Half of over 55s never talk to loved ones about retirement finances
Many people are approaching retirement without talking to anyone about the retirement lifestyle they want and whether they’re on track for it, according to new research from Standard Life, part of Phoenix Group.
Retirement might be one life’s biggest changes however half (50%) of those aged 55 and over have not discussed the sort of lifestyle they want with a partner or loved one, and another 53% have also not had a conversation about whether they are on track to afford it when they retire.
At the same time, 18–34-year-olds appear to be more open to talking about their lives in retirement on despite being far further away from it with just 43% having never discussed the topic.
Meanwhile, among the over 55’s, conversations with loved ones about key financial information is taboo with over 40% never discussing details of bank accounts, insurance documents, and wills, or how to find and access important documents.
This appears to be in sharp contrast to the “loud budgeting” trend popularised on social media this year and generally associated with younger generations, in which people display openness about what they do and don’t want to spend money on as well as their wider financial goals.
Across the UK, however, many people are not having financial conversations with partners or loved ones. A third (33%) have never discussed their household budget while 41% have never spoken about their short-term financial goals.
Dean Butler, Managing Director for Retail at Standard Life said “Talking about money and planning for the future isn’t always comfortable, but it is important. If you’re making decisions or putting plans in place that could impact a partner or loved one, try to have a discussion to ensure you’re on the same page and working towards the same goals with at least the people in your immediate household. It appears to be the case that older generations are a bit more reluctant to have these conversations than their younger counterparts, but irrespective of age there are benefits to people opening up about money and their plans on how to save and spend it.
“Having financial conversations can also strengthen relationships, as well as bring practical benefits. For example, speaking about money can help you budget with your loved ones, or it could help you understand each other’s wishes for the future, such as in the event of illness or incapacity. It’s also a good idea to share key financial information, like how to access important documents, with someone you trust in case they need to know for the future. It may feel difficult to begin a discussion about finances and your future, but it will help you plan for both the short and long term and understand whether you’re on track to meet your goals, or need to make any changes to help you reach them.”
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