Almost half of couples are not sharing financial planning equally, according to new research from Quilter, highlighting an opportunity to encourage more joint financial conversations and improve long-term outcomes.
Almost half (46%) of couples do not share financial planning equally and instead manage aspects of their financial future independently, new research from Quilter has found.
While the majority of couples combine at least some of their finances, the study suggests many are doing so without a shared long-term financial plan.
Although 87% of couples who have been together for more than three years have partially or completely combined their finances, fewer than two in five (38%) have sought financial advice together.
The findings point to a growing trend of couples acting “financially single” despite sharing many other aspects of their lives.
In more than one in 10 relationships (11%), one partner is solely responsible for financial planning.
Among those who take a back seat, 57% said it was because they felt their partner understood finances better. At the same time, 14% said they would like to be more involved in their joint financial planning.
Quilter’s research also uncovered a gender gap in financial confidence. Women in long-term relationships were less likely than men to report a good understanding of their overall household finances (76% compared with 84%).
Meanwhile, 17% of women said they would not feel confident managing their finances independently if their relationship ended, compared with 6% of men.
Relationship therapist – Karen Doherty, said a lack of financial engagement between partners can create wider issues within a relationship.
“There are lots of reasons why someone might not feel comfortable joining in with financial planning in a relationship, but a lack of financial intimacy can create both an emotional divide and a power imbalance in a couple.”
She added: “A financial plan isn’t just about the numbers. It’s a shared picture of what you want your life to look like, and how you’re going to get there together.”
The research also suggests there can be drawbacks for the partner carrying most of the responsibility. Among those who handled most or all household financial planning, 16% described it as burdensome, while 17% wished their partner was more involved in financial decision-making.
The same proportion were concerned that their partner did not fully understand their shared financial position.
The findings highlight the value of encouraging both partners to participate in financial planning discussions wherever possible.
Megan Rimmer, chartered financial planner at Quilter, said: “Too many couples drift into managing money side by side rather than together, which can leave big decisions unspoken and one partner carrying more of the burden.”
She added: “Planning as a couple can also help make better use of allowances and reliefs and often leads to a more efficient overall approach than acting alone.”
The study found that conversations about money can lead to tangible financial action. More than a third (35%) of people in long-term relationships said they had taken financial action they would not have taken alone after speaking to their partner.
Of those, 46% said they invested more, 42% opened a new financial product and 35% sought financial advice.
A separate poll of advisers found that 57% believe joint planning leads to better or more ambitious financial decisions than either partner might have made alone, while 65% said couples are more financially confident when they plan together.
The findings may provide advisers with an opportunity to engage clients who are reluctant to discuss money with their partner.
Doherty suggests conversations are often easier when focused on shared life goals rather than financial products or figures.
Among her recommendations are encouraging couples to discuss what financial security means to them, exploring any concerns that may be preventing one partner from engaging with planning, and using a financial adviser as a neutral third party where conversations prove difficult.
As Rimmer noted, “For those who find these conversations difficult, speaking to a financial adviser can provide a neutral space to guide the discussion.” For advisers, helping clients move from managing money side by side to planning together could result in better-informed decisions, greater financial confidence and more resilient long-term outcomes.
Main image: Couple, money, priscilla-du-preez-9R8tERq66HU-unsplash
