Financial adviser warns about financial trouble brought by the household type
Newly released Census 2018 data has revealed that more and more Kiwis are now living alone, resulting in financial issues.
The data found that 405,000 people in New Zealand live alone – making it the second-most common household type in the country, just behind two-occupant households at 519,561.
Economist Shamubeel Eaqub believes the increase was due to the population ageing and people marrying and having children later in life – adding that the “typical Kiwi family” was changing, so it would not be long before living alone becomes the most common household type in the country.
However, living alone could bring financial trouble as the Census revealed an increase in median house price in the country from $370,000 in 2013 to $500,000 in 2018 while the median rent nationwide rose by almost $100 per week.
Read more: Stats NZ releases 2018 Census highlights
Liz Koh, a financial adviser, commented that it was given that the cost of living alone was more than that of sharing.
"It costs more to live alone because many living costs are fixed. That is, they are the same regardless of the number of people living in a house. This includes rent, mortgage payments, insurance, rates, home maintenance, internet and fixed charges for power,” Koh told Stuff.co.nz.
"The other consideration is that many people living alone are living on a pension and it is becoming increasingly difficult to live on a pension alone."
Tom Hartmann, managing editor of the Commission for Financial Capability, added that many people did not consider that financial risk of living alone – making insurance “that much more important” as the homeowner is expected to cover all expenses instead of being able to share them with another person.
