When it comes to financial decision making, it looks as though two heads really are better than one, according to analysis of the latest “HL Savings and Resilience Barometer”.
Once the numbers are crunched, it appears that over half of households (51%) where partners take big financial decisions together are on track for a “moderate retirement income”. This is significantly higher than both the overall average (42%) and for those households where key decisions are left to one person.
Moreover, almost one in five (18%) of households who take decisions together were on track for a better retirement than “moderate” and are classed as “comfortable”, compared to 15% of households overall.
The figures used for a “moderate” and “comfortable” retirement come from the Pensions and Lifetime Savings Association’s Retirement Income Standards. This research puts the cost of a moderate retirement income at £23,300 for a single retiree and £34,000 for a couple. A comfortable retirement income is estimated at £37,300 for one person and £54,500 for a two-person household.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, says: “Having an open and honest conversation with your partner enables you to have an overarching view of your finances and know which gaps need to be plugged. You can find out each person’s retirement expectations and make a plan that suits you both.
“When planning for retirement together it is hugely important not to neglect one partner’s pension planning at the expense of the other. One partner’s pension provision may be very generous and enough to keep you both in a good standard of living; but if you and your partner split up then one person – often the woman – can find themselves approaching retirement with little, if any, pension provision.
“Helping both partners to build up their pensions means both partners continue to benefit if they remain together while giving them a valuable income safeguard should they split up.”
And you can check out whether your financial plans are on track using the RetireEasy LifePlan, available here: www.retireeasy.co.uuk
