Naz Financial

A Personal Financial Blog from Naz Miller

Confusion Over Income in Retirement: Are You Discussing It With Your Partner?

Income in retirement seems to be a taboo subject for some couples. At least, according to some research conducted earlier this year, for Prudential. The research was an online survey of 1,000 non-retired people aged over 40 that currently live with their spouses.

Discussed Income in Retirement with your Partner?

retirement income discussion - income in retirement - no discussion

Nearly a quarter (24%) of couples admit that they haven’t ever discussed income in retirement with each other. On top of that another 7% say that they have had such a discussion but haven’t discussed it again for over 10 years.

It’s not only future income they don’t discuss, either. One in six don’t know what their partner currently earns. And one in five admit to not sharing details of their earnings. Such a lack of communication could lead to some serious misunderstandings.

According to Prudential, 9% of women plan to use their spouse or parents’ retirement income and provisions to fund their own lifestyle. Without any discussion, this could come as a shock to their spouse; who may only have made provision to support their own living costs in later life.

Consequently, it all adds up to confusion over income in retirement.  According to the survey, a staggering 67% of couples don’t have any figure in mind for a joint annual income upon retirement.

What are Your Retirement Concerns?

top 10 income in retirement concerns

The survey also reveals what people’s main concerns are over retirement. Unsurprisingly, money comes top of the list. Nearly half (46 %) of couples fear they will run out of money in retirement. One in five are concerned about not being able to help their grandchildren.

Conversely, a confident 28% of respondents have no concerns about planning and their levels of income in retirement. And among those discussing retirement income, they estimate they’ll get an average combined income, including State Pension, of £31,301 p.a..

Talk to Each Other; Talk to Me

The lesson here is that conversations about finances are never easy. This is especially true if you’ve not even told your partner how much you earn. It’s extremely important to discuss your finances; you should know where you both stand so you can properly plan your income in retirement.

I have some tips about retirement planning, in an earlier blog.

Lastly, if you’re part of a couple who’ve never had those conversations , it’s best to seek advice from a professional financial adviser, like me. I’ll be able to inform you of the best way to maximise your savings and use new pension rules, if appropriate.

retirement income | take control of your retirement | income in retirement

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Naz Miller

I'm Naz and I'm a Financial Adviser. Prior to working in private practice, I spent 34 years working at Lloyds Bank in Cambridge and surrounding areas. My work has always focused on helping clients achieve their long-term financial objectives.

Glossary of Personal Financial Terms

AAA Rating

In short, AAA ratings (‘triple-A‘ ratings) are the highest credit rating available for an investment, such as a bond or company.

AAA ratings are issued to investment-grade debt that has a high level of creditworthiness with the strongest capacity to repay investors.

Similarly, the AA+ rating is issued by S&P (Standard and Poor) and is similar to the Aa1 rating issued by Moody’s. It comes with very low credit risk and indicates the issuer has a strong capacity to repay.