Talking about retirement finances with family or loved ones is often a taboo topic for many over 55s
Even more than a quarter of over 55s confess they have not discussed their money situation in retirement with their spouses.
And while nearly two-thirds say leaving an inheritance is important to them, only just over a third have made the effort to write a will.
These means millions of over 55s are excluding their nearest and dearest from the details of their most important financial thinking, says research by pension provider Aviva.
The result is the over 55s are sometimes not making the right decisions for their families and loved ones from the options that are available.
Retirement expectations
The study reveals that the over 55s cagey about their finances. Although 64% have spoken about their retirement plans with their partners, only 20% have had the same conversation with their families.
Around half believe the issue is too personal and private to discuss with someone other than their partner. Worryingly, around 25% have not talked money with their families because they do not have a full picture of the income and spending.
The resulting problem, says Aviva, is that in the absence of financial advice many over 55s have failed to provide an income for their spouses or loved ones should they die.
Some (15%) considered they did not have enough money to provide for their family, but the financial firm says that if they had taken the right advice, their retirement outcome may have been different.
Many over 55s also have problems reconciling their retirement expectations with the reality of what they can actually afford.
Problems overlooked
Exotic holidays and hobbies are top of the list for two-thirds of new retirees. Many also think about moving home nearer to family and friends so they can spend more time with them.
Other important factors for retirees to consider, like how much money they need until they die and the costs of long-term care should they become frail and unable to look after themselves tend to arise when pensioners are in their late 60s or 70s, says Aviva.
Managingdirector Clive Bolton said: “Making choices about retirement is what the last Budget was all about and is a good thing for most people. However, sharing with family and loved ones can help with solutions and issues that you might not have thought about.
“Financial advisers can also help with making more income from the same money by coming at investment issues from a different way.”
