- One in five (21%) of Brits do not share how much they earn with anyone.
- Even those married or living as married, don’t share their salary with anyone (8%).
- Laura Newman, Head of NatWest’s Premier’s Specialist Client Advice and Investment Services, shares top tips on how to broach the subject of salaries and the benefits of openly discussing finances.
Discussing earnings is still a taboo subject with over a fifth of Brits (21%) admitting they don’t share how much they earn with anyone, new research from NatWest Premier reveals.
The study of over 2,000 respondents also found that when looking at those married or living as married, one in ten don’t share their salary with anyone (8%).
For salary sharing amongst the family, less than a third (31%) of parents with children in the household (under 18) share how much they earn.
The NatWest Premier research also shows that openly talking about earnings varies depending on annual take home, and some are still feeling uncomfortable to bring up the topic. When looking at those with a personal annual income over £100,000, 1 in 10 say they do not share their earnings with anyone. For those personally earning under £100,000, around 11% on average will discuss their earnings with friends, compared to 8% in the higher bracket.
NatWest Premier found that a staggering 80% of Brits surveyed disclosed they have never reached out to their bank or building society to discuss their financial goals. When looking specifically at those personally earning over £100k annually, still just over half (57%) admitted they have never reached out to their bank or building society to discuss their financial goals.
Laura Newman, Head of NatWest Premier Financial Planning, emphasised the benefits of discussing finances: “We’ve found that some people are still reluctant to disclose their earnings with those close to them – a lack of transparency around money, even in committed relationships, can often lead to issues later on.
“Money impacts so many aspects of our lives and shouldn’t be a taboo subject. Being open and upfront about money has benefits in a relationship as they can work together to reach their goals by accessing the right money support and products. Similarly, it’s an important discussion, no matter what your salary is. However, as finances and investments grow with salary increases, there are added complications and more opportunities to invest, so it’s more important that you work together – with your lifetime partner and banking partner – to plan finances.”
Breaking down the research further, NatWest Premier reveals that surprisingly, there is next to no difference when it comes to who is sharing their earnings information. 70% of men will share their earning details overall, and similarly, 69% of women. To add, younger generations are more comfortable with discussing their earnings. A quarter (25%) of 45-54 year olds do not share how much they earn with anyone, compared to 19% of 35-44 year olds, 17% of 25-34 year olds, and just 14% of 18-24 year olds.
As NatWest Premier’s Head of Specialist Client Advice and Investment Services, Newman also shares her top tips on how to broach the subject of salaries with your partner and the benefits of openly discussing finances:
- Understand the benefits of talking about salaries with your partner: While it can be scary to ‘open the books’ on your finances, it is important to discuss these things as openly as possible. Done at the right stage of your relationship there are huge benefits to sharing your salary with your partner – namely, that you can work together much more effectively to set and achieve financial goals. It ensures both are contributing fairly, no one is being stretched financially and that you are setting realistic goals for your future together. It will also mean you’re accessing the right support based on combined incomes. You cannot have a strong financial plan for your future together – whether that’s home buying, holidays or renovations – without this transparency
- Set your expectations and lay some groundwork first: It’s best to plan a time in advance to make sure your partner is not blindsided. We’d advise to chat when you know you’ll have enough time, and also to set your expectations. For example, you can lay the ground by saying – as we’re about to make a financial commitment to each other I think it’s important that we understand each other's financial situations (salary, debt levels and savings) can we set a time to talk about this together. This will allow time for you and your partner to gather the information you need and also to think about what you are and aren’t comfortable sharing
- Take baby steps, you don’t need to have all the conversations at once: our research found that salaries are still a taboo subject for many. So, while it’s hugely important to be transparent to allow for strong and considered financial planning, it’s important to keep in mind that some may be more comfortable than others. There’s no need to rush – ideally, you’d look to gain a greater understanding ahead of taking on legal financial commitments like shared current or credit cards as these financial commitments tie you together. For example, if you’re looking to move in together, or setting up joint payments, these are good opportunities and a relevant time to discuss financial goals based on personal incomes
- Remember they could be reluctant. Encourage them to speak to the bank first: it’s a personal choice that depends on the comfort level of both partners. Many can be unsure what financial information is relevant to financial decisions and planning, and that is where speaking to a bank for financial advice can be beneficial as an alternative. The key is to establish clear communication and mutual agreement on how financial information is shared. Having sought advice and support from a bank, your partner might well be more open to discussion
- It’s never too early to start planning: another important reason to discuss earnings is for long-term finance plans. When looking at salary sharing in the family, only 31% of parents with children in the household (under 18) share how much they earn. You can agree a plan for how and when to talk about finances with your children, and set them and yourselves up for the future.
Find out more about NatWest Premier here: https://www.natwest.com/premier-banking.html
Notes to editors
TECHNICAL NOTE:
On behalf of NatWest, Ipsos UK interviewed a representative quota sample of 2,237 UK adults aged 18 -75 between 13th and 18th September 2023.
A nationally representative quota sample of 2,237 adults aged 18-75 in the UK was achieved using an online omnibus approach. Quotas were set on age within gender, region and working status. An additional boost of 200 adults aged 18-75 in the UK with a personal income of £100,000 or more was also achieved with an online approach. The data has been weighted to the known offline population proportions for age and working status within gender, and for region, social grade, education and household income to reflect the adult target population of the UK.
Contact
Sarika Thanki, NatWest Premier – Sarika.thanki@natwest.com, 0778 921 4982
Abi Beaton, Stripe Communications – NWWealth@stripecommunications.com, 07707810658
