L&G Study finds couples are waiting an average of nearly five years before managing finances together
- One in five (18%) couples argue often about money,
- 17% avoid the topic altogether, highlighting the strain money matters put on relationships.
- More than a quarter of couples (26%) are in a ‘financial situationship.’ They keep their finances completely separate. This is despite being in long-term relationships.
- Couples wait an average of nearly five years before they ‘go official’ with managing their finances together. This shows how long many delay tackling money matters together.
Bola Sol, Financial Adviser, and Author of ‘Your Money Life’, shares her tips for couples managing money
While the majority of couples (86%) believe they have a healthy approach to discussing money. New research from L&G reveals that for many, this confidence doesn’t extend to long-term planning. One in five (18%) admit to arguing often about finances, while 17% avoid the topic altogether,
This avoidance has led to a growing trend L&G has dubbed the ‘financial situationship’. It describes long-term partners who share their lives. However, they keep their finances completely separate. It affects more than a quarter of people in relationships (26%). That’s a staggering 8.7 million people across the UK who are essentially guessing their partner’s financial habits and future plans.
L&G surveyed 3,000 UK adults in a relationship, found that this financial separation isn’t a short-term phase. On average, couples wait nearly five years before they ‘go official’ and begin managing their finances together.
To help couples navigate this and start these important conversations, L&G has launched a quiz. It will help you discover your financial love language and gain a deeper understanding of your financial style.
Love is blind when it comes to long-term finances
While most people have a good grasp of their partner’s salary (78%), they understand monthly bills well (75%). However, the picture gets blurry when looking toward the future. The research shows that love is truly blind when it comes to long-term savings and debt. Over a third of people (36%) have no clear understanding of their partner’s pension savings. A quarter are in the dark about their partner’s investments (25%). Another quarter does not understand their partner’s unsecured debts (24%).
Retirement planning appears to be the biggest blind spot. Nearly one in five couples (18%) have never discussed it at all. A further 10% are planning for retirement on their own. They are not talking about how they might combine their finances in their later years.
Paula Llewellyn, CEO, DC & Workplace Savings at L&G, comments: “Our research shows couples are often confident talking about short term finances but when it comes to long term planning, many are putting off the conversation. Although understandable given rising living costs and immediate financial pressures, avoiding those bigger discussions entirely can risk leaving people underprepared for the future they’re working towards.”
“Talking openly about money might feel awkward at first, but the aim is to build a habit around it,” Llewellyn continues. “Making [big decisions] together can reduce future stress and ultimately give both partners more freedom and confidence in what lies ahead.”
How to start the conversation
Financial Adviser and Author Bola Sol believes that talking about money is key to building a strong future as a team.
“Money is a tool we all have to use, and if couples don’t figure out how they’re aligned with their finances, it can cause real mismatches: from the house they’ll buy to how they’ll retire,” she says.
Bola shares her top tips for couples:
1. Pick the right time and place:
Don’t catch your partner off guard. If they’ve had a long day, suggest talking another time, but don’t put it off indefinitely.
2. Consistency is key:
Make chatting about money a regular habit, whether it’s monthly or every couple of months.
3. Think ‘one income’ for the long-term:
When planning a future together, reframe your mindset from ‘my money’ and ‘your money’ to ‘our money’. This helps you plan as a team.
To find out more, and take L&G’s Financial Situationships quiz to help you uncover your financial love language, please click here
