Research Identifies the New Retirement Power Couple

When it comes to financial planning, like many things in life, two is better than one. Yet many couples find it difficult to communicate about their financial future. And without an effective long-term financial plan in place, many may approach retirement unprepared.

The Hartford and the MIT AgeLab set out to explore how couples approach their finances and communicate about long-term goals. The nationwide study of both retirees and pre-retirees identified four financial planning styles—and the habits of highly effective planning couples.

Four Distinct Financial Planning Styles

• "Drivers" (17%) and "Passengers" (19%): Drivers are the primary financial managers while passengers are either minimally involved or completely removed from financial matters.
• "Joined at the Hip" (53%): Both partners share financial management, choosing to make every financial decision and take every action together.
• "Divide and Conquer" (11%): Each partner takes the lead on some aspects of the household finances and plays a secondary role on other aspects.

Divide and Conquer: The New Retirement Planning Power Couple
Of the four financial planning styles, research shows that Divide and Conquer couples are usually better prepared financially. They are most likely to have a contingency plan to assure the financial security of the surviving spouse. They also stand out as super savers, many having set aside at least $750,000 for retirement, and those who are retired are enjoying retirement more than they expected.

"A shared financial management style is essential for couples today," said Maureen Mohyde, director of the Advance 50 Team at The Hartford. "However, the truly effective couples are those that practice a division of labor approach."

How to Become a Divide and Conquer Couple

• Communicate. Talking over your household finances and long-term financial plans will help ensure that there are no surprises.
• Make plans that provide for the security of the surviving spouse.
• Determine what you'll need to fund the retirement you dream of.
• Seek the assistance of a professional financial advisor. A financial professional can help coach you toward greater financial security in retirement.

Learn More
To learn more about the retirement research findings, couples' planning styles and key factors to consider, refer to the Couples Planning Research Report.

About the Survey

• Conducted by the MIT AgeLab and The Hartford between November and December 2007.
• The couples analysis included 837 people who indicated they were married or living with a partner.
• Respondents were pre-retirees and retirees between the ages of 45 and 74.

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"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries including the issuing company Hartford Life Insurance Company.