Many older adults are putting off important discussions about their retirement, a new survey has found.
According to Standard Life, half of over-55s haven’t spoken with a loved one about what sort of lifestyle they want in retirement.
Meanwhile, a similar proportion admit they haven’t had talked about whether they’d be able to afford it or not.
But it’s not just retirement that older adults are reluctant to discuss.
Figures showed that more than four in ten over-55s don’t ever talk about other financial matters such as their bank accounts, where important documents are kept and what’s in their will.
Money not taboo with younger adults
Interestingly, though, younger adults don’t seem to feel the same sense of discomfort and are happy to be open about money.
Just 43% of 18 to 34-year-olds were found to have never discussed their lives in retirement, even though it’s further away for them.
At the same time, Standard Life noted that many young adults have embraced the loud budgeting trend that’s currently popular on social media, in which people openly discuss their financial goals and what they do and don’t want to spend money on.
Dean Butler of Standard Life said: “Older generations are a bit more reluctant to have these conversations than their younger counterparts.
“But irrespective of age, there are benefits to people opening up about money and their plans on how to save and spend it.”
Why you should have financial conversations
While talking about your finances can feel a bit awkward, addressing the subject has many different benefits…
Build trust and strengthen relationships
Being transparent about your finances clearly shows how much you love and trust your partner, and demonstrates that you’re willing to be vulnerable with them.
At the same time, you’re putting your relationship on firmer footing by taking away any assumptions and making sure you’re both on the same page.
Reduce stress
If you stay silent about financial worries, they can eat away at you every single day.
But if you share your burdens and work with your loved ones to solve a problem, you’ll find the weight on your shoulder gets much lighter.
Make sure your goals are aligned
Everybody has their own personal ambitions and priorities, so if you’re in a couple, it’s important to sit down and discuss what they want out of life.
By having that conversation, you can make sure you’re working towards compatible goals and making financial choices that suit you both.
Prepare for retirement
There are many questions about retirement that you can’t just ignore.
Do you both want to retire at the same time? What kind of lifestyle do you want to enjoy? Are you both saving enough for the future right now? Do you know where all your old pension pots are located?
If you have these conversations, you can put together a plan to make sure you’re both able to enjoy the long, happy and fulfilling retirement that you want.
Be ready for the unexpected
Having financial discussions means you can be better prepared if you’re hit by an unexpected financial challenge, such as a job loss or serious illness.
It means that should the worst happen, everybody knows the plan, where important documents are located and, if necessary, who is empowered to make decisions on your behalf.
That can make a big difference when your family is going through a tough time, and makes sure a bad situation isn’t needlessly made worse.
Be accountable
If you have regular conversations about money, you’re more likely to behave in a responsible, disciplined way and make smarter choices.
Reduce conflict
Money is often the cause of an argument – and not just at home.
For example, how many of us had a friend complain when we say we can’t afford to go on a night out or expensive holiday?
Clear communication makes arguments about money much less likely to happen, and means the other person understands your circumstances and your choices.
Talking about money can be uncomfortable, and we understand that.
But the advantages of getting over this hurdle can be life-changing, so regardless of your age, don’t shy away from having these discussions.
Written by James Glynn
Senior Financial Content Writer
