Couples: Talk about retirement plans, finances

The age-old problem of lack of communication between couples apparently extends all the way to retirement, and puts many wives at risk because they don't understand the family's retirement finances. Fidelity Investments took an interesting look at married couples' retirement readiness by quizzing both spouses about how well they agree on finances and retirement planning issues. Apparently, it isn't just a stereotype that it's hard to talk about the things that matter most. Fewer than half the couples (41%) said they make retirement investment decisions jointly. Only 8% of the wives said they are the primary retirement financial decision maker, compared with 37% of the husbands. When asked if they feel they could take over their retirement finances, only 35% of wives felt completely confident they could do it, versus 72% of their husbands. There isn't much agreement on the most basic issues either. One third of the couples didn't agree or didn't know where they will live when they retire and just under two-thirds (62%) agree on what age they will both retire. Half disagree on whether they will continue to work in retirement. Three-quarters don't agree on whether or not they have a detailed retirement income plan. It all shows that these are uncomfortable topics, even for couples that have been together a long time, according to Kathleen A. Murphy, president of personal investing at Fidelity. Her advice is that couples should sit down and talk to each other more. And the wives need to step it up. According to current lifespan estimates, it is a pretty good bet that a lot of those wives will end up managing their finances on their own.