The high cost of being single in New Zealand revealed

Anyone who has been single for more than a month will know the lifestyle comes with challenges - from always being lumped on the uncomfortable sofa bed on holidays to endless questions about when you're going to settle down.

But a lesser talked about, but just as real, struggle is money. Believe it or not, it actually costs a lot more to be single. 

Talk to any renter in New Zealand and they will be well aware living with your partner saves a chunk of dough. 

The same goes for homeowners. Not only is getting, and paying, a mortgage easier with two incomes but saving for a deposit as a single person in New Zealand's main centres is nearly impossible. 

For example, the average cost of a house in Auckland is currently a whopping $1.3 million which means the standard 20 percent deposit would be $268,329. Even split between a couple it's a big ask - sitting at $134,000 each - but it's near impossible for a single person. And even if they did manage to save nearly $300,000 they would have to be earning around $200,000 to be able to service the mortgage - something which is unattainable for most New Zealanders.

Before we go any further it's important to define a single person. In this article, it means a person living alone. They could be in a relationship but for whatever reason are living on their own and thus carrying the burden of all the bills alone. 

Financial Advice New Zealand CEO Katrina Shanks told Newshub there are "definitely financial benefits for being a couple".

"You have two incomes coming into the household. This reduces the risk if one of you lose your income you still have at least one of the incomes to contribute to your costs," Shanks said. 

She said another benefit is saving on household bills because many are the same regardless of whether you're a couple or single. 

Couples can also bounce ideas off each other and help each other stay motivated, Shanks said. But she said there are some financial advantages to the single life. 

"You have total control of all your income and household expenditure which allows you to make changes to your financial situation without negotiating these changes. It may also mean that you don’t have to take on a partner's debt or their poor saving or spending habits."

Shanks also said single people can still share costs, for example by having flatmates or boarders. 

 "Single people are just as likely to obtain financial stability as a couple. Financial stability comes from your financial behaviours and the protections which you have in place. 

"Couples have the benefit of both shared incomes and sharing fixed costs however unless you have good financial behaviour and discipline this does not ensure financial stability," she said. 

Financial Advice New Zealand CEO Katrina Shanks.
Financial Advice New Zealand CEO Katrina Shanks.

Statistics New Zealand data shows people living alone spend on average $645 a week compared with $1249 a week for a couple or $625 each. 

It's worth noting the figure accounts for all household expenditures and not just bills but it highlights the added cost of being single.

And singles are also forking out more on bills according to IRD's 2019 Household Economic Survey. 

The survey shows a person living alone in Auckland spends on average $333 a week on rent or $416 a week on their mortgage. But a couple-only household spends $414 a week on rent and $608 on their mortgage or $207 and $304 each respectively. 

While housing is the most extreme example of how being in a relationship can save you money, it's far from the only one. Transport is also cheaper for couples, who spend on average $37 a week or $18.50 each compared with a whopping $51 for a single person. 

Gas and electricity are also cheaper, coming in at $37 a week for a couple compared with $28 for a single. 

One of the most notable savings is rates with couples spending on average $58 a week ($29 each) compared with $52 for a single. 

Utilities such as phone and internet are also cheaper as a couple with the average weekly spend sitting at $36 compared with $26 for a single. 

House and contents insurance is also much cheaper for two-person households with the average couple spending just under $32 a week, or $16 each, compared with $28 for a single person. 

However there is some good news, not everything is significantly more expensive as a single person. For example, food expenses are fairly similar for solo households versus couples. A single person spends on average $135 a week on food and groceries compared with $263 for a couple or $131 each. Clothing and footwear are also fairly similar with a single person spending on average $68 a week compared with $128 for a couple or $64 each. The same goes for private vehicle costs which come in at $73 a week for a couple ($36 each) compared with $38 for a single.

The high cost of being single in New Zealand revealed
Photo credit: Getty Images

Vehicle insurance is also fairly similar at $21 for a couple and $11 for a single but medical insurance is significantly cheaper for couples costing on average $52 a week or $26 each compared with a whopping $53 for a single. 

Other insurance including mortgage, income protection and pet insurance is much cheaper for couples, who spend on average $45 or $22.50 each a week compared with $40 for a single.

Medical and health expenses though are also fairly similar with a couple spending $91 a week compared with $49 for a single. 

One of the only areas where singles appear to save money is property maintenance spending on average just $36 a week compared with a whopping $153 for couples or $76 each. 

Singles are also saving on life insurance, spending just $12 a week compared with $47 for couples. But it's worth noting this is using data showing expenditure, not the cost of the service, which could just mean single people are less likely to have life insurance. 

The cost of solo living has been extensively covered overseas and the Guardian recently highlighted the added costs dumped on single people through tax in the United Kingdom. 

Thankfully for singles in New Zealand, it's a bit different. 

Te Herenga Waka Victoria University of Wellington professor of taxation Dr Lisa Marriott told Newshub there are no blatant disadvantages tax-wise to being single in Aotearoa. 

There aren’t any deliberate tax concessions for married people in New Zealand that I can think of.

"We don’t have inheritance taxes or comprehensive capital gains taxes. We also don’t have a Marriage Allowance like they do in the United Kingdom."

She said the advantages one of the only advantages would be for self-employed couples who could split their overall income to pay less tax. But she noted both partners would have to actually be contributing to do that. 

"One advantage would be the ability for a couple to take advantage of a structure such as a partnership to stream income. 

"Any advantage there is if one person would otherwise be paying the top tax rate and the other wouldn’t – so splitting the income would generate a lower overall tax rate on any income.

"But, note that isn’t intended and would require an element of deceit if the partners had income allocated to them that did not reflect a contribution made to the partnership," she said. 

Even without tax disadvantages, there is no denying single New Zealanders are being asked to fork out more than those in couples. 

It's not all bad news for singles though, according to a professor of behavioural science childfree unmarried women are the happiest.
It's not all bad news for singles though, according to a professor of behavioural science childfree unmarried women are the happiest. Photo credit: Getty Images

A quick, non-scientific, poll of Newshub's newsroom revealed rent and household costs were the most notable expense for single people. But other areas mentioned were gifts and accommodation. While couples can split the cost of a hotel room, singles are left footing the entire bill. The same goes for gifts, couples can share the expenses of buying presents while singles are left to manage it on their own.

Being single is not only more expensive but it's increasingly common. The latest Census data shows more than 405,000 people live alone. 

In fact, people living alone was the second-most common household type behind two-person households - at 519,561.

It's higher than three-people households, at 258,909, and four people, at 238,719.

But it's not all bad news for singles - well single women that is. In 2019, Paul Dolan, a professor of behavioural science, claimed the healthiest and happiest population subgroup was women who never married or had children.