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Single-parent households face a higher possibility of living in poverty

Single-parent households face a higher possibility of living in poverty

When cost of living increases and only one income in the household

It’s not easy to be a single parent, whether the single parent is a male or female. The reason is a simple one, unavoidable costs such as housing, electricity, car and even food meant that one person has to pay for them all. Thus, once the single person deducts the single income for the few unavoidable costs, especially for property rental or even mortgage, the remaining amount may not be enough for the household to live above the poverty line.

In Malaysia, the poverty line (PLI) is set by the Department of Statistics (DOSM) based on minimum food and non-food needs, with the average national PLI for 2024 at RM2,705 per month. Source: dosm.gov.my

In Australia, there is no official poverty line but it is said to be 50 percent of the median income. In dollar figures, the poverty line works out to $584 a week for a single adult and $1,226 a week for a couple with 2 children. Source: unsw.edu.au

Let’s also read why single parent household are facing poverty risks in Australia.

Article in theguardian.com A major national survey has revealed a “silent crisis” among Australian families, with nearly one-in-three single-parent households living in poverty.

The newly released statistical report on the long-running Household, Income and Labour Dynamics in Australia survey found that, after adjusting for housing costs, 31.3% of single-parent families were living below the poverty line in 2023.

This group is nearly three times more likely to be in poverty than two-parent households, the survey showed.

“And it’s not just the single parents, it’s the children we are potentially entrenching in long-term disadvantage and which is having all sorts of social harms down the track.” Article in theguardian.com

What about Malaysians living in poverty?

Article in scoop.my World Bank senior economist for poverty and equity, Ririn Salwa Purnamasari, acknowledged Malaysia’s rapid progress over recent decades, noting that hardcore poverty has now been almost completely eliminated.

“Malaysia’s efforts in poverty and inequality reduction have been impressive. Hardcore poverty is now almost non-existent. The government’s target on eliminating hardcore poverty has essentially been met,” she was quoted saying by Bernama.

Ririn said the nation must now move beyond eradicating hardcore poverty and look towards improving the overall quality of development. She highlighted the need for stronger outcomes in education and health in order to sustain long-term inclusive growth. Article in scoop.my

This is why I always say everyone needs access to shelter

The only reason why Malaysia is able to move people out of poverty is also because property remains affordable. The choices may not be some perfect property but people continue to have access to them. If not apartment, then flats, if not flats, then kampung homes. When people continue to have access to shelter, then they can focus their limited income on other things instead.

If people are unable to afford renting a place or the financial capacity to buy a property, then the government must step in and provide affordable options. These affordable options, even if bare minimum would at least enable households who are living under poverty line to have a decent livelihood. This means the household members could meet basic needs (food, shelter, clothing) with dignity plus a secure, sustainable life.

If they do not need to struggle just to survive for another month, they could then start to work for a better tomorrow. Maybe earn more, save more and could even start investing too. This is the main reason why I say if one could, then one must secure access to a shelter so that they would not need to spend money to keep paying rental for generations to come.

Hope this explains. Hopefully more single-parent households could also find a good partner to help alleviate the financial strain in the household.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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