Finances of the typical modern familyThe Real Retirement Report Summer 2012
Workshops/Seminars on retirement finances
Benefit statements Ability to reduce working hours or work flexi-time
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
12% 9% 10%
9%7% 5%9%
What forms of support did your final employer provide when approaching retirement?
2010 Summer 2011 Summer 2012 Summer
All 55 – 64s 65 – 74s Over 75s
12% 11% 10%
Percentage of over-55s who survive on less than £500 per month
Over-55s income tracking - June 2012
£1,361 £1,359 £1,390 £1,318
£ £ £
State pension 62%
Employer pension 39%
Personal pension 34%
Wages/other earned income 32%
Investments/savings 27%
Spouse’s pension 22%Benefits inc. unemployment 17%
Top monthly income sources for over 55s
68%
16 years35% 35% 21%
of employees want employers to help them as they approach retirement
Over-55s have typically been with their last
employer for
financial workshops
Employees’ top requests are:
retirement literature a list of recommended financial advisers
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Typical savings pots of the over-55s - June 2012 Debt by type of formal borrowing
All over 55s 55-64 65-74 Over 75
£9,373
£26,085
£12,998£15,756
Debt of those with a mortgage
East
£223,958
£87,500
House Price Mortgage
Scotland
£191,827
£43,056
London
£395,098
£70,000
South East
£316,827
£78,040
East Midlands
£208,398
£82,292
South West
£281,327
£70,000
West Midlands
£191,518
£51,786
Wales
£191,389
£37,500
North East
£167,411
£77,500
Yorkshire
£165,402
£45,833
North West
£178,779
£47,794
UK
£236,474
£63,555
Credit Cards
£3,470
Personal Loans
£6,544
Hire Purchase
£2,802
Overdraft
£1,564
Doorstep lenders
£846
Storecards
£766
106000692 07/2012 © Aviva plc
1. Take the lead in securing advice – With 64% of employers offering no additional or tailored support
for employees approaching retirement, you can’t 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.
So what does this tell us?
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 helpvisit www.aviva.co.uk/retirement
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