By iSelect spokesperson, Jessie Petterd.
Being single can certainly come with its perks. Like the freedom to make decisions without consulting anyone, extra time to work on yourself and your hobbies and of course, drinking juice straight from the carton without judgement from anyone.
However, when it comes to finances, singles living alone (no matter what their financial position) unfortunately don’t have the same advantages of split-cost living that couples often do. In fact, new research by comparison service iSelect, suggests that single Aussies with no kids surveyed are paying an estimated additional $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]
What’s more, Aussie singles may be falling short when it comes to annual savings, with individuals in a couple able to save around $1,000 more per year on average than singles, according to the research.1 So, if you’re unattached, you might be thinking “how can I boost my financial situation and ease the strain on cost-of-living?” Don’t worry! We’ve made it easy for you with these four tips to save on common household bills and help reduce your ‘Singles Tax’.
- Review your plans/policies regularly – Your needs and circumstances are likely to change over time. When it comes to insurances (such as health, home and contents or car insurance), regularly ask yourself what you need to be covered for and if your current policy or plan stacks up. For example, if you’re single and not planning on starting a family anytime soon or perhaps your baby making days are behind you, make sure you’re not paying top dollar for things like obstetrics within your health insurance policy. It’s quite common for people to pay for things they don’t need or use, especially when it comes to health insurance.
- Shop around & don’t be scared to vote with your feet – Some people may think ‘loyalty’ is rewarded when it comes to insurance and utility providers, but that’s not always the case. In fact, providers often offer better prices to new customers than what’s available to existing customers. With so many plans and policies available on the market, it can be confusing to figure out what’s suitable for you. A comparison service like iSelect can help you compare a range of policies and try to find a more suitable deal for your needs and budget*.
- Consider opting for a higher excess – Some insurance companies may offer you lower premiums if you opt for a higher excess. For example, if you’re currently paying a $250 excess on your health insurance, bumping this up to a $750 excess could help you save money on your monthly premiums. Although, when increasing your excess, it’s important to consider whether you’re likely to be admitted into hospital in the near future as this option isn’t always suitable for everyone.
- Look for deals and incentives – Around certain times of the year, insurers (particularly health funds) may offer incentives such as cash back, weeks free, or waiving waiting periods and that could be a good prompt to shop around and take advantage of any deals and offers. But don’t get blinded by eGift cards and frequent flyer points in exchange for an unsuitable deal though! It’s important to consider incentives as a ‘nice to have’ on top of a great value policy.
Just because you’re flying solo or living alone doesn’t mean your finances should suffer. Although it can be mundane, reviewing your household plans and providers regularly can really make a quick difference to your back pocket and help empower your finances as a singleton!
Disclaimer
*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.
[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.
