Some 15% of Britons over the age of 40 and living with their partner choose to keep at least some of their savings hidden from their other halves.
New research from Prudential highlights that there are 4.5 million secret savers with a hidden pot of savings and investments totaling an average of £1,037 each. With many of these accounts left unmonitored day-to-day, thousands of consumers could be earning as little as 0.1% on their savings.
One in 10 of those choosing to keep their funds hidden do so because they don’t trust their other half’s financial decision making – while a further quarter (23%) admit that this is a security measure, in case they should split up.
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.
Couples need to discuss financial planning
Vince Smith-Hughes, head of business development at Prudential, said: ‘By harbouring secret stashes of money, many couples are failing to plan sufficiently for their joint retirement.
‘While it is understandable that some people in relationships want to be able to spend their own money, it is 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.’
Joint saving is the key
Paul Davies, analyst at Which?, added: ‘You’d hope that most couples would sit down to openly discuss their financial affairs together, so that all savings and investments could be included when they plan for a future happy retirement.
‘Whether individuals share the details with their partner or not, and it’s probably harder to keep a track of the performance of ‘secret’ monies, they need to make sure that they are getting the best rate on their savings. Regularly review all your savings accounts to ensure that you’re receiving a competitive interest rate.’
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