Aviva publishes ‘Real Retirement’ report
Aviva has today released its 'Real Retirement' report, giving the results of its research into the three phases of retirement. Since the beginning of 2010, Aviva has been monitoring the concerns and finances across three distinct ages of retirement - pre retiree (aged 55 to 64); retiring (65 to 74); and post retired (over 75).
This report explores the financial wisdom of the retired and asks how the experiences they have collected impact their overall outlook, as well as questioning what the true ingredients of a happy retirement are.
Aviva has found that the key to a happy retirement, irrespective of age, is good health. The second most important factor is having enough money to live comfortably.
Despite gains made in terms of income, Aviva found that shrinking savings pots and a continued upward trend in expenditure means that the finances of the over-55s remain stretched. Effective financial planning is therefore absolutely essential to ensure that retirement budgets are able to meet day-to-day costs.
The report clearly shows that people are aware that they need to personally save for retirement and would even advocate it for their “younger self”. The research shows that health and wealth are seen as the two critical factors for a happy retirement. With that level of motivation, the question is why are people not saving enough? Affordability may be one aspect but another reason why the motivation does not follow into action is lack of understanding.
Michelle Cracknell, Chief Executive at The Pensions Advisory Service said “We receive many calls where people are looking for independent information on their pension or to be signposted about who to talk to about existing pension benefits”.
“We are starting to receive calls from people who have been auto-enrolled into their company pension scheme and want more information about what it means for them. As reflected in this research, when it is explained to them, most people see it as a positive step and we can also sign post them to how they can research their prospective position at retirement that hopefully leads to action. Hence, we believe that the big win is to provide people with information to make them more confident to tackle their retirement savings.”
Read the full report here
It is important to start saving into a pension as soon as possible, and to save consistently, in order to give yourself the best chance of a comfortable retirement. Our booklet, 'Saving into a pension' explains the basics of pension saving in an easy to understand way. Click here to see our pensions publications.
Our website gives information about the different types of pensions. Click here to read more.