Pension tension the last relationship taboo

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For immediate release: Tuesday 17 June 2014

With thousands of people across the country being automatically enrolled into workplace pensions you might expect the topic to be high on the agenda at home but, new research* from NOW: Pensions, reveals that over a third of those in a relationship (36%) have no idea how much their partner has saved for retirement. One in three (29%) admit that they have never even spoken to their other half about how they’ll fund their post-work years.

The research, conducted with 2,156 people in relationships, found that even as retirement draws near, many still avoid having the “pensions chat” or talking about money matters with their partner. In fact, nearly a quarter (23%) of over 55s have never discussed retirement finances with their other half.

Despite the lack of communication around this subject, over a quarter (27%) are concerned that their partner isn’t saving enough for their golden years. Those aged 35 – 44 are particularly worried about this as over a third (35%) say they don’t think their partner is putting enough aside.

What’s mine is yours?

At a time when women make up 47% of the UK workforce**, one in five (18%) still expect their partner to fund their retirement, though nearly a fifth (17%) admit they don’t actually know whether their partner will be able to do this. This compares with the 2% of men who expect to live off their partner’s pension pot.

While nearly half (48%) of those surveyed intend to support themselves entirely in retirement, many women take career breaks to have children which can see their retirement savings diminishing in the process.  It therefore doesn’t come as a surprise that two in five (42%) men expect to either partially or entirely fund their partner in retirement, though nearly one in five (19%) are concerned that the money they’ve saved won’t be enough for two.

The main reason men say they will be supporting their partner in retirement is because of career breaks for children diminishing retirement savings (51%), followed by their partner not earning enough to save for retirement (38%), and their partner having worked part-time (26%).

Conversely, just 10% of women say they will be either partially or entirely funding their partner in retirement with almost four in ten (38%) saying they are worried that they haven’t saved enough for two. The main reason women say they will be supporting their partner in retirement is that their partner hasn’t earned enough to save for retirement (41%).

Pension tension

One in five (22%) women admit that they would feel resentful if they had to fund their partner in retirement, saying their other half should have saved more in the first place. Men however, are a lot more at ease, with 62% saying they feel relaxed about funding their partner once they’ve left the workforce.

Morten Nilsson, CEO of NOW: Pensions said: “Crossing your fingers and hoping for the best is no way to go about planning your retirement finances. As a couple, regularly reviewing and openly discussing your pension plans will help to avoid a nasty shock.”

Michelle Cracknell, Chief Executive of The Pensions Advisory Service said:This research draws attention to some of the issues that we hear about on our helpline in respect of partners and their pensions.

“Married women often tell us that they had opted out of all pensions because their husband made all the provision. This may not be the best financial planning and, of course, creates a problem should the marriage break down.

“Another common query from women that we receive through our helpline is what happens on the death of the member. There is a low level of knowledge of the other benefits that a pension scheme provides and many widows struggle to trace their deceased husband’s pension scheme or know what needs to be done or what income to expect.”

“Our tip for couples is for both “to have and to hold” pensions and talk to each other!”

Tips from The Pensions Advisory Service

  • Keep a list of both of your pensions with your other personal papers
  • Check your death benefit both before and after retirement and the eligibility requirements
  • Keep your death benefit nomination form up to date
  • Send change of address cards to your previous employers
  • Check your State Pension entitlement especially with the move away from “Mr & Mrs” pensions to the new state pension (single tier pension – single in name and single in nature)
  • Sit down and write your retirement plans – there are new options and freedoms in respect of your pension but the starting plan is to work out what you want to achieve.

–     Ends     –

Notes to editors

*Research conducted by Censuswide online between 30 April 2014 and 6 May 2014 with 2,156 UK respondents in long term relationships/married/in civil partnerships.

**Rachael Mayanja, UN Special Adviser, Gender issues and the Advancement of women Groundbreakers, Ernst & Young, 2009

For further information:

Amy Mankelow
NOW: Pensions
Tel: 0203 640 9075 / 07941 105879
amy@nowpensions.com

Victoria Leyton / Valentina Kristensen
Lansons
Tel: +44 207 294 3620 / +44 207 5669720
nowpensions@lansons.com

NOW: Pensions www.nowpensions.com

@nowpensions

NOW: Pensions is an independent, multi-employer trust serving thousands of employers and hundreds of thousands of employees from a wide range of sectors.

A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions offers a simple and cost effective workplace pension solution direct to employers and via advisers and the payroll sector

In April 2013, NOW: Pensions became the first master trust to attain the NAPF’s new PQM Ready Standard. The benchmark shows employers that NOW: Pensions is a well governed pension scheme with low charges and good member communications.

The NOW: Pension Trustee Directors, whose role is to safeguard the interests of members, comprises well-known industry figures with different areas of expertise:

  • Jocelyn Blackwell, founding partner Dunnett Shaw
  • Christopher Daykin, former Government Actuary
  • John Monks, member of House of Lords and former General Secretary of ETUC and TUC
  • Win Robbins, former Head of European Fixed Income at Barclays Global Investors
  • Nigel Waterson, former Shadow Pensions Minister

Charges are just £1.50 per month administration charge (reduced administration charge of £0.30 – £1.00 to be applied during auto enrolment phasing for lower earners) plus a 0.3% annual product investment management charge, with no hidden charges.

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I am excited to be joining such a distinguished Board of Trustees, over-seeing a modern, transparent, cost efficient and high-performing pension fund. — Win Robbins, former Head of European Fixed Income Barclays Global Investors
...its simple design means the pressure is taken off us as the employer and avoids costly administration charges, whilst removing the burden of choice and ensuring the best possible retirement outcome for our employees. — Matthew Johnson, Head of Compensation and Benefits at Adecco Group UK & Ireland
…We pride ourselves on our abilities to make the perfect match for both clients and workers. Our decision to appoint NOW: Pensions came as a result of wanting a quality workplace pension scheme that is structured, simple and easy for us to… — Ian Naylor, Legal Director of Randstad
“Redington’s Investment Committee assigned an Approved Rating to the NPI DGF and positive on the fund.” — Redington
NOW: Pensions is supportive, easy for our employees to understand and uncomplicated in terms of its implementation. Its structured approach removes the complicated investment choices & makes auto-enrolment a straightforward and simple process. — Mark Manaton, Managing Director, Blue Arrow Group