Thursday, September 2, 2010
Category:
Personal Finance Tips
According to new research from Prudential, UK couples could be ‘risking an old age in poverty’ due to a failure to discuss financial planning for their retirement.
During a survey conducted by Research Plus, 32 percent of couples aged 40 and over, but not yet retired, admitted to not knowing or understanding the details of their partner’s retirement savings. Furthermore, the survey uncovered that 22 percent have never talked to their partner about financial planning for retirement.
It was also found that women are less likely than men to discuss this area of finance, with 24 percent of women and 19 percent of men revealing that they have never discussed financial planning for retirement. In fact, a further 12 percent of women and 11 percent of men reportedly stated that they have no knowledge of their spouse or partner’s finances and no real interest in them.
Investments director at Prudential, Andy Brown, commented: "It is incredible that so many people do not know the details of their partner's retirement savings. Essentially, this could mean millions of UK adults are banking on hope as their core retirement strategy and are approaching what is arguably the most important financial decision without a full understanding of their household financial situation.
"It's astonishing that one in 10 men and women say they're not interested in their partner's retirement savings arrangements. Firstly, couples should strive to have open conversations with one another but they also should aim to be constructive and use these conversations to begin laying the foundations for their retirement planning. The reason this is so important is because the longer retirement planning goes unresolved the harder it is for couples later in life to try and get a decent financial retirement plan in place."
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Homeowners who would like to re-organise their finances, particularly any existing debts, could consider taking out a secured loan for debt
consolidation. One of many finance options available, this financial approach could leave borrowers with just one monthly repayment rather than struggling to manage several. What’s more, this single monthly repayment could even be lower than the sum of current outgoings – leaving borrowers with more money each month. This extra money could potentially be set aside in a savings account for future use if desired. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
