Around 4.3 million Brits have savings and investments hidden from their partners and around 6.2 million have outstanding debts that they choose to keep secret, including hidden mortgages!
According to new research from Prudential, which examines attitudes to financial planning among co-habiting couples over 40, the average value of hidden outstanding debts is £9,546, whereas the average nest egg kept secret from other halves amounts to £2,004.
When those with hidden debts were asked how the debts arose, more than a third said they had borrowed money to cover every day living costs; a similar proportion had borrowed money to pay-off other outstanding debts, such as credit card bills.
Other reasons for having hidden debts included overspending due to an emotional event and debts inherited from past relationships, such as joint mortgages (5%).
Among those who admitted to having a secret nest egg, 22% said savings and investments were kept hidden to provide financial security in case of a break-up.
Other reasons included covering the cost of items they want to buy for themselves; saving for something specific like a car or dream holiday; not trusting their partner’s financial decision making.
Prudential retirement expert, Vince Smith-Hughes, comments: “Having conversations about finances may take some couples out of their comfort zones, but keeping money hidden from a partner could be a real barrier to long-term security.”
Category: Insurance News