefore “vital” that expression of wishes forms are kept up to date.

The provider also suggested that small shifts are also needed in light of the increase in single households, encouraging savers to up their pension contribution whenever they get a pay-rise or move jobs.

“For many people, living alone isn’t a long-term thing but for many others it will be, and the reality is they will need to contribute more to their pensions to enjoy the same standard of living as couples,” it stated.


This article first appeared on our sister title, Pensions Age.

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