New research from ICMIF member LV= (UK) found that nearly half of UK adults (47%) say responsibility for long-term financial decisions is shared equally with their partner.
LV= says its Wealth and Wellbeing Research Programme allows the mutual insurer/pensions provider a unique view of the UK’s financial and emotional health. This helps LV= understand the hopes and concerns of the nation, allowing it to better serve members and communities. This latest research highlights the need to be more prepared for funding retirement, consider the impact of a major health risk and how short-term decisions could affect future plans.
The study found that women are more likely than men to say decisions are balanced (53% vs 41%). Meanwhile, among those earning GBP 100,000 or more, almost half (47%) say they personally carry most of the financial responsibility, compared with a third (33%) of people earning between GBP 25,000 and GBP 99,000.
According to the study, adults without children are more than twice as likely to keep their finances separate, compared to parents with children under 18 (22% vs 9%).
In terms of pensions, the research found that nearly one in five people (18%) expect to rely on their partner’s pension in retirement and fewer than one in ten (6%) say their partner mostly manages their shared finances.
A leading UK life and pensions mutual insurer, LV= warns that these mismatches in responsibility and expectation could leave couples exposed later in life, particularly when it comes to retirement income, protecting against unexpected events, or coping if circumstances change.
Other key research findings include:
- 35% of all UK adults plan to rely solely on the state pension.
- 37% of those aged 45 to 60 say they’re not currently planning for retirement.
- 25% of those aged 45 to 60 are not currently thinking about their retirement income.
“Money is still one of the hardest topics for couples to talk about honestly, yet it’s one of the most important,” said Sarah Hills, LV= Wealth Expert. “While equality is a goal for many, income and family circumstances often shape outcomes. Planning together, and having a clear understanding of each other’s expectations, is essential for long-term financial wellbeing.
“Without tailored financial advice, some couples could face serious consequences, from insufficient retirement funds to unexpected liabilities. Professional guidance helps ensure decisions are informed, fair, and resilient to life’s changes.”
David Hynam, CEO, said: “”Many feel underprepared for retirement and unprotected in the event of the unexpected. We’ve created guides and articles on retirement, protection and investments to help people become better informed.”
Read the research here.
