Is it time to take a cue from 'The Golden Girls'? More single older Americans feel the sting of housing costs than couples. Here are 3 ways to manage the extra expenses
Coupling up isn’t just good for your heart, but for your wallet as well – especially as you age.
Around 47% of adults who live alone experience additional housing cost burdens, which means they spend 30% or more of their income on housing, utilities and, if applicable, taxes and insurance, according to a new report by Harvard University’s Joint Center for Housing Studies (JCHS). This is significantly more than their coupled counterparts, only 21% of whom experience the same financial difficulties.
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This phenomenon is similar to what’s previously been labeled the “singles tax” — a reflection of the additional costs a single person pays for necessities compared to someone living with a partner.
But the extra costs of being uncoupled, especially as an older adult, aren’t limited to housing.
“As the baby boom population ages, and with it the number of people living alone, the share of older people with cost burdens may increase,” reads the JCHS report. “Housing costs are already unaffordable to many older households, and even more will struggle to shoulder the dual burden of housing and care.”
The problem with getting older is that your body ages, too. Without a partner to help with your care, you often have to pay for extra help, such as in-home care.
However, only 13% of people aged 75 and up who live alone “could afford assisted living without dipping into assets” in 97 metros across the U.S., according to the JCHS report, and only 14% could afford daily visits from a home health aide in addition to housing costs.
So how can older singles manage the price of aging without a partner to provide assistance or split costs with?
Downsize housing and transportation
If you’re a homeowner, one way to slash housing costs across the board while pocketing extra cash is by downsizing your living situation.
Moving into a smaller house or a condo could be a tidy way to cut down on the cost of utilities, home insurance and property taxes, while the profit can be used as an additional safety net or for investment purposes.
In addition, if you own multiple vehicles, you could cut down to just one to save on care and auto insurance costs, or if you have a high-priced vehicle, such as a sports car, you could possibly also save by downsizing your vehicle. If you’re able and want to go the extra mile, consider public transportation or simply walking as your primary means of transportation.
Read more: Worried about the economy? Here are the best shock-proof assets for your portfolio. (They’re all outside of the stock market.)
Move to a cheaper state
Many older adults move to new states for the sun and the fun, but older Americans may want to relocate to save money.
Mississippi, Oklahoma and Alabama all require annual incomes under $47,000 to live comfortably as a single, according to a recent GOBankingRates study. So, if your Social Security benefits or pension don’t quite rack up to $112,000 a year — the amount needed to live in Hawaii — consider moving to one of those cheaper states.
If you’re also worried about things like access to health care and public safety, Bankrate also recently released a study of the best states for retirees based on different categories.
Take a cue from ‘The Golden Girls’
If you don’t want to move, but struggle to afford staying where you are, you still can make life a little less expensive. All it takes is a little help from some friends.
Take a cue from “The Golden Girls” and move in with a friend or two (or three). This can effectively cut down on housing costs between each person and possibly other costs as well.
Living with roommates has become more common among Americans aged 65 and up. Around 913,000 of them live only with roommates who aren’t relatives – nearly double the amount since 2006, according to the JCHS report.
So why not rent with friends? It’s an opportunity to split both household and health-care costs, depending on the arrangement you have with your roommates.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
