Aviva reports challenges ahead for over 55s
by Gill Montia
Story link: Aviva reports challenges ahead for over 55s
Aviva has outlined the challenges ahead for the over 55s in its first Aviva Real Retirement Report.
The new quarterly report reviews the finances of the three ages of retirement: pre-retirees (55-64); retiring (65-74) and long-term retired (Over 75).
The study reveals that Britons approaching retirement have finances in far worse shape than those either aged 65 to 74 or over 75.
According to the research, pre-retirees have the lowest savings (£8,593), lowest incidences of home ownership (76%) and largest average mortgages (£16,694).
Furthermore 40% of people in this group are saving nothing per month and 20% have over £75,000 outstanding on their mortgages.
Aviva also points out that there is a wide divergence between the richest and poorest in all age groups.
However, the number of people who have an income of less than £750 per month actually falls between the ages of 55 to 64 (23%) and 65 to 74 (19%) as the state pension kicks in.
For savings, the gap between the richest and poorest is at its largest for the pre-retirees.
The average amount of savings for this group is £57,002 but for a more typical saver the total amounts to a mere £8,593 because a small number of very rich people disguise the relative poverty of the rest.
Aviva Life’s at-retirement director, Clive Bolton, comments: “This first report shows a worrying picture whereby those who are already retired are actually – to a large extent – financially better off than the pre-retirees.”
He adds: “Although we would strongly advise people to start saving for their retirement as early as possible, we also need to ensure that those approaching retirement have access to the right information and support to maximise their income in their later years.”