Millions of Britons could be putting their finances at risk after splitting up from a partner, it has been suggested.
According to the Real Second Life report, compiled by Next Big Thing for Standard Life, over 8.5 million consumers may be placing the money saved into pension and saving schemes in danger as they break up from a significant other and begin a new relationship. The study showed that as the typical Briton is set back by some 20,000 pounds to ¡°start again¡±, pressures to manage their money successfully could deepen, which in turn may extend to struggles in paying back personal loans and other demands on their spending. In addition, research from the firm showed that 83 per cent of Britons believe that the financial consequences of ending a relationship and starting a ¡¯second life¡¯ is just as stressful as, if not more so than, the emotional implications.
Following the break-up of a live-in relationship, one in three of those between the ages of 35 and 65 do not have a pension, while a tenth of those who still have such an account have either given or received a portion of money from their nest-egg to their former partner. Meanwhile, more than half (58 per cent) of second lifers are revealed to have sold their property following the end of a relationship before splitting the proceeds. As a result, such consumers, after paying for any legal fees from the separation and servicing debts on areas such as secured loans, were intimated as using the money to start a new relationship.
Andrew Tully, marketing manager for Standard Life, said: ¡°When going through an emotional upheaval like divorce or separation, pensions are unlikely to be at the forefront of people¡¯s minds. But it is crucial to be aware that starting afresh can have serious implications on your financial future; either by having to forfeit part of your pension to an ex-partner, starting a retirement fund from scratch, or beginning a new relationship with new financial responsibilities.¡±
Mr Tully added that those considering embarking on a new relationship should take the time to consider the impact doing so may have on their finances in terms of saving for later life and meeting current financial commitments such as mortgages, personal loans and running a car. As a result, the manager advised consumers to seek out professional advice on how to best prepare their monetary situation as they get older. ¡°With changing lifestyles and people living longer, this message has never been more important,¡± he asserted.
And following the end of a relationship, people may wish to consider taking out a debt consolidation loan as a means of getting back on their financial feet, as they may find they have more disposable income at the end of every month by merging existing debts into a single repayment. Earlier this year, a spokesperson from Citizens Advice reported that life-changing events such as divorce or illness can impact upon their ability to manage money. However, the representative advised those considering applying for a loan to spend time making sure that they get the borrowing product which is most suitable for their needs.
Steve Smith writes for 1 Stop Finance Shop, a one stop, Personal Loans Shop, with information on bad credit loans and debt consolidation loans available on site.
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