One in seven couples never discuss their finances

| December 6, 2012
One in seven couples never discuss their finances

Insurance and financial services firm Prudential has found that 14 per cent of couples over the age of 40 never discuss their finances with their partner.

In a study carried out by Vision Critical for Prudential, 15 per cent of the 2,000 people surveyed said they feel uncomfortable discussing financial planning with their partners.

Many couples fear that talking about finances could end in an argument, and when discussions do take place, they tend to focus on short-term everyday expenses, rather than long-term issues such as pensions.

Sixty per cent of those surveyed said they discuss everyday living costs and 34 per cent discuss major investments such as home improvements and high-value items.

However, less than a quarter discuss savings and investments, only 16 per cent talk about retirement income and pensions and a mere 3 per cent discuss inheritance planning and tax.

Vince Smith-Hughes, retirement expert at Prudential, said: “Money can be a tough topic to discuss at the best of times.

“Many couples prefer to steer clear of conversations about finances, and especially discussions about longer-term issues like retirement which might feel light-years away.”

Sixty-six per cent of those surveyed said they had never discussed retirement or pension planning with a financial adviser.

Mr Smith-Hughes said: “A joint conversation with a financial adviser should help couples to make the right pension savings decisions during their working lives, so that they’ll have the right income to support their lifestyles in retirement.”

Meanwhile Prudential has entered into an agreement with Thailand based Thanachart Bank to acquire its Life Assurance Company.

The £368m deal will increase Prudential’s presence in the expanding Southeast Asian insurance market.

Following the completion of the deal, which is subject to regulatory approval, Thanachart Life will become a wholly-owned subsidiary of Prudential Thailand.

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