This is a sponsored article written by Sophie Ryan, iSelect Spokesperson
Did you jet to Australia solo? Living alone in the land down under? Being single can definitely have its perks, but when it comes to finances, new research by comparison service iSelect suggests that singles surveyed with no kids are paying an additional estimated $7,691 more per year on average in a ‘Singles Tax’ for housing and household bills, compared to individuals in a couple with no kids![1]
Yikes. That’s a lot of extra dough – especially during these financially challenging times. But don’t despair! Read on as we delve into the results of this study and explain how to reduce the ‘Singles Tax’.
SINKs v DINKs
For this study, Australians surveyed on a single income with no kids (SINKs) and those living in a double-income household with no kids (DINKs) were asked how much they’re spending on common bills and expenses. These included mortgage repayments, rent, power bills, health and car insurance. Broken down by the month, the survey found that a SINK on average spends an estimated $2,198.93, while a DINK spends $1,557.99 – a 41 per cent difference between the two households.[1]
Ways to lower your ‘Singles Tax’
OK, so it’s nice to be able to share your bills some someone else, but does that ‘Singles Tax’ figure need to be that high? Not necessarily. No one wants to be shelling out more than they need to on household bills and expenses, but that’s exactly what you could be doing if you’re not regularly reviewing them.
Singles could find savings or better value on some common household bills and expenses if they take some time to compare their options on a range of plans and providers – like their health insurance, energy deal or car insurance. If it’s been a while since you checked your plan/policies, you could be paying for things you don’t need.
Moving on now to our next tip, which is to forget about ‘loyalty’. We know, it’s a great personal quality to possess, but it’s a common misconception that loyalty is rewarded when it comes to insurance and/or utility providers. In fact, providers often offer better rates/premiums to attract new customers than what are available to existing customers. So don’t be afraid to shop around and switch if it means saving money or getting better value.
A few other hacks to consider when trying to save money is to think about whether you could afford to go for a higher excess on your policy, such as health insurance. Some funds may offer you lower premiums if you opt for a higher excess. If you think it’s unlikely you’ll be admitted to hospital anytime soon, that could be one to consider. Also, at certain times of the year, insurers may offer deals and incentives to attract new customers, which could be a good time to shop around and take advantage.
And look, just because it’s the SINKs being slugged with this extra ‘tax’, the study also revealed that 61 per cent of SINKs and DINKs surveyed say they feel pressured financially, so if you’re a DINK following these tips could be well worth it for you too![1]
Although it may seem like a chore, reviewing your household plans and providers regularly can really make a quick difference to the hip pocket and help you take control of your finances. So, now could be a great time to get cracking! And remember, whether it’s your energy plan, home and/or contents insurance, health insurance policy or your home loan, a comparison service such as iSelect* can help you compare your current deal against a range of plans and providers.
Disclaimer
[1] Source: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 6 April and 13 April 2023. The sample is n=2,112 Gen Z’s and Millennials aged 18-43 comprised of a nationally representative sample of 1,000 singles living alone and 1,112 couples living together, no kids
*iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of Providers.
