Money News

Brits hide £4.6bn from their partners in secret savings stashes

Wednesday 16 November, 2011

By Martin Fagan

Secret savers have hidden stash of £1,037 in cash and investments because they don’t trust - or are planning to leave - their partners.

Fifteen per cent of Brits over the age of 40 and living with their partner choose to keep some - or all - of their savings hidden from their spouse or partner.

This is according to the latest research from Prudential, which examines couples' attitudes to financial planning.

The survey, conducted among savers over the age of 40 and living with a partner, found Brits admitted to concealing savings or investments worth an average of £1,037 from their spouse or partner.

Prudential says this could mean 4.5 million Brits are entering retirement with secret savings worth £4.6billion.

Women are more likely to keep their funds hidden from their partner, with 18% admitting to hiding savings averaging £1,002. This compares with 12% of men, who conceal an average fund of £1,072.

A quarter (23%) of those with a private stash of savings and investments admit this is a security measure, in case they should split up with their partner. One in 10 keeps secret funds because they do not trust their partner's financial decision making.

"By harbouring secret stashes of money, many couples are failing to plan sufficiently for their joint retirement,” said Vince Smith-Hughes, head of business development at Prudential.

“While it is understandable that some people in relationships want to be able to spend their own money, it’s also important for couples to have regular and open discussions about financial planning for the sake of maximising their retirement incomes. Only then can they decide how to make the best possible joint provision for the future.

"Consulting a financial adviser together is an important part of this on-going dialogue and can help couples to secure the income and lifestyle they expect in retirement."

Prudential's survey also found that nearly a fifth (17%) of Britons feel uncomfortable about discussing financial matters with their partner. While two-thirds (67%) of couples say they have not received professional financial advice together in the past five years, one in 10 people claim that either they or their partner has independently visited an adviser within the past five years.

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