Research from Prudential has revealed that almost one in five couples (or 19%) over the age of 40 have not discussed retirement plans in the last five years, whilst one in ten (11%) have never discussed it – despite retirement being one of the most important financial stages an individual will go through.
Furthermore, only one in ten have seen a financial adviser together to discuss retirement plans, meaning a lot of couples over 40 could have vastly mismatched ideas surrounding retirement and the amount of money they expect to live on.
A surprising number seem to be reluctant to share their finances as well, despite the fact they share a life together. In fact, 6% admit that they've never discussed finances and an additional 12% say they haven't talked about their money for over a year, while 25% keep current accounts completely separate and 30% have separate savings accounts too.
But, retirement decisions aren't so easily separated and should always be shared, unless they want to have issues later down the line. Not properly discussing annuities, for example, could mean they buy poorly and end up with a retirement income that's less than they were expecting, and if they purchased a single life policy without providing for the other partner the survivor could end up with no income at all.
Planning for retirement and purchasing annuities will be some of biggest financial commitments anyone will make, and although money is the third most likely topic to cause an argument (after family and household chores), failing to talk about it could lead to even bigger problems in the future.
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