Does getting hitched improve your financial future?

Marriage imprioves financial future

Tax

Julie Hutchison

4th November 2013 at 5:08pm

Households in the UK are changing.

Recent figures from the ONS indicate that 29% of the 26.4 million households in the UK consist of one person. That’s a figure which has gradually increased over time.  And when it comes to the number of opposite sex cohabiting couple families, there’s been a significant increase from 2.2 million to 2.9 million, between 2003 and 2013.

The number of cohabiting couples increased from 2.2 million to 2.9 million, between 2003 and 2013.

Does marital status affect how people plan for their financial future?

Recent research from Standard Life paints a stark picture here. Amongst those with a pension, married people are much more likely (53%) to know what their income is likely to be when they retire, compared to those living with their partners (23%) or who are single (24%).

When it comes to knowing how much you’ve saved in your pension pot, 41% of those who had tied the knot knew the value of their combined pension pots, compared to 27% of cohabiting couples.

Does this mean saying “I do” brings more than just emotional happiness? The figures suggest it can also increase the attention people pay to planning their future finances too.

What sits behind this difference? Perhaps the whole experience of organising a wedding makes married couples more used to talking about and planning their future together?  Or do other factors explain the contrasting figures here?  What are your thoughts?

  • ONS statistical bulletin : Families and Households 2013, released 31 October 2013
  • Standard Life research sourced from YouGov Plc.  Total sample size was 2018 adults, of which 1361 have a pension. Fieldwork was undertaken between 9th – 12th August 2013.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)

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