Couples to face debt concerns come retirement?

Couples over the age of 40 could find they face debt concerns when they reach retirement age because they have not adequately discussed their pension plans with one another, new research has indicated.

The study from Prudential found fewer than half (42 per cent) of those in a serious relationship and in this age bracket have talked about how much money they need to save for the future, despite having reached a critical age for retirement planning.

It was revealed those in this group have neither discussed with their partner how much cash they have already put aside, nor the amount they think they will need to live on once their working days come to an end.

Moreover, just 16 per cent of pairings claimed they have had a serious chat on the subject and agreed on a strategy for funding retirement.

The investigation also revealed 48 per cent of those questioned who said they have talked about the issue with their lover – including matters such as wills, when to retire and the types of pensions available – have not followed through with their plan of action as yet.

Only ten per cent of partnerships who had discussed the topic have seen a financial advisor as a result, the study found.

Vince Smith-Hughes, head of pensions development at Prudential, said: “Addressing retirement planning and talking to your partner about how you will fund your retirement is critical.”

A recent survey conducted by Aviva showed a number of retired parents are struggling financially because their adult children continue to expect monetary handouts.

By Joe White