Talk to your spouse about retirement planning

Do you talk to your husband or wife about retirement planning?

Despite the importance of securing an income in later life, many couples place their financial futures in jeopardy by failing to have these big conversations.

New research by Prudential has found that one in five couples over the age of 40 have never discussed their financial planning for retirement.

Nearly two thirds of couples in this age group have never met as a couple with a professional financial adviser to discuss their retirement income planning,

The findings formed part of Prudential’s annual survey of couples aged 40-plus on their  retirement aspirations and their attitudes to financial planning.

This results of the survey this year found that a reluctance to discuss finances in retirement is resulting in confusion about this later stage in life.

Nearly half of couples have no idea about the level of retirement income they can expect when they stop working.

27% of those surveyed do not know how much money their significant other has in pension savings.

Another important finding in the research highlighted the risk many couples face of leaving one partner in severe financial difficulties should their husband or wife die unexpectedly.

One two in five couples have made financial arrangements for one partner to continue to receive an income in retirement should the other die.

A further 15% said that one partner has made a will but no further arrangements regarding a continuing income.

12% of those surveyed have never discussed leaving an income in retirement for each other.

Women are most at risk of being left without an income with nearly one in five relying on their spouse or the State Pension in retirement.

This is compared with just 8% of men.

Only a third of respondents said their retirement income will continue to be paid to their partner if they die.

Despite the pension freedom reforms introduced in April this year making it easier for savers to pass on their pension pot to nominated individuals after death, two thirds of couples have never discussed their finances with their wider family.

Do you talk to your spouse about retirement planning?

Here at Informed Choice we believe these conversations are important. We are always happy to host discussions between partners about their financial future.