Finances of the Report The Real Retirement

Summer 2012 typical modern

Over-55s income tracking - June 2012

family

What forms of support did your final employer provide when approaching retirement?

1,361
All

1,359
55 64s

1,390
65 74s

1,318
Over 75s

12%

9%

10%

Percentage of over-55s who survive on less than 500 per month

Workshops/Seminars on retirement finances

Benefit statements

Ability to reduce working hours or work flexi-time

9%

7%

9%

5%
12%
2010 Summer

11%
2011 Summer

10%
2012 Summer

Offer to extend my working life

Counselling / advice on how to adjust to retirement

Written literature on the financial issues surrounding retirement

A dedicated member of staff to talk to about these issues

Top monthly income sources for over 55s

Employer pension 39%

68%

of employees want employers to help them as they approach retirement

Investments/savings 27%

Employees top requests are:

Personal pension 34% Over-55s have typically been with their last employer for State pension 62% Wages/other earned income 32% Benefits inc. unemployment 17% Spouses pension 22%

35% 35% 21%

financial workshops retirement literature a list of recommended financial advisers

16 years

Typical savings pots of the over-55s - June 2012

Debt by type of formal borrowing

Hire Purchase Credit Cards Personal Loans

2,802 6,544

26,085 15,756 9,373

55-64 65-74

3,470 12,998

Storecards
All over 55s Over 75

Overdraft

Doorstep lenders

766

Debt of those with a mortgage 1,564 223,958 87,500

East

846

395,098 70,000
London

208,398 82,292
East Midlands

191,518 51,786
West Midlands

So what does this tell us?

1. Take the lead in securing advice With 64% of employers offering no additional or tailored support for employees approaching retirement, you cant just rely on your workplace for help planning your later life finances. 2. Consider part-tirement Some employers are happy to offer you assistance with planning your exit from work so consider whether you might want to work part-time or work beyond the traditional retirement age. 3. Look at the wider implications of stopping work While retiring will mean a drop in income for most people, there are other implications. Will you lose your private medical insurance and therefore do you need to take out a private policy? 4. What borrowing do you have? Entering retirement with significant debts, even if you have assets, is not ideal. Consider how you can use your assets to reduce your debts and therefore your monthly outgoings.

167,411 77,500
North East

178,779 47,794
North West

191,827 43,056
Scotland

316,827 78,040
South East

281,327 70,000
South West House Price

191,389 37,500
Wales Mortgage

165,402 45,833
Yorkshire

236,474 63,555
UK

In a rapidly changing world it makes sense to make the most of your retirement; to understand what you have, the options available and ensure you maximise your assets.

To find out how Aviva can help

visit www.aviva.co.uk/retirement

106000692 07/2012 Aviva plc