There’s a group amongst us who are often forgotten when it comes to financial talk.
They’re relying solely on themselves, with little information being tailored to their financial concerns – the much maligned single person.
The first thing a single will often mention (after telling you how many DVD box sets they’ve recently binge watched) is bearing the brunt of the tax burden.
As some tax breaks were being wound back in last week’s budget, it seemed for once the single fared ok because they had few tax breaks to give up in the first place!
They’re an easy demographic for politicians to ignore because of their apparent disposable income, but they also have to fund everything from that one income – even couples can share costs.
The single household is the fastest growing type of household in Australia and the ABS expects them to comprise a total of 28% of all households by 2031, which will be 3.2 million single households.
A single person’s financial security is solely reliant on their ability to generate income, save and invest; they have no partner to rely on in an emergency so they need to consider their risks.
The primary consideration for any single, especially one carrying financial obligations, is insurance.
Total and permanent disability, income protection and trauma insurance is key for singles because without partner support and the ability to generate an income, an unfortunate event could lead to financial pain and the loss of independence.
The next important consideration is the single’s need for an enduring power of attorney.
If a single is ever unable to make property and financial decisions, they will need a trusted person to act on their behalf.
Don’t make the mistake of assuming someone can automatically step in without an enduring power of attorney in place.
The enduring power of attorney takes care of the financial; however an enduring guardian needs to be in place to take care of any personal or medical decisions a single is unable to make.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543, www.mfg.com.au This information is general in nature and readers should seek professional advice specific to their circumstances. Think you need a lawyer for a superannuation claim? Think again!
