The Real Retirement Report

I have just got hold of a document by the life company Aviva which publishes research on both retirement and more importantly pre-retirement.

As such it examines the prospects for the finances and potential lifestyles of over-55s in the UK who by 2011 will it is estimated makeup 29% of the population.

What the report identifies is that many over 55s have significant financial concerns, and that those approaching retirement have more financial worries than those aged 65-74 or even over 75.  Amongst specific pensioner worries were the rising cost of living, unexpected expenses incurred and falling returns on savings.

Key findings include:

·          Pensioner poverty is a real issue – 21% of over 55s have a monthly income under £750

·          Pre-retirees have the lowest savings – 40% of 55-64s are saving nothing per month and 35% of this group have £2000 or less in savings

·          Outstanding debt – 20% of 55-64s still owe more than £75000 on their mortgage, but with 62% of over 55s owning their own homes outright and 80% being home-owners

·          Annuity confusion - 68% of over 55s don’t know what a joint annuity is and only 29% of married people take one out, leaving their partner with financial worries.  Annuities remain the most usual form of private provision for pension payments and savings portfolios.

This report will give plenty of cause for thought.  More than anything it highlights why those who have retired and more particularly those about to retire do need to sit down and think how they are going to live in retirement and take appropriate financial advice.  I accept that this may be problematic as it is not as easy to get independent financial advice given the lack of trust there is regarding some parts of the financial services industry.