"As providers, we must understand and embrace the changing needs of families, so that we can support every type of household."
- Paula Llewellyn, Chief Customer & Strategy Officer at L&G
Legal & General (L&G) has found that DINK (double income, no kids) and SINK (single income, no kids) families are rising in popularity with 4.1mn households in the UK making the decision not to have children. According to the Child Poverty Action Group, the cost of raising a child until the age of 18 has increased to £166k for a couple and £220k for a lone parent; DINK & SINK households have approximately £12k more expendable income to fund their lifestyle.
Of those surveyed (2,000), 83% of DINK and 81% of SINK households felt more comfortable making financial decisions. Child-free families were also more likely to have savings than families with children (73% & 69%).
However, child-free families were 74% less likely to be engaged with their finances, with most DINK (63%) and SINK (85%) households failing to keep track of their income or take precautions such as reviewing budgets which could leave them better off.
L&G believe that having children is often a trigger for making key financial decisions. Therefore, despite child-free households usually having products like pensions and saving accounts at the same rate as other families, they fall behind regarding protection. Notably, child-free house families are 60% less likely to invest in protection products.
The provider found the majority of adults deem products like Life Insurance as a means of ensuring support for their partner and children should the worst happen, hence 67% of DINK and 87% of SINK households haven’t purchased a Life Insurance policy. Over three quarters (76%) of DINK and four out of five (82%) of SINK households have never had Income Protection (IP), while 67% & 80% have never had Critical Illness Cover (CIC).
“We’re seeing a large number of people deciding not to have children. Societal pressures are lifting, and young people are choosing to create their own family structures. SINK and DINK households are feeling more financially secure and there’s a real opportunity for these groups to remain so right through to retirement,” explained Paula Llewellyn, Chief Customer & Strategy Officer at L&G.
“But there’s also a risk that the confidence that comes with having financial security, can result in poor financial engagement. As providers, we must understand and embrace the changing needs of families, so that we can support every type of household,” she added.
