A spouse who does not bring in any money is often ignored by financial advisors and hybrid or robo-advisors, according to a study released Tuesday by Hearts and Wallets, a data and consulting firm focused on understanding investors’ decision-making processes.
The report found that contributions from the non-breadwinner spouse, as far as the financial security of the family and anticipated inheritances are concerned, often were marginalized when it came to planning for retirement. The study included 39 firms that provide human advisors, online advisors or hybrids providing financial advise to couples in the 53 to 64 age range.
Only 54 percent of the advisors included any retirement date recommendations for the non-breadwinner spouse, although retirement dates for the non-bread winner can be important for such things as deciding when to take Social Security.
Only 21 percent of the advisors addressed life insurance issues for the breadwinner, and just 10 percent analyzed what would happen when one spouse died, leaving the other behind. Slightly less than 49 percent of the plans anticipated inheritances the non-breadwinner might receive.
Financial services firms should be aware of the spouse’s growing influence, Hearts & Wallets says. More than three-quarters (78 percent) of couples turn to each other in discussions of financial topics.
“The ’invisible spouse or partner’ is often at major financial risk” when he or she is left out of planning, said Laura Varas, CEO and founder of Hearts & Wallets. “Firms that pay attention to the non-breadwinner spouse provide higher quality advice and guidance and open the door to a longer-term relationship.”