- One in six people (16%) have savings they’re keeping a secret from their partner.
- 57% of people would be worried if they discovered their partner had secret savings.
- Most commonly people say they don’t have any particular reason for keeping it secret, they just haven’t mentioned it (43%).
- Two in five people say that they’re saving for emergencies (40%).
- A third say one reason for secret savings is just in case their relationship ends (32%).
- Quarter of people are saving for something they don’t want their partner to know about (23%), and a fifth keep savings secret because they don’t trust their partner with money (20%).
Figures from a survey of 2,000 people by Opinium for Hargreaves Lansdown:
Sarah Coles, head of personal finance, Hargreaves Lansdown:
“There are millions of secret savings accounts across the UK, a third of which have been squirrelled away just in case the relationship ends. More than half of people say they’d be alarmed to discover their partner had a secret account. Yet it can make a great deal of sense if savings are built fairly and for the right reasons.
Who has these accounts?
One in six people have secret savings. This is far more common among younger people, with more than one in four aged 18-34 holding a secret account (27%). This owes something to the fact that many have separate finances, and they’re also more at risk of a split in newer relationships. This is also likely to lie behind why those who are married are twice as likely to have secret savings as cohabiting couples (18% compared to 9%).
However, there’s an argument that older people and married couples could consider a secret emergency fund too. If something was to happen to their relationship, they may have bigger costs to cover – plus the risk there’s a divorce to factor in too. Only one in five (20%) of those aged 35-54 and one in 20 (5%) of those aged 55 and over have secret savings.
Higher earners are more likely to have secret savings: two in five (40%) higher rate taxpayers have them, compared to one in ten (11%) basic rate taxpayers. This may be because they have more cash available to free up for savings without it affecting the household. However, if money is tighter, you may well run into more difficulties in the event of a split, especially if you’re trying to set up home on your own again, so anything you can save could be vital.
Sensible reasons for secret savings
Having a secret account doesn’t necessarily hold any negative connotations. Most commonly, people don’t really have a specific reason for holding this money, they just think it might be a good idea. It’s likely to give them comfort that if life changes in ways they don’t expect, they have some protection.
Saving for emergencies is another familiar reason for these secret savings – given by two in five people. This is more common among men (43% compared to 37% of women). People may worry that sharing details of their emergency savings may put them under pressure to spend the money, or persuade their partner they need to take less financial care now they have a safety net. Having emergency savings is a great idea, and while it makes sense to plan this kind of thing as a couple, as long as you both work towards building a safety net, you don’t necessarily have to tell one another about every penny.
One in three are saving in case something goes wrong in the relationship. This can be eminently sensible, especially given that two in five marriages end in divorce. Even if you’re completely happy with your partner, you can’t ever know that they feel exactly the same way. If you’re unhappy, then having these savings gives you options. Women are more likely than men to be saving just in case the relationship ends (35% compared to 30%). It may reflect the fact that on average they’re more likely to earn less and have more caring responsibilities, which could mean more immediate financial problems in the event of a split.
The risks
Then we get into thornier territory, because a quarter of people are saving for something they don’t want their partner to know about. This is more likely among men (27% compared to 19% of women with secret savings). If this is a nice surprise, then there’s no harm in it. However, if you’re hiding savings, because you want to prioritise your needs without consultation, it could be more problematic. If you’re using it as a way to spend on thing you know would make your partner unhappy, it’s worth thinking twice about your plans. If it’s not something you’re prepared to talk about, should it be something you’re prepared to do?
Meanwhile, a fifth are doing it at least partly because they don’t trust their partner with money. There will often be one member of a couple who is more responsible with money than the other. They may have devised this as a solution to dig them out of a hole caused by the other, or because they have had issues with joint savings in the past. It may make sense for you as a couple, but it’s not a solution in itself, because if one of you is constantly bailing the other out, you’ll end up going round in circles financially. They may need support with their finances from an expert who can help with their particular problems, so it may be worth approaching charities or professionals for advice.
We asked people whether they’d be worried if they discovered their partner had a secret savings account. More than one in 20 (7%) said it wouldn’t bother them, because they have secret savings of their own, so it’s only fair. Another two in five (40%) said they wouldn’t be concerned because they have agreed to keep at least some of their finances separate.
However, more than half (57%) would be alarmed. More than one in five (22%) said they’d worry about what the money might be for, and a third (35%) said it would worry them on principle because they had agreed to tell one another about every aspect of their finances. It means before you put this money away, you need to consider the impact on your partner, and whether you really need to keep quiet about these savings.
If you have secret savings then there’s also the risk you haven’t really thought about the best home for it, so it may be in your current account, or an account attached to it, where it feels hidden. Unfortunately, your current account is likely to offer little or no interest, while branch-based high street accounts are currently offering less than a third of the rate of the best on the market. If you have savings, you need them to be working as hard as possible for you, so you should consider online banks and savings platforms, which tend to offer the best rates.
What should you do?
If you don’t really have any reason for keeping the savings secret, now may be the time for an honest conversation, so you can make plans together with full knowledge. If you’re saving for emergencies, you don’t have to declare every penny, but there’s nothing to stop you explaining you have a small fund to cover the worst-case scenarios.
The best solution will differ for each couple. In any case, there’s a fine line between sensible secret savings and something more worrying. Whatever you reason for putting this money aside, if you’re putting it away at the expense of your partner and leaving them struggling with the weight of responsibility for the finances, it can cause all kinds of problems for your joint finances. It means it’s worth thinking about what you’re saving for, how you’re doing it, and whether it’s a good idea.”
