Many couples remain silent on retirement planning

The lack of long-term financial planning in households is highlighted by research that shows couples rarely talk about the subject.

Prudential found that just under a quarter of people it surveyed admitted they had never discussed retirement income plans with their partner or spouse.

Yet retirement income clearly weighs on minds with nearly half of couples (46%) saying their biggest concern for retirement planning is the fear of running out of money.

Many were also concerned about not being able to financially help their children or grandchildren and 15% also highlighted the worry of paying too much in tax in retirement.

Just how bleak the household gets around the topic of pensions is summed up by the expectation amongst some people that one pension will support both partners. One in 11 of women admitted they will rely entirely on their parents or spouse’s income in retirement, compared to 2% of men, and two-thirds of couples had no idea what their combined retirement income would be.

Of those who do discuss retirement income, the average couple estimates they will receive a combined annual amount, inclusive of State Pension, of £31,301.

Prudential surveyed 1,000 UK non-retired individuals aged 40 and over who live with a partner.

Stan Russell, retirement expert at Prudential, said couples who did not discuss retirement finance risked losing out on making the most of the pension-saving tax relief available between them.

©2018 funds europe

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