A quarter of couples never discuss retirement income plans

Two thirds (67%) of couples have no idea what their combined retirement income will be and a fifth have never even disclosed their exact income.

This is despite nearly half (46%) of couples fearing they will run out of money in retirement.

20% are concerned about not being able to help their children or grandchildren when retired, and one in seven (15%) are worried about paying too much tax in retirement. Conversely, a confident 28% of couple’s have no concerns when it comes to retirement planning as a couple.

Despite the majority having some concerns around retirement planning, nearly three quarters (73%) of couples have not taken advantage of pension rules.

Worryingly, 9% of women admit they will rely entirely on their parents or spouse’s retirement income, compared to just 2% of men. A further 10% state they have no retirement savings as a couple and will have to rely solely on the State for income.

However, 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.

Stan Russell, retirement expert at Prudential, commented: “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, not using their full allowances in retirement may also end up with unrealistic expectations of what their savings combined are worth.

“For couples who have never had conversations regarding their personal finances, it is best to seek advice from a professional financial adviser who should be able to inform them of the best way they can maximise their savings and use new pension rules if appropriate.”