Many years ago BT ran an ad campaign with the tagline: ‘It’s good to talk.’ Older readers may remember it.
BT’s mission was to get people to talk more, preferably on the phone. It was a laudable campaign although I’m not sure it had long term impact.
I was reminded of the slogan because of news from a major new study which suggest Britons struggle to talk to their families and partners about their pensions. I should add myself in this group because I know all too well how extraordinarily difficult it can be to discuss retirement plans with loved ones. It is though, essential, and sometimes you have to bite your lip and get on with it.
Of course, considering your retirement does mean considering your own mortality so I understand why people are reluctant to face up to retirement.
According to the survey of 4,000 individuals, by wealth platform Moneybox for its 'Psychology of Retirement' study, nearly half of people (48%) have never discussed retirement plans with their families and among those aged 55 and over, 44% have never spoken about their plans with a partner or spouse.
On the positive side we should welcome the fact that on the other hand many people have actually discussed their retirement plans with loved ones, as they should, but even so the problem is apparent. A lot of people are reluctant to talk pensions with loved ones.
This lack of discussion, I suspect, often leads to poor decisions or a ‘head in the sand’ approach to retirement. It’s where Financial Planning can unlock the deadlock but, of course, many cannot afford financial advice.
Moneybox found that just 11% have sought financial advice, not far from the figure of 9% the FCA found in terms of people who had never taken financial advice. So the problem is significant.
A massive education programme and a focus on those who refuse to engage with pensions is necessary and could be part of the Pensions Dashboard strategy or a wider campaign. Whatever the route ahead things need to change.
Those who refuse to discuses their pension plans with loved ones are most at risk of poor choices, or even worse no choices - just coasting to an inevitably impoverished pension.
The government should make it much clearer that the State Pension, which is only about half of the Living Wage, will never keep anyone warm and cosy in their retirement. Additional pension planning is essential for even a moderate retirement and discussing that with family and partners is the best way to plan for a better retirement.
As Moneybox says in its report, without some effort to change the landscape, pension planning will remain a taboo for millions who will suffer as a consequence.
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Kevin O’Donnell is editor of Financial Planning Today and a journalist with 40 years of experience in finance, business and daily news. This topical comment appears most weeks, usually on Fridays but occasionally other days. Email: