Couples Share Financial Trust, Lack Planning

People in committed relationships are likely to have similar values around financial goals, but are less likely to have put a retirement and estate plan in place, according to research released Wednesday by Ameriprise Financial.

In a survey of 1,510 couples with at least $100,000 in investable assets, 91% said they share the same financial values and 94% agree they are honest and transparent about financial matters. Digging into the details and planning, however, appears less common, with Ameriprise finding that:

• 52% of couples said they have not yet put an estate plan in place;
• 41% said they do not have a financial plan; and
• 39% said they have not figured out how to create a paycheck in retirement.

Mary Keckler

“There was a lot of strength in the positive findings that almost everybody we talked to said they trusted their spouse or partner on financial matters, and almost as many said they have shared retirement goals,” says Mary Keckler, senior vice president of financial advice strategy at Ameriprise. “But the lack of planning presents a lot of opportunity for advisers to be inspired on and act on.”

Keckler, who oversees Ameriprise’s financial planning and strategies across advisement and digital platforms, says the research showed that couples have “good intentions” when it comes to finances, but putting pen to paper on things like retirement income plans can feel “lofty and complicated.”

All Together

Since many people look to their workplace for financial resources, Keckler said it’s important for those offerings to include reference and guidance for couples whose financial lives are often intertwined. She noted that an estate plan may include a certain beneficiary setup, but if retirement and insurance plans don’t match the goals in that estate plan, it can create problems down the line.

“That’s an example of the importance of coordinating between an estate planning attorney and a financial adviser to really get the accounts aligned,” she says.

That coordination, she says, is increasingly important in a time when people hold much of their assets in a workplace retirement plan—and the options and resources within those offerings grow in complexity.

“The coordination across all of a retiree’s assets is one of the key things a financial adviser can do and help make the most of the plan at work and then understand what else beyond that plan at work might make sense for somebody,” she says. “The scenarios are getting more interesting to explore as more and more plans have a Roth option, or an after-tax option …. What is the smartest way both to save and withdraw? That’s such a rich space of possibility but also potential confusion for investors.”

When it comes to retirement, Ameriprise found that most retirees (87%) say they made the decision at the right time, and most retiree spouses (83%) agreed. The large majority of couples, however, do not retire at the same time, with 89% saying they had staggered retirement—with two-thirds retiring at least a year apart.

“We see a lot of differences in how people plan for retirement,” she says. “But it was interesting to me how relatively uncommon it was that people retire at the same time …. it’s different from expectations, so that is a lesson to learn for financial advisers, but also just for people in terms of how plans might change, and that’s okay.”

Not Always on Time

Keckler also noted that a large percentage of people retired due to external factors—whether a health condition, a layoff, or an offer of a retirement package. The research found that 32% of retirees said they did not feel completely in control of when they retired, and another 31% stepped away from an unexpected circumstance.

The head of financial strategy says these statistics provide a lesson for financial advisers in terms of helping people to “not just have one retirement plan, but a range of scenarios.”

Meanwhile, Keckler pointed out, that some couples who aren’t fully aligned with their finances: the research found that 14% of those surveyed admitted to having an account that they have kept secret from their partner; 51% of those said that balance is more than $10,000, while 24% have $50,000 or more squirrelled away.

“I really recommend that financial advisers engage both sides of the couple, even if one is more responsible for the financial part of that family’s life together, encouraging the other partner to be part of it,” she said. “It’s important to get both spouses or partners engaged will help with that connection of trust.”

Ameriprise’s Couples, Money & Retirement research was conducted by Artemis Strategy Group in January 2024; primary respondents were between ages 45-70 and within 10 years of retirement.