Hitched or Flying Solo: Who’s Better Off Financially?
September 21 2017 - 8:30AM
Business Wire
TD Ameritrade survey looks at the financial
realities of America’s single adults
The single life is appealing to a growing number of Americans,
but married couples may tend to have the edge when it comes to
money. They are more likely to own a home, save and invest more,
according to a new survey from TD Ameritrade.
With singles accounting for 45 percent of all U.S. adults, it’s
more important than ever for those choosing the single lifestyle to
empower themselves financially. TD Ameritrade’s Singles & Money
survey of 1,000 unmarried and 1,000 married adults (ages 37 and
older) reveals that less than one-third of single Americans (29
percent) rate themselves as very financially secure compared with
43 percent of married individuals.
Research shows that singles tend to have more
friends than married people, are more likely to volunteer
their time and are as healthy or healthier as their married peers.
When it comes to finances, however, the picture isn’t as rosy.
- Singles make an average of $8,800 less
in personal income than their married peers ($52,900 versus
$61,700)
- They’re much less likely to own a home
than married couples (58 percent versus 90 percent)
- Four in ten working singles spend their
entire paycheck each month with no money toward savings (versus 37
percent married)
“While an increasing number of Americans are finding that
remaining single can have its virtues, there is one key area making
the single life potentially more difficult – money,” said Lule
Demmissie, managing director of retirement and long-term investing
at TD Ameritrade. “Having a spouse to split the mortgage, household
expenses and insurance can make basic living costs more manageable.
On top of that, for couples who file jointly, marriage can help
reduce their tax burden. The logical conclusion is not that one
should simply marry to save money! The substantive insight is that
both married and single investors can learn best practices from one
another.”
Singles’ Financial HabitsNearly one-third (29 percent) of
singles cite “having complete control over the household finances”
as the biggest benefit to not being married. But, when it comes to
saving and investing, two heads may be better than one.
- Fewer singles believe they are very
knowledgeable about the stock market (16 percent of singles versus
26 percent of married individuals)
- Three in 10 unmarried Americans aren’t
saving for anything, compared to 17 percent married
- A quarter (27 percent) have emergency
funds, versus 39 percent married
- Don’t mess with their food or coffee;
in tough times, four in 10 singles would be unwilling to cut back
on eating out and about a quarter wouldn’t sacrifice coffee or
take-out
Retiring SoloThree in 10 (28 percent) singles classify
their retirement savings as “I’ll scrape by,” while nearly a
quarter (23 percent) identify as “super savers.”
- Forty-four percent are saving for
retirement, versus six in 10 (63 percent) married
- One-third (34 percent) of unmarried
Americans expect to be very secure in retirement, versus 52 percent
for married
- Almost half (46 percent) of singles are
worried about running out of money in retirement, versus 38 percent
for married
- More than one-third (36 percent) of
singles want to fully retire but believe they won’t be able to
afford it, versus 29 percent for married
“The good news is that singles can redefine the American dream
on their own terms by taking financially prudent steps such as
saving for retirement early, sharing expenses with a roommate or
family member and establishing an emergency fund. This can help
level the playing field with their married peers,” Demmissie
says.
Demmissie points out a few ideas to help get singles on the path
to financial security.
- Enlist a financial accountability
partner: Married Americans say the single biggest financial benefit
of being married is the moral support offered by their partner to
keep them on track/on budget. Find a friend or family member who
can fill this role.
- Knowledge is power: An educated
investor is a confident investor. Take advantage of free tools and
resources to learn investing and saving basics.
- Take a cue from the Golden Girls:
Roommates can provide companionship and help lessen the financial
burden whether you own a home or rent.
- Establish an emergency fund: The usual
rule of thumb is to build up three to six months of living
expenses, but it can vary based on individual circumstances.
- Save early for retirement: The sooner
you start, the longer your savings have to grow. Aim to max out
your 401(k) and when your budget allows, also contribute to an
IRA.
TD Ameritrade’s financial consultants want to help investors of
all ages and experience levels set and pursue financial goals that
fit their lives. They will take the time to listen and understand
what matters to you before you invest. Learn about the four steps
to goal planning at
https://www.tdameritrade.com/investment-guidance/setting-financial-goals.page.
About TD Ameritrade Holding CorporationMillions of
investors and independent registered investment advisors (RIAs)
have turned to TD Ameritrade’s (Nasdaq: AMTD)
technology, people and education to help make
investing and trading easier to understand and do. Online or over
the phone. In a branch or with an independent RIA. First-timer or
sophisticated trader. Our clients want to take control, and we help
them decide how - bringing Wall Street to Main
Street for more than 40 years. TD Ameritrade has time and
again been recognized as a leader in investment services.
Please visit TD Ameritrade’s newsroom or www.amtd.com for
more information, or read our stories at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
Survey conducted by Head Solutions GroupHead
Solutions Group (U.S.) Inc., is a leading market research partner
for Financial Services companies in North America. With
offices in New York, Toronto and Montreal, Head
delivers the deep customer insights that increase institutional
knowledge and propel business action. TD
Ameritrade and Head Solutions Group are separate and
unaffiliated firms and are not responsible for each other’s
services or policies.
About the 2017 Singles & Money SurveyA 20-minute
online survey was conducted with 2,019 American adults aged 37 and
older by Head Solutions Group, between August 11 and
August 14, 2017, on behalf of TD Ameritrade Holding
Corporation. The statistical margin of error for the total sample
of N=2,019 within the target group is +/- 2.19 percent. This means
that in 19 out of 20 cases, survey results will differ by no more
than 2.19 percentage points in either direction from what would
have been obtained by the opinions of all target group members
in the United States. Sample was drawn from major regions in
proportion to the U.S. Census.
Source: TD Ameritrade Holding Corporation
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version on businesswire.com: http://www.businesswire.com/news/home/20170921005143/en/
TD Ameritrade Holding CorporationFor Media:Becky Niiya,
402-574-6652Sr. Manager, Corporate
Communicationsrebecca.niiya@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Director, Investor
Relationsjeffrey.goeser@tdameritrade.com
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