Couples are risking their financial futures by hiding savings, investments, debts and even income from one another, according to new research from Prudential.
The survey analysing attitudes to money and retirement planning among couples aged over 40 found that more than one in five (22%) people in a relationship put the couple’s comfortable retirement at risk by keeping debts, worth an average of £7,800, concealed from their other halves.
When asked how these hidden debts arose, just under half (48%) of respondents said that they had borrowed to cover every day living costs, while a third (34%) ran up debts through overspending due to an emotional event such as the break-up of a previous relationship. A further 16% had borrowed money to make payments to an ex-partner, for example for child support.
Additionally, one in four (26%) of those surveyed admitted to keeping a stash of money secret from their partner, with an average secret savings pot of £4,000.
The reasons given for not coming clean on finances with partners vary. For most, (51%) the main motive for keeping the extra income separate is to maintain independence – however a generous 29% do so to buy gifts for their other half. More than a fifth (22%) of the secret savers say they don’t trust their partners’ financial decision making, while 16% keep secret funds to protect themselves financially in case of a future separation or divorce.
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