People who are single often have extra costs when they pay for housing, utilities, insurance, and other expenses on one income. Often called the “single tax,” these costs can create a higher cost-of-living. Singles may also miss out on certain spousal benefits or economies of scale that married couples can access. While being single can raise costs when compared to married counterparts, it does not have to derail long-term financial security.

Why More Americans Need Single-Person Financial Planning

In their 2025 supplemental survey, the Census Bureau found that fewer than half (47%) of U.S. households were married couples. Of the 53% of unmarried households, 29% were one-person households, making financial planning for singles and unmarried partners a mainstream planning issue!

The Biggest Financial Costs of Being Single

Housing Costs Are Harder to Split

Housing is the largest cost that single people face. If you live alone, you cannot split rent, mortgage, utilities, or other expenses with a partner. While this can be eased by living with roommates, lifestyle alignments and personal conflicts can make living with others easier said than done.

The singles tax hits housing particularly hard. According to Zillow, renters who live solo pay an average of over $10,000 per year more than renters who live with others.

Although living alone is expensive, there are several planning moves that may mitigate prices:

• Consider house hacking (renting out part of your home for income)
• Carefully compare renting vs buying
• Consider roommates or co-living if aligned with lifestyle
• Keep housing below a sustainable share of income
• Be flexible on location when possible

One Income Has to Cover Every Emergency

When emergencies happen, like job loss, unexpected medical costs, or family obligations, costs can hit harder when there is no second household income. Having one income cover both day-to-day expenses and larger unexpected costs can lead to more financial strain.

When emergency costs arise, there are several planning moves to consider:

• Target a higher emergency fund
• Maintain short-term disability coverage when available
• Keep high-interest debt low
• Build backup income options
• Avoid overcommitting to fixed expenses

Taxes Can Work Differently for Singles

Single filing status has different brackets and standard deduction amounts. While the claim that singles always pay higher tax rates isn’t true, married people can save on taxes by filing jointly. If a married couple has a large salary difference, filing jointly can be beneficial. However, if a married couple that makes similar salaries, the difference between joint and single filing is negligible.

Your taxes will depend on a variety of factors including income, location, deductions, dependents, and other factors. For advanced tax planning strategies, consult with a specialist.

Social Security Benefits May Be More Limited

Never-married singles generally rely on their own Social Security earnings record. However, married, divorced, or widowed individuals may qualify for spousal or survivor benefits. These benefits allow people to gain access to both their Social Security earnings as well as their spouses.

Retirement Planning Requires More Self-Reliance

Single people need to create their own retirement income streams. They will not have access to their spouse’s pension, retirement savings, or employment-sponsorship plans unless they qualify for survivor benefits. Shared household expenses are also now put on one income stream.

Luckily, your retirement goals are still achievable, regardless of relationship status. If you’re single, you can still maximize your retirement savings by:

• Saving early and consistently
• Maximizing employer retirement matches
• Considering IRA and Roth IRA strategies
• Modeling retirement on one income
• Planning for long-term care
• Stress-testing healthcare costs and inflation

Healthcare and Long-Term Care Need Extra Attention

When needed, a spouse often acts as a caregiver, advocate, or decision-maker. Single people should plan specifically for care coordination, healthcare directives, and long-term care costs. For end-of-life care, trusted contacts and coordination should be considered.

If you’re single, consider long-term planning strategies such as:

• Review health insurance options annually
• Consider long-term care planning
• Name healthcare decision-makers
• Keep medical and legal documents accessible
• Build a care network

Estate Planning May Be More Urgent

In the event of death, married people have a default spouse to act in financial or healthcare matters. The spouse can help oversee the estate plan. For singles, estate planning becomes imperative, especially who can act for them after death.

Estate planning as a single person should be holistic with careful considerations. Documents and decisions to think about include:

• Will
• Trust, if appropriate
• Financial power of attorney
• Healthcare power of attorney
• Advance directive
• Beneficiary designations
• Executor
• Trustee
• Emergency contact list

The Financial Advantages of Being Single

Despite the higher costs of single life, there are advantages to being single. There are unique monetary advantages as your budgeting and money is 100% yours.

More Control Over Spending

Singles may not need to negotiate spending priorities with a partner. Household items, food, and day-to-day expenses can be more spontaneous.

Simpler Budgeting

Having one income and one set of goals can make some financial decisions clearer.

Flexibility Around Career and Location

Single people may have more flexibility to relocate, change jobs, travel, or adjust lifestyle.

Clear Ownership and Decision-Making

Asset ownership, account management, and spending decisions may be simpler than in a blended household or second marriage.

Special Planning Notes for Single Parents

Financial planning becomes even more complicated for single parents. Single parents face the same single tax issues that child-free singles do, but with the added considerations of childcare, education, guardianship, and protection planning.

For single parents, planning priorities may include:

• Review head-of-household tax status with a tax professional
• Build a larger emergency fund
• Review life insurance
• Name guardians for minor children
• Update beneficiary designations
• Create a will
• Coordinate education savings
• Protect disability income
• Keep estate documents current

Single-Person Financial Planning Checklist

Cash Flow

• Track fixed expenses
• Separate needs, wants, and goals
• Keep housing costs sustainable
• Create room for savings

Emergency Fund

• Aim for a stronger cash reserve
• Account for job loss, medical costs, and family support
• Keep funds liquid and accessible

Debt

• Prioritize high-interest debt
• Avoid relying on credit cards for emergencies
• Refinance or consolidate only when it improves the plan

Retirement

• Automate retirement contributions
• Maximize employer match
• Review investment allocation
• Model retirement income on one person’s savings

Taxes

• Review withholding
• Plan around capital gains, deductions, and retirement contributions
• Coordinate with a tax professional when income or investments become more complex

Insurance

• Review health, disability, life, property, liability, and long-term care coverage.

Estate Planning

• Name decision-makers
• Update beneficiaries
• Store documents securely
• Share key information with trusted contacts

How to Reduce the Cost of Being Single

• Build a one-income budget. Focus on fixed-cost control, automatic savings, and emergency planning.
• Maximize every workplace benefit. Max out employment retirement, HSA, and FSA accounts.Consider utilizing work benefits such as insurance plans, legal benefits, and employee assistance programs.
• Be strategic with housing. Whether you rent or buy, downsize or relocate, share housing or live alone, plan your housing wisely. Consider what will work best for your needs and your budget.
• Plan taxes before year-end. Consider your contributions to employer-sponsored plans, charitable giving, tax-loss harvesting, and income timing where appropriate.
• Protect your income. If you qualify for disability benefits, disability coverage can be particularly useful when there is no second household income.
• Build your advisory team. You don’t need to handle finances alone. Financial advisors, tax and insurance professionals, and estate attorneys can all be valuable members of your financial team.

When to Work With a Financial Advisor

Single people may benefit from coordinated planning because every major financial decision relies on one person’s resources and support system. A financial advisor can help create a holistic plan, including:

• Budgeting and savings targets
• Retirement projections
• Tax-aware planning
• Investment allocation
• Insurance review
• Estate planning coordination
• Social Security decisions
• Long-term care planning
• Cash-flow stress testing

Being single can come with higher costs and fewer built-in financial safety nets, but a tailored plan can help protect income, control expenses, and save for long-term goals. If you’re curious about how a financial advisor can help you, meet with a specialist at Wealth Enhancement today.

Frequently Asked Questions About the Cost of Being Single

What Is the Singles Tax?

The singles tax is a term for the extra costs single people may face because they cannot split expenses or access certain financial benefits available to some couples. It is not an official tax.

Is Being Single More Expensive?

It can be. Housing, utilities, insurance, travel, and emergency costs may be higher per person when one person pays alone. The exact impact depends on income, location, lifestyle, taxes, and support network.

Do Single People Pay More in Taxes?

Not always. Single and married filing jointly statuses have different tax brackets and deduction amounts, but the result depends on the person’s income, deductions, credits, dependents, state taxes, and investments.

How Does Being Single Affect Social Security?

Never-married singles generally rely on their own earnings record. Married, divorced, and widowed people may qualify for spousal or survivor benefits if they meet Social Security rules.

How Much Should a Single Person Have in an Emergency Fund?

A single person may want a larger emergency fund than a dual-income household because there may be no second income to fall back on. A common target is several months of essential expenses, adjusted for job stability, health, debt, and family obligations.

Why Is Retirement Planning Harder for Singles?

Singles often need to build retirement income without a spouse’s savings, pension, Social Security benefit, or shared expenses. That makes savings rate, tax planning, healthcare, and long-term care planning especially important.

What Estate Planning Documents Do Single People Need?

Many single people should consider a will, financial power of attorney, healthcare power of attorney, advance directive, beneficiary designations, and possibly a trust. Work with an estate attorney for legal guidance.

Can Single People Build Wealth Faster?

Yes, in some cases. Singles may have more control over spending, career choices, investing, relocation, and lifestyle decisions. The key is building a plan that accounts for one-income risk.

Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor and affiliate of Wealth Enhancement Group. This article was orginally published on 9/17/2023 and has been updated.

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