What living alone means for your retirement planning

Half of those who live alone in the UK are over 65, according to new figures from the Office for National Statistics.

Living alone is often much more expensive relative to the cost of sharing with someone else, as housing, bills and services cost the same regardless - a phenomenon known as the 'solo penalty'.

This can make planning for retirement much harder, as you need to save significantly more.

This comes as new research from the Living Wage Foundation shows that only a quarter of those who are saving enough to avoid poverty in retirement live alone.

Here, we explain what you need to know about the cost of living alone in retirement and how to prepare your pension.

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Half of those who live alone are 65 or over

Around 8.6 million people lived alone in the UK in 2025, according to the most recent figures from the Office for National Statistics. And half (49.6%) of those people are aged 65 or over.

People aged 65 or over now make up a bigger proportion of those living alone than they did a decade ago – 49.6% in 2025, compared with 46.9% in 2015 – reflecting an ageing population in the UK.

And women are more likely than men to live alone in their later years: around three in five of those aged 65 or over and living alone were women.

• Find out more: ​healthy life expectancy in decline: how to protect your pension​​​

The cost of living alone in retirement

People who live alone in retirement face a much greater financial burden than couples. This is because many fixed costs are more or less the same if you live alone or share with someone.

This table shows how much single people and couples need to meet three retirement living standards developed by Pensions UK.

A retired couple needs around £43,000 a year to afford a ‘moderate’ standard of living – this covers daily living costs, as well as a fortnight’s holiday in Europe, a long break in the UK and money for activities, meals out and presents for loved ones.

But someone living alone needs £31,700 to achieve the same standard of living – over £10,000 more than each member of a couple would need to contribute if they split costs evenly.

And while a couple who were solely reliant on their full state pension would have enough to meet a minimum standard of living, someone living alone must rely on additional income: the full new state pension is currently worth £12,548 a year.

• Find out more: how does your state pension compare?

The solo pension penalty

Those who live alone in retirement face a much bigger challenge when saving for retirement. According to our calculations, you need to save more than twice as much as each member of a couple would in order to achieve the 'moderate' standard of living in retirement.

This table shows how much you need to save to meet the moderate and comfortable retirement living standards if you live alone or as a part of a couple. Our calculations assume that you receive the full state pension and access your pension via drawdown.

Of course, living alone doesn’t suddenly become more expensive when you retire – and the additional cost can make saving enough for retirement while working even more challenging. 

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How to manage the solo penalty in retirement

Whether you plan to live alone in retirement or want to be prepared for changing circumstances, these steps can help you manage the solo penalty in retirement.

1. Start saving as soon as you can

The sooner you can start saving, the longer your pension will have to benefit from investment growth. 

According to our calculations, if you started contributing to a workplace pension at 20, you would need to save £273 (including pension tax relief and employer contributions) a month in order to fund a moderate living standard in retirement – but this jumps up to £675 if you start saving at the age of 40.

2. Get all the support you’re entitled to

If you live alone, you'll likely face a bigger financial challenge when building up your retirement savings and it’s important to get all the support you're entitled to.

You'll usually receive pension tax relief at 20% on your contributions automatically. But if you’re a higher or additional-rate taxpayer, or an intermediate to top-rate taxpayer in Scotland, you may need to claim additional tax relief proactively.

If you have a personal pension or a workplace pension that operates under ‘relief at source’ arrangements, you’ll need to claim the additional tax relief from HMRC. Claims can be backdated for four years.

Once you're in your 60s, there is a range of age-related discounts and benefits you may be eligible for – make sure you don't miss out. 

• Find out more: how to boost your pension

3. Plan for changing circumstances

If you currently live with a partner, it’s important to consider how each of you will manage in retirement if you were to separate.

Pensions should be considered in divorce – but only 11% of divorcees with a pension yet to be drawn made an arrangement for pension sharing, according to the 2025 Fair Share study carried out by researchers at University of Bristol.

In a recent survey, only 6% of Which? members who live with a partner said they had contributed to a partner’s pension or vice versa. But paying into a non-working partner’s – for example, if they take time out of work to care for children – is an efficient way to help ensure everyone’s retirement finances stay on track.

• Find out more: pensions in divorce

4. Prepare for bereavement

It’s equally important to understand what will happen to your pensions when you and your partner die.

If you have a private pension, you can normally nominate a beneficiary who will inherit your pension. How the money will be passed on depends on the type of pension you have.  In our survey, 53% of Which? members who live with a partner said they have nominated them as a beneficiary.

Currently, unspent pensions fall outside of your estate for inheritance tax purposes, but from April 2027 they will no longer be exempt.

• Find out more: what happens to my pension when I die?