Yeah, so this is a problem, but also opens a door for 401k advisors to encourage participants to speak openly and honestly about their retirement plans and purpose.
More than four in ten couples disagree when asked about what age they plan to retire, and more than half differ on how much should be saved by the time they reach retirement to maintain their current lifestyle.
Alarmingly, nearly half said they have “no idea”—including 46 percent of Baby Boomers.
They’re the main findings from Fidelity Investments’ latest “Couples & Money” study, which also found that for couples who brought debt to the relationship, almost half (49 percent) contradict each other on whose responsibility it is to pay off that debt.
Other areas that raised matrimonial red flags include important account information: While a slight majority says they know their spouses’ passwords to bank, investment, credit card and social media accounts, roughly three in ten couples differ on whether they’ve actually provided this information to their significant other, suggesting there’s some confusion around matters of privacy.
In addition, one in five couples disagrees on where important financial and legal papers are located, with Millennials least likely to both know where everything can be found. Generally, women are far more likely than men to know their spouse’s passwords and have access to everything.
Paying for health care in retirement. This is a concern for 63 percent of Generation X and 51 percent of Boomers. Millennials are slightly less concerned, at 46 percent, which may be attributed to the fact that retirement is a long way away.
“Couples who plan together tell us they feel financially strong, regardless of their age or length of relationship,” Alexandra Taussig, senior vice president of lifetime client engagement at Fidelity, said in a statement. “Openly discussing financial matters helps people feel more confident, more closely aligned and better equipped to take on the future. Working together, couples can help each other build financial confidence in their ability to manage, should the day come they have to do it on their own.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
