Two thirds of couples aged over 40 don’t know how much money they will have together at retirement, new research reveals.
A fifth have not told partners what they currently earn, and nearly a quarter of couples admit they have never discussed how they plan to fund retirement, according to the survey from pension giant Prudential.
Running out of money is their biggest concern about retirement, with 46 per cent citing this as a worry, while 21 per cent are anxious about making mistakes in retirement planning. But 28 per cent said they have no concerns about their finances in old age.
Not talking: Nearly a quarter of couples admit they have never discussed how they plan to fund retirement
Some 20 per cent are worried about not being able to help their children or grandchildren out financially, and 15 per cent are bothered about paying too much in tax in retirement.
One in 10 couples revealed they had no private retirement savings and would have to rely solely on the state pension for income.
Some 9 per cent of women said they would rely entirely on their parents or their spouse’s retirement income, compared to 2 per cent of men.
Seven per cent of couples said they have had a conversation about retirement finances with their partner, but had not discussed it again for over 10 years – before the financial crash in 2008, when their situation might have looked very different.
Among those who did discuss retirement income, the average couple estimates they will receive a combined annual amount, including the state pension, of £31,301.
An earlier Prudential survey found that people retiring this year expect an annual income of £19,900, but this was based on individual not couples’ finances.
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Average expected retirement incomes – including money from state and private pensions, savings and investments – have now risen consistently since 2013 when they hit a low of £15,300.
Stan Russell, retirement expert at Prudential, said: ‘Conversations about finances are never easy, especially if you have not even told your partner how much you earn.
‘It is extremely important to discuss your finances, however, as it is essential to know where you both stand so you can plan for a comfortable retirement.
‘Couples who don’t talk, and make joint plans, risk losing out on making the most of the pension saving tax relief available between them. (See the box above).
‘Not using their full allowances in retirement may mean they also end up with unrealistic expectations of what their savings combined are worth.’
Prudential surveyed 1,000 UK adults aged 40-plus who currently live with their spouse or partner at the start of this year.
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