{"id":39290,"date":"2025-04-10T13:55:00","date_gmt":"2025-04-10T13:55:00","guid":{"rendered":"https:\/\/www.lifeandnews.com\/articles\/?p=39290"},"modified":"2025-04-23T04:15:46","modified_gmt":"2025-04-23T04:15:46","slug":"tax-day-highlights-the-costs-of-single-living-but-demographics-are-forcing-financial-change","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/tax-day-highlights-the-costs-of-single-living-but-demographics-are-forcing-financial-change\/","title":{"rendered":"Tax Day highlights the costs of single living \u2013 but demographics are forcing financial change"},"content":{"rendered":"\n

Peter McGraw<\/a>, University of Colorado Boulder<\/a><\/em><\/p>\n\n\n\n

Tax Day is right around the corner \u2013 an annual reminder that without the option to file jointly, singles pay more per dollar earned<\/a> than married people. Tax advantages are just one of over 1,000 legal and economic benefits<\/a> married couples enjoy, a disparity worsened by marketplace and employer practices<\/a>.<\/p>\n\n\n\n

Despite its disadvantages, single living is on the rise. While the average age of first marriage was just 21 in 1960<\/a>, today it has risen to 29<\/a>. Half the adults<\/a> in the U.S. are unmarried, and half of them<\/a> aren\u2019t seeking a relationship. As many as a third of Zoomers<\/a> may never tie the knot.<\/p>\n\n\n\n

But this shift is more than cultural \u2013 it\u2019s redefining the rules of personal finance. Freed from the constraints of shared decision-making, single people are earning, spending and investing on their own terms.<\/p>\n\n\n\n

And as a behavioral economist who studies single living<\/a>, I think this could mean big things for the future of money. As more people opt out of marriage, I expect that governments, businesses and financial systems will adapt \u2013 just as they did in response to women\u2019s economic independence<\/a>.<\/p>\n\n\n\n

The price of singlehood<\/h2>\n\n\n\n

As a lifelong bachelor<\/a>, I have a cheeky response when filing my taxes: \u201cThat\u2019s the price of freedom.\u201d<\/p>\n\n\n\n

For many singles, the price is too steep. More than half of singles over 30 feel financially insecure<\/a>, one survey found, and their economic reality backs it up. For example, singles spend about US$5,500 more annually<\/a> than their married peers \u2013 which adds up to more than $200,000 over a 40-year career.<\/p>\n\n\n\n

Some of the challenge is mathematical<\/a>. Married couples split major expenses like housing, transportation and travel, and rely on dual incomes as a buffer against job loss or disability.<\/p>\n\n\n\n

Policy amplifies the financial burdens. One-person households are the most common type<\/a> in the U.S., yet developers still prioritize building large single-family houses<\/a> \u2013 driving up apartment and condo costs. Retirement presents another stark contrast. Singles can\u2019t claim<\/a> spousal or survivor Social Security benefits and solely fund their retirement.<\/p>\n\n\n\n

Employers design benefits around families<\/a> \u2013 offering spousal coverage, dependent tax breaks and family leave. Single employees tend to shoulder more responsibilities<\/a> yet receive 3.6 fewer paid<\/a> days off per year than their married peers.<\/p>\n\n\n\n

In the marketplace \u2013 from travel to tech and insurance \u2013 businesses often price goods and services with couples and families in mind<\/a>. Solo travelers often pay single supplements<\/a> on cruises and tours. Streaming, phone and retail memberships offer \u201cfamily plans\u201d with no option for solo users subscribing as part of a group. Even auto insurance penalizes solo drivers \u2013 two-door cars cost 16% more to insure<\/a>.<\/p>\n\n\n\n

The costs add up \u2013 but the news for singles isn\u2019t all bad. <\/p>\n\n\n\n

The financial upside of going solo<\/h2>\n\n\n\n

I study how singles build financial security through the hallmarks of single living: autonomy and adaptability.<\/p>\n\n\n\n

An obvious financial factor is the cost of children. While some singles are parents, they\u2019re far less likely than married couples to shoulder the expense of raising a child \u2013 an outlay of more than $300,000 per child<\/a> before college.<\/p>\n\n\n\n

A key advantage: Singles have complete financial control. They choose how to earn, save and spend. There\u2019s less risk of absorbing a partner\u2019s credit card or student loan debt, covering for reckless spending, or facing the financial fallout of divorce.<\/p>\n\n\n\n

Career flexibility is another key advantage. Singles can more easily relocate for higher-paying jobs or lower-cost locales \u2013 freedom that enables powerful financial arbitrage. Many digital nomads, most of them single<\/a>, choose countries with lower costs and better quality of life.<\/p>\n\n\n\n

Singles also have greater control over when and how they retire. Unlike couples, who must coordinate timing and strategies, singles have more freedom to retire early, ride out a down market, or ease into semiretirement.<\/p>\n\n\n\n

Building a financial system for everyone<\/h2>\n\n\n\n

As a business school professor, I\u2019ve seen how slow business and government can be to respond to demographic shifts. The tax system won\u2019t change overnight \u2013 governments have long used the tax code to promote marriage \u2013 but other policies and practices will evolve. I believe the rise of singles \u2013 and the power of their votes and dollars \u2013 will make the status quo unsustainable.<\/p>\n\n\n\n

Scandinavia and parts of Asia are setting precedents. In Sweden, solo adults are recognized as a \u201cfamily of one<\/a>,\u201d with access to housing support, parental leave and pension benefits \u2013 no marriage required. Smart companies will also adapt to recruit and retain singles, who make up a large portion of the labor force<\/a>. I expect to see an expansion of single-inclusive offerings like caregiving leave, flexible work arrangements and individual-friendly health plans.<\/p>\n\n\n\n

Singles also build lifelong support systems outside marriage. Sweden again offers a glimpse of what might be: A landmark court case<\/a> recently granted life insurance benefits to a platonic partner, proving that legal protections don\u2019t have to hinge on romance.<\/p>\n\n\n\n

Housing remains another legacy system built for couples. While most new developments still prioritize single-family homes, markets like Japan<\/a> and Hong Kong<\/a> have embraced lower-cost micro-apartments with shared community spaces \u2013 an appealing model for solo dwellers. Some U.S. cities are beginning to experiment<\/a> with similar designs, signaling a shift toward more inclusive urban housing.<\/p>\n\n\n\n

China\u2019s celebration of solo living, Singles\u2019 Day<\/a> \u2013 held every year on 11\/11<\/a> \u2013 is now the world\u2019s largest e-commerce holiday, generating more sales than Black Friday and Cyber Monday combined<\/a>. The company that created it, Alibaba, promotes deals on single-serve appliances, one-way flights and self-care bundles.<\/p>\n\n\n\n

Western companies are catching on: Travel brands are waiving singles supplements<\/a>, restaurants are welcoming solo diners<\/a> with dedicated seating, and telecom companies are rolling out \u201cfriends and family\u201d plans that don\u2019t require a romantic partner<\/a>.<\/p>\n\n\n\n

Finally, I believe wealth management will respond to the rise of singles. While I\u2019ve found that most financial advice still assumes that people will eventually marry, solo earners need different strategies, such as bigger emergency funds, flexible housing options and proactive estate planning. Expect a wave of financial products designed for solo living, from retirement tools to mortgages built for one.<\/p>\n\n\n\n

As singles become the majority in many countries<\/a>, governments, businesses and financial institutions will adapt by necessity.<\/p>\n\n\n\n

The bottom line<\/h2>\n\n\n\n

As an advocate for singles, I am an optimist. Yes, singles pay more on Tax Day \u2013 among other challenges. But they also have one undeniable advantage: financial freedom. Singles can do more than survive in a system built for two \u2013 they can thrive.<\/p>\n\n\n\n

Americans are not going back to the 1960s. As solo living becomes the norm, financial systems will evolve. Governments will face pressure to modernize policy, businesses will launch products and services for one-person households, and financial professionals will adapt to better serve solo earners.<\/p>\n\n\n\n

The institutions that recognize this shift first will shape the future \u2013 for everyone.<\/p>\n\n\n\n

Peter McGraw<\/a>, Professor of Marketing and Psychology, University of Colorado Boulder<\/a><\/em><\/p>\n\n\n\n

This article is republished from The Conversation<\/a> under a Creative Commons license. Read the original article<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Peter McGraw, University of Colorado Boulder Tax Day is right around the corner \u2013 an annual reminder that without the option to file jointly, singles pay more per dollar earned than married people. Tax advantages are just one of over 1,000 legal and economic benefits married couples enjoy, a disparity worsened by marketplace and employer […]<\/p>\n","protected":false},"author":56,"featured_media":39291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,46,295,10,25,27,4,38],"tags":[2318,224,3006,885,891,886,860,314,9458,5431,4320,546,10022],"_links":{"self":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/39290"}],"collection":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/comments?post=39290"}],"version-history":[{"count":1,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/39290\/revisions"}],"predecessor-version":[{"id":39292,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/39290\/revisions\/39292"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media\/39291"}],"wp:attachment":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media?parent=39290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/categories?post=39290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/tags?post=39290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}