Living together can hurt finances

LIVING together can seriously damage your financial health, according to a survey.

It found 45% of Ireland’s cohabiting couples would suffer grave financial problems if one partner was struck down by serious illness.

And as many as 25% of couples said they would be left in a financial black hole if one of them died unexpectedly.

Research published today by Hibernian Aviva Life & Pensions said cohabitation is potentially a one-way road to financial trouble and insecurity.

It shows 45% of those who live together rely on the income of both, and the majority said they would have serious financial problems if one fell seriously ill.

Hibernian said cohabiting couples now constitute 12% of the population, and the figure is increasing each year.

“There is a real need for cohabiting couples to safeguard their future,” the report said.

Couples under 35 would find it even more difficult to cope financially, faced with an unexpected illness or if one was disabled.

Up to half in the under 35 age category admitted to facing financial stress if one of them became seriously ill while a quarter said they would be hit with money troubles if one of them died suddenly.

“The research reveals a real need for Ireland’s cohabiting couples to safeguard their future and take out some insurance against the possibility of being struck down by illness or death,” said Gareth McQuillan of Hibernian Aviva.

The latest census figures showed the number of those living together has risen by 4% since 2002.

The & research also reveals cohabiting couples are not the only ones neglecting protection.

A staggering 72% of divorced or separated couples admit to not discussing the need to safeguard spouse and child maintenance payments in the event of death.