SlideShare a Scribd company logo
1 of 20
Download to read offline
The Aviva Real Retirement Report 
Autumn 2014 
Freedom and choice special edition
Contents 
Foreword 3 
Freedom and choice 4 
Having enough money through the 
retirement years 6 
Economic overview 8 
Income 10 
Expenditure 12 
RPI index 13 
Borrowing/debt 14 
Homeownership 16 
Savings/Assets 18 
So what does this tell us? 19
Clive Bolton, managing director, retirement solutions, Aviva 
In this Real Retirement Report special edition we look at over-55s’ attitudes to their finances in Q2 2014 and 
the degree to which they are concerned about running out of money in later life. It is an important question 
because over-55s will have increased flexibility from April 2015* in how they take their defined contribution 
pension savings. The opportunity of taking all of their money in one go could prove too tempting for many, 
but whether they will is yet to be seen. My view is that savers will largely continue to look for reliable and 
good value retirement solutions. 
In this report we look at people’s attitudes to the freedom and choice changes announced in this year’s 
Budget. It is interesting to consider what people actually think about the new freedom and choice options 
being offered from next year. The early signs are that there is still a lot of work to do to explain to people 
what that increased flexibility will offer them, and that the new options need careful consideration. Advice 
and guidance is likely to prove key in helping people make informed decisions. 
In the regular tracker section of this report we see the UK’s over-55s continuing to benefit from the improving 
economy. Income, spending and borrowing are all generally increasing over time, potentially encouraged by 
improving property prices of late. Spending on what we would normally consider luxury items, for instance, 
has increased suggesting that the over-55s feel they have more disposable income than recent times. It is 
interesting to see this pattern of increased consumer confidence emerge as the UK continues its recovery. 
It is possible that we are seeing the start of a return to the high spending and high borrowing economy 
that we saw prior to the recession. If this is the case then we should call for caution when it comes 
to retirement planning as there has never been a more important time to think carefully about how best 
to budget for retirement. 
The Aviva Real Retirement Report – Autumn 3 
Foreword 
* From April 2015, from age 55 years, people will be able to take their defined contribution pension savings 
how they wish, subject to their marginal rate of income tax in that year, and 25% of their pot will remain 
tax-free. These changes were announced in the 2014 Budget.
Freedom and choice – how the over-55s plan to respond to the 
Budget 2014 changes 
With the new flexibilities offered by the 2014 Budget just around the corner, there has been a huge focus on how over-55s will 
respond and concern about their potential to spend all their money too early. 
How over-55s feel about having earlier and more flexible access 
to their pension savings 
The Aviva Real Retirement Report – Autumn 4 
This speculation all presumes that those making their retirement decisions 
from April 2015 will be inclined to access their pension savings early 
rather than taking the more traditional guaranteed income offered 
through an annuity or looking to a long-term income drawdown plan, 
with some money still invested. 
Awareness about the Budget changes is high with 78% of over-55s (who 
are not yet retired) saying they know about the changes, and only 10% 
saying they do not. Interestingly, there is less awareness among a slightly 
younger cohort of 45-54** year olds with 70% awareness. Despite this 
level of awareness, more than half (55%) of over-55s who are not retired 
say the changes do not affect them, suggesting that advice and guidance 
needs to play a significant role in ensuring people thoroughly consider the 
new options open to them from April next year. 
More than half (54%) say the freedom and choice changes will not alter 
how they actually prepare for retirement, and 36% say they do not know 
whether they will. Only 10% say they will affect their plans. Even many 
of the younger cohort of 45-54 year olds, who will have more time to 
consider and prepare for the increased flexibility, say the changes will not 
affect their plans (36%) or they don’t know whether they will (54%). 
Only 7% of over-55s say they are worried about spending their pension 
savings too early and running out of money because of the new 
freedoms, although this is significantly higher in a younger 45-54 year old 
cohort at 16%. 
** For this freedom and choice spotlight we also asked a younger cohort of people aged 45-54 year olds, 
to track their emerging views on the Budget changes. All data using this age group is referenced. 
All other figures relate to the over-55s. 
55% 11% 
8% 
7% 
19% 
Does not affect me 
Peace of mind in being able to access 
money how and when they want 
More anxious about having enough money 
to last the whole of retirement. 
Confused over having more decisions 
to make about pension savings 
Worried about spending pensions savings 
too early and running out of money
Benefits of taking all their pension savings as a lump sum 
The Aviva Real Retirement Report – Autumn 5 
Perhaps one reason for the lack of concern over running out of money 
due to the freedom and choice changes is that half (49%) of over-55s who 
are not retired say they do not see any advantages to taking their pension 
savings as a lump sum, potentially allaying fears of people spending their 
money too soon. Whether this opinion will change over time is yet to be 
seen, and may well be affected by the economic landscape at the time. 
Of the 10% of over-55s who say their plans for taking their pension 
savings will change, the majority (59%) say they are more likely to take 
some or all of their pension savings as soon as they can, and 34% say 
they may take some of their pension savings as a lump sum to fund 
their retirement. 
49% 
19% 
12% 
23% 14% 8% 
Don’t see any advantages 
To supplement income in retirement 
Spending money before retirement or 
during retirement for personal interests 
Pay off the mortgage 
To supplement income while still working 
To pay off debts, such as credit cards 
Over-55s who are not retired say:
Having enough money through the retirement years 
With increasing confidence in the economy, the UK’s over-55s are experiencing one of the most buoyant economic periods 
in the history of this report. More money in their pockets, property prices rising and increased spending indicates a returning 
optimism to this part of the population. 
Despite an overall trend towards increasing confidence, many over-55s remain concerned about whether they will have enough money to live on in retirement. While 52% think they will have enough 
money in retirement, 17% think they will not have enough, and a further 27% will only go as far as saying they may have enough. 
Those people who do not feel they will have enough money in retirement put it down to: 
The Aviva Real Retirement Report – Autumn 6 
I didn’t earn enough 
to allow me to save 
adequately 
Difficult economic times 
have hindered the amount 
I can save 
I haven’t saved adequately 
in my life 
I have had many 
unexpected expenses 
for which I have had 
to use my savings 
I have spent a lot of my 
savings on helping support 
my family 
40% 35% 
20% 16% 
27% 
40 
35 
30 
25 
20 
15 
10 
5 
0
Things to cut back on and pr The possibility of running out of money eserve in retirement if money runs short 
in retirement becomes more likely when 
people have the option to take all of their 
pension savings how they wish – including 
in one cash instalment as they can from April 
next year. For today’s over-55s, running out of 
money is a possibility, but many are clear on 
what they are prepared to cut back on 
if necessary and what remains absolutely 
critical to their lifestyle, as can be seen from 
the accompanying graphics. 
Only 5% of people say a key worry is living 
longer than they expect and not having the 
money to fund their retirement. And 8% also 
say they are worried about running out of 
money in retirement because they have spent 
too much, too soon. 
This relatively low level of concern sits in stark 
contrast to what the over-55s feel are the more 
fundamental concerns about growing older: 
ill health (56%), conditions such as dementia 
(50%), being dependent on other people 
(36%), going into a care home (30%), 
and dying or people close to them passing 
away (25%). 
Things over-55s have/will cut back on if necessary 
45% 
36% 
40% 
Things over-55s are not prepared to give up 
44% 
41% 
The Aviva Real Retirement Report – Autumn 7 
24% 
14% 
Eating out/ 
evening 
entertainment 
Eating out/ 
evening 
entertainment 
48% 
Home 
Seeing friends 
and family 
36% 
31% 
Holidays and 
hobbies 
Holidays and 
hobbies 
7% 
Household 
upgrades 
Household 
upgrades 
On all things 
28% 
16% 
Gifts and treats 
for myself, 
friends and family 
Gifts and treats 
for myself, 
friends and family 
General living 
General living
2013 
2014 
The Aviva Real Retirement Report – Autumn 8 
Economic Overview 
2014 has seen unemployment levels return to pre-recession levels, with the economy growing at a healthier rate once again and 
signs all pointing to a more positive economic outlook. 
This improved economic trend is reflected in the views and behaviours of those aged over-55 years in Q2 2014 as they become financially more confident. However, there are signs to take heed 
of in the over-55s, particularly in how Ôborrowing’ rather than Ôsaving’ is beginning to be used to fund the lifestyles people want. 
UK economic confidence has never been higher with 43% of those aged over-55 feeling Ôvery/quite confident’ about the economy and 29% feeling Ônot very/not at all’ confident. Compared 
to recent years, the positive pattern is very clear amongst this segment of the population and has not been higher since the recession. 
Consumer confidence among the over-55s 
2010 
Q2 22% 
Q3 18% 
Q4 19% 
2011 
Q1 16% 
Q2 25% 
Q3 7% 
Q4 10% 
2012 
Q1 16% 
Q2 17% 
Q3 13% 
Q4 16% 
Q1 13% 
Q2 16% 
Q3 27% 
Q4 33% 
Q1 
Q2 
43% 
43% 
Consumer confidence - % of those that feel quite/very confident about the economy
There are a number of signs that the over-55s are beginning the move back to an economy built on borrowing and spending. One instance where this can be seen is in monthly ‘in-goings and 
out-goings’. As borrowing rates have started to rise, household expenditure is also increasing – especially amongst the more ‘luxury’ items, such as eating out and holidays. This is at a time when 
the average household shopping basket (measured in the RPI Index – page 13) continues to remain quite low, and thereby keeping disposable income relatively high. 
A point particularly relevant to the over-55s is how closely the improved economic outlook, which is starting to drive spend, is built purely on the housing bubble. The over-55s are most likely 
to own their own home (almost two-thirds of those aged over-55 do so) and so benefit from the recent house price trends. However, they are therefore also the section of the population most likely to 
be hit fastest and hardest if ‘the housing bubble’ bursts. 
Average house prices for the over-55s compared to consumer confidence 
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 
£221,778 13% £229,431 16% £231,267 27% £233,764 33% £240,641 43% £253,322 43% 
The Aviva Real Retirement Report – Autumn 9 
House price values for the over-55s Consumer Confidence
37% 
15% 
The Aviva Real Retirement Report – Autumn 10 
Income 
Income is continuing to remain slightly higher in 2014 than in previous years, with the middle income value (median) for over-55s 
being £1,346 a month compared to £1,212 in Q2 2013. 
With the economy improving, incomes do seem to be trending upwards slightly amongst this 
section of the population. 
Regional disparities persist with London seeing a typical income of £1,587 a month, closely 
followed by the South East at £1,473 and both around £200 more than almost any other region. 
Despite income in the over-55s increasing over time, we have seen that a significant proportion 
of this group do not feel confident about their ability to fund their retirement and adequately 
finance what they need to pay for. 
The link between a lack of financial confidence and income level is evident with a monthly income 
of about £1,800 seeming to be the marker at which an individual is more likely than not to feel 
comfortable about their financial situation. 
Comparison of monthly 
income amongst those 
who feel they have 
‘enough’ money for 
retirement, and those 
who do not 
16% 
13% 
4% 
2% 
Feel they have enough money in retirement Feel they might not have enough money in retirement 
22% 
8% 
5% 
Up to £100 
6% 
9% 
28% 
Between 
£101 - £250 
Between 
£251 - £500 
Between 
£501 - £750 
2% 
4% 
13% 
Between 
£751 - £1000 
Between 
£1001 - £1250 
Between 
£1251 - £2500 
Between 
£1251 - £2500 
1% 
£5000+
Sources of income in retirement 
The Aviva Real Retirement Report – Autumn 11 
Sources of income: 
As expected there is a clear split in how people source their income, 
depending on whether they are working or not. Those aged 55-64 years 
are far more likely to receive their income from their wage (56%), while 
more than 95% of those aged 65 years and over cite their state pension 
as the main source. 
The shifting propensity to spend is perhaps reflected too in the 
continuing rise of savings and investments as a source of income which 
is now seen to be a source by 30% of over-55s, the highest score seen 
since 2011. 
Personal 
pension 
State pension 
Employer 
pension 
Investments/ 
savings 
Annuity 
Rental income 
Spouse’s 
pension 
Money from 
family 
Wages/ 
other earned 
income 
Benefits inc. 
unemployment 
Other 
25% 
41% 
44% 
21% 
95% 
98% 
27% 
48% 
45% 
24% 
36% 
36% 
6% 
15% 
16% 
5% 
4% 
5% 
15% 
40% 
40% 
2% 
0% 
1% 
56% 
21% 
4% 
18% 
10% 
10% 
3% 
1% 
Ages 55-64 65-74 Over-75s 2%
Personal expenditure continues to climb amongst this demographic with a typical monthly expenditure of £846 (compared to £792 
in Q2 2013), which is also the highest seen since this tracker began. 
The monthly spend for the over-55s and proportion of total spend 
Clothing & footwear 
£32 4% 
Fares & other 
travel costs 
£30 4% 
Food 
£207 25% 
£77 9% Leisure goods such 
The Aviva Real Retirement Report – Autumn 12 
Expenditure 
Entertainment, 
recreation & holidays 
as sports equipment 
or CDs 
£9 1% 
Postage, 
telephone calls & 
internet connections 
£40 5% 
Fuel & Light 
£113 13% 
Housing 
(mortgage or rent) 
£108 13% 
Personal goods 
& services such as 
make-up & medicine 
£17 2% 
Furniture, appliances 
& pet care 
£19 2% 
Motoring 
£66 8% 
Eating out or 
takeaways 
£35 4% 
Cigarettes & tobacco 
£14 2% 
Debt repayment 
£43 5% 
Alcohol 
£34 4% 
The monthly spend for the over-55s is made up of a variety of core 
items but the main ones being food, fuel and (for those it applies to) 
their mortgage. 
The key areas where expenditure appears to be rising is in luxury items, 
which are those that were likely to come off the shopping list first when 
times were harder in recent years. 
For instance, holidays, clothing and eating out are all at their highest 
levels since the tracking began. 
£846 
Total monthly spend 
Over-55s shoppping bag - items that have seen an increase in spend 
spend and 
proportion of 
monthly basket 
Alcohol £34 4% Highest since tracking began 
Clothing and footwear £32 4% Highest since tracking began 
Eating out or takeaways £35 4% Highest since tracking began 
Entertainment, recreation and holidays £77 9% Second highest - second only to Q1 2014 
Fares and other travel costs £30 4% Highest since tracking began
2012 2013 2014 
Q1 Q1 Q1 Q1 
Q2 Q2 Q2 Q2 
The Aviva Real Retirement Report – Autumn 13 
Retail Prices Index (RPI) 
Interestingly, as spending has increased, the relative cost of a shopping basket, the RPI index, 
is still relatively low amongst this segment of the population at 2.4 (Q2 2014) compared 
to 3.9 in Q2 2013, and one of the lowest figures seen. 
RPI trends amongst the population aged over-55 
What does this mean? 
The price of goods is still comparatively low, relative incomes are quite high and, thanks to the 
improved economic outlook, people seem to be spending more on the enjoyable things in life. 
Fuel shortages? 
With the relative price of fuel actually falling a little this quarter the share of wallet it takes 
has dropped accordingly. Fuel is a key part of the monthly outgoings for this group of the 
population making up 10-15% of the bill. Recent reports of fuel hikes and speculation around 
gas prices continuing to rise disproportionately to costs don’t seem to be reflected in this 
survey. Indeed, gas prices actually seem to fall slightly and we see the same pattern here with 
fuel and light expenditure at £113, lower than it has been in Q4 2013 and Q1 2014. 
2011 
RPI - 5.1% RPI - 5.0% RPI - 3.8% RPI - 1.9% 
RPI - 5.6% RPI - 3.7% RPI - 3.9% RPI - 2.4% 
RPI - 5.8% RPI - 3.8% RPI - 3.7% 
Q3 Q3 Q3 
RPI - 7.0% RPI - 3.3% RPI - 1.8% 
Q4 Q4 Q4
£817 £765 
The Aviva Real Retirement Report Ð Autumn 14 
Borrowing/debt 
Few people in this segment of the population 
have extensive debts with the majority 
having paid off their mortgage and settling 
into retirement. 
However, amongst those that do, the three most prominent forms 
of debt are credit cards, personal loans and overdrafts. A typical person 
in this age group owes £817 on their credit card, £765 in personal loans 
and £104 on their overdraft. 
These are also the three areas to have seen the highest increase in debt 
owed this wave, all individually increasing on Q1 2014 and together 
forming one of the highest amounts of unsecured debt since this 
tracker began. 
Taking into account the slightly more unusual (and prone to monthly 
variance) forms of debt, for instance store cards, doorstop lenders and 
other informal borrowing, Q2 2014 stills sees exactly the same pattern 
as is seen in the three most prominent forms of borrowing (credit cards, 
personal loans and overdraft). Here the typical person aged over-55 
owes £2,269 Ð again one of the largest figures for total owed since the 
tracking began. This sort of value has not been seen since late 2011 
when people were most likely looking to pay off debts generated before 
the troubles of 2009. 
At a time when personal, luxury spending is showing record highs 
we also seeing forms of debt start to creep up too Ð even though the 
relative price of goods is still quite low. Could this be the first sign of the 
return of the Ôhigh borrowing Ð high spendingÕ economic model Britain 
flourished under for many years. 
The amount over-55s owe on the three key forms of unsecured debt 
Credit Card Personal loans 
£104 
£ 
Overdraft 
Q2 2014
The amount over-55s owe on the three key forms of unsecured debt 
NET £1,596 
NET £1,409 
£806 
£643 
NET NET 
£738 
£860 
£713 
The Aviva Real Retirement Report – Autumn 15 
NET NET 
NET 
Credit card 
Key 
Personal loans 
Overdraft 
£ 
2013 Q3 
£1,531 
£582 
£89 
Q4 
£1,536 
£668 
£155 
Q2 
£1,415 
£582 
£95 
Q1 
£148 
2011 
Q3 
£1,993 
£985 
£871 
£1,750 
£916 
£677 
£157 
Q4 
£2169 
£1033 
£833 
£303 
Q2 
£1,727 
£755 
£101 
Q1 
£221 
£787 
2012 
Q3 
£1,687 
£780 
£876 
£1,481 
£794 
£577 
£110 
Q4 
£1541 
£809 
£604 
£128 
Q2 
£1,560 
£567 
£117 
Q1 
£644 
£263 
2014 
Q2 
£777 
£541 
£1,687 
£817 
£765 
£104 
Q1 
£92 
NET 
NET 
NET NET 
NET NET 
NET NET
Property is by far the largest asset for this group with 61% owning their home outright and 20% owning it but with a mortgage. 
The average price of a house is £253,322, a figure that has never been higher amongst this age group. 
Regional disparities exist between incomes and amount the people tend to save but none are quite as profound as the variance in property prices seen across the UK. At £458,944, London is more than 
double almost any other region. 
A total of 12% of the population in this demographic own a second house too. With the average price of the second home at £223,253 this is another asset the over-55s have that continues to grow 
in price. 
Own their own home 
with a mortgage 
Average price of over-55s homes 
The Aviva Real Retirement Report –– Autumn 16 
Homeownership 
£253,322 
Own their 
own home 
61% 
20% 
Own a second 
house 
Average price of second house 
£223,253 
12%
The Aviva Real Retirement Report – Autumn 17 
A regional snap-shot of over-55s in the UK 
There are signs that the confidence in borrowing and spending 
in the over-55s could in part be fuelled by the buoyancy of the housing 
market. If this is the case, then the over-55s will potentially feel the 
brunt of any fluctuations in the housing market in the UK in the coming 
months and years. 
North 
East 
North 
West 
Scotland 
Wales 
Yorkshire 
and the 
Humber 
South 
West 
South 
East 
East of 
England 
London 
West 
Midlands 
Northern 
Ireland 
East 
Midlands 
£195,186 
£1,245 
£1,545 
£199,367 
£1,706 
£6,214 
£176,604 
£1,239 
£1,888 
Regional overview: 
Property Value 
Income 
Debt in £ covering 
credits cards, personal 
loans and overdraft 
* Note - Northern Ireland 
figures are based on a small 
sample size. 
£183,605 
£1,361 
£1,836 
£224,796 
£1,182 
£2,141 
£224,861 
£1,110 
£1,647 
£243,734 
£1,251 
£833 
£324,100 
£1,473 
£1,949 
£458,944 
£1,587 
1,034 
£208,795 
£1,346 
£1,833 
£206,453 
£1,275 
£1,515 
£274,114 
£1,445 
£1,671 
*
Q1 
Q1 
Q1 
The Aviva Real Retirement Report – Autumn 18 
Savings/Assets 
In our last report, in Spring 2014, we reported 
that Q1 2014 had seen some of the highest 
savings since this tracking began. 
While still high, Q2 has not quite followed the same trend with a typical 
over-55 year old owning £14,779 in savings and investments, compared 
to £11,894 in Q2 2013. 
This is typically higher among the elderly with the over-75s category 
owning £20,211, 65-74s owning £20,844 and 55-65s just £10,067. 
Average savings this quarter have fallen slightly with a typical person 
aged over-55 years putting away £46 each month. 
This represents a £2 drop since Q1 2014 where the typical amount saved 
was £48 per month. By historic standards this is still a very 
high amount saved, indeed second only to Q1 2014 when looking 
at the amount this group tends to put away each month. The correlation 
between income and savings looks to follow quite closely in recent 
waves as we can see in the following graphic. 
Typical monthly income and how much people save/invest each month 
2012 
2013 
2014 
£1,157 
£28 
£1,222 
£35 
£1,373 
£48 
£1,192 
Q2 
£20 
£1,212 
Q2 
£32 
£1,346 
Q2 
£46 
£1,373 
Q3 
£38 
£1,270 
Q3 
£36 
Monthly income 
Savings/investments made each month 
£1,242 
Q4 
£18 
£1,299 
Q4 
£40
2 Continue to save. Many over-55s continue to work either full-time or part-time 
The Aviva Real Retirement Report – Autumn 19 
So what does this tell us? 
The Autumn 2014 Real Retirement Report looks in detail at the finances of the over-55s and explores people’s views on running 
out of money, and how they feel the changes announced in the 2014 Budget will affect them. Aviva recommends consumers 
consider the following: 
Be conscious that the improving economy and property prices can 
fluctuate. If your spending and borrowing habits are partly fuelled by the 
recovering economy and the significant price increases in property – then 
exercise some caution. The economy and property prices can rise and fall, 
and it’s important to always spend within your means and stick to your budget. 
4 Have a realistic view of how much money you will need to last you for 
the remainder of your life. As you plan your retirement, be clear about 
how much money you will need in retirement, and how long you expect to live. 
Being realistic about your financial needs into your later years, and how they 
could change, will help you budget accordingly and not over-spend. 
1 
Get up to speed with the changes being introduced by the government 
that will give you far more freedom in how you take your retirement 
savings. The changes announced in the 2014 Budget will give the over-55s 
far more freedom in how they use their pension savings. It’s essential that you 
really understand what these changes mean for you, and how they could benefit 
you. The government pledged impartial guidance for everyone in a defined 
contribution pension scheme to help them make the decision that is best for 
them. Take this guidance and choose carefully so that you have money to last 
the whole of your retirement. 
and should, where possible, continue to put money away for the future. Maintaining 
a savings habit into retirement is as important as when you are younger. 5 
Take a balanced approach to your spending needs, particularly as the 
economy recovers. Having enough money to last the whole of your retirement 
is essential, so be clear about what you can afford to spend now, regardless 
of how good the economy is looking. 
3
Methodology 
The Real Retirement Report is designed and produced by Aviva in consultation with ICM Research. 
The Real Retirement tracking survey referenced throughout this report has been running since 
2010 and totals 19,193 interviews amongst the population over the age of 55 years. 
Some questions have only been running in a common manner since 2011 (so totalling 14,583 
interviews) and thus are only reported on for this period. 
1,202 people aged over 55 years were polled for this wave of research (Q2 2014) in July 2014. 
An additional 305 people aged over 45 years were interviewed and are only referenced where 
indicated in the report. 
Technical notes 
¥ A median is described as the numeric value separating the upper half of a sample, a population, 
or a probability distribution, from the lower half. Thus for this report, the median is the person 
who is the utter middle of a sample. 
¥ An average or mean is a single value that is meant to typify a list of values. This is derived by 
adding all the values on a list together and then dividing by the number of items on said list. 
This can be skewed by particularly high or low values. 
For further information on the report or for a comment, please contact Diane Mangan at the 
Aviva Press Office on 01904 684164 or diane.mangan@aviva.co.uk 
106027349 08/2014 © Aviva plc The Aviva Real Retirement Report – Autumn 20

More Related Content

What's hot

Understanding the 5 Key Retirement Risks
Understanding the 5 Key Retirement RisksUnderstanding the 5 Key Retirement Risks
Understanding the 5 Key Retirement RisksDouglas MacDonald
 
[ARCHIVE] Aviva Real Retirement report, March 2012
[ARCHIVE] Aviva Real Retirement report, March 2012[ARCHIVE] Aviva Real Retirement report, March 2012
[ARCHIVE] Aviva Real Retirement report, March 2012Aviva plc
 
2013 sun life_canadian_unretirement_index_report_en[1]
2013 sun life_canadian_unretirement_index_report_en[1]2013 sun life_canadian_unretirement_index_report_en[1]
2013 sun life_canadian_unretirement_index_report_en[1]gmeston
 
Policy Debate: Longevity, health and public policy. How should policy-makers ...
Policy Debate: Longevity, health and public policy. How should policy-makers ...Policy Debate: Longevity, health and public policy. How should policy-makers ...
Policy Debate: Longevity, health and public policy. How should policy-makers ...ILC- UK
 
Kfs retirement planning review
Kfs retirement planning reviewKfs retirement planning review
Kfs retirement planning reviewroowah1
 
Dewr presentation aug 07
Dewr presentation aug 07Dewr presentation aug 07
Dewr presentation aug 07saunderspeter
 
2 Biggest Retirement Misconceptions
2 Biggest Retirement Misconceptions2 Biggest Retirement Misconceptions
2 Biggest Retirement MisconceptionsDWilkins
 
13Mar14 - One Year On
13Mar14 - One Year On13Mar14 - One Year On
13Mar14 - One Year OnILC- UK
 
Investor pulse-brochure-va-us
Investor pulse-brochure-va-usInvestor pulse-brochure-va-us
Investor pulse-brochure-va-usBFSICM
 
Proper financial planning critical for women
Proper financial planning critical for womenProper financial planning critical for women
Proper financial planning critical for womenjolie111
 
Retirement Planning Guide by IBB Wealth
Retirement Planning Guide by IBB WealthRetirement Planning Guide by IBB Wealth
Retirement Planning Guide by IBB WealthIBB Law
 
Aegis financial planning smart money magazine
Aegis financial planning smart money magazineAegis financial planning smart money magazine
Aegis financial planning smart money magazineAkash Gupta
 
Retirement Savings Challenges for Women
Retirement Savings Challenges for WomenRetirement Savings Challenges for Women
Retirement Savings Challenges for WomenBobby Cherry
 
The changing face of ageing: From baby boom to baby bust
The changing face of ageing: From baby boom to baby bustThe changing face of ageing: From baby boom to baby bust
The changing face of ageing: From baby boom to baby bustILC- UK
 
FSC Future Leaders Award - Stephen Flegg
FSC Future Leaders Award - Stephen FleggFSC Future Leaders Award - Stephen Flegg
FSC Future Leaders Award - Stephen FleggSteve Flegg
 

What's hot (20)

Planning for your Retirement
Planning for your Retirement Planning for your Retirement
Planning for your Retirement
 
Understanding the 5 Key Retirement Risks
Understanding the 5 Key Retirement RisksUnderstanding the 5 Key Retirement Risks
Understanding the 5 Key Retirement Risks
 
[ARCHIVE] Aviva Real Retirement report, March 2012
[ARCHIVE] Aviva Real Retirement report, March 2012[ARCHIVE] Aviva Real Retirement report, March 2012
[ARCHIVE] Aviva Real Retirement report, March 2012
 
2013 sun life_canadian_unretirement_index_report_en[1]
2013 sun life_canadian_unretirement_index_report_en[1]2013 sun life_canadian_unretirement_index_report_en[1]
2013 sun life_canadian_unretirement_index_report_en[1]
 
Retire SMART (3)
Retire SMART (3)Retire SMART (3)
Retire SMART (3)
 
9 Facts About Retirement
9 Facts About Retirement9 Facts About Retirement
9 Facts About Retirement
 
Policy Debate: Longevity, health and public policy. How should policy-makers ...
Policy Debate: Longevity, health and public policy. How should policy-makers ...Policy Debate: Longevity, health and public policy. How should policy-makers ...
Policy Debate: Longevity, health and public policy. How should policy-makers ...
 
Kfs retirement planning review
Kfs retirement planning reviewKfs retirement planning review
Kfs retirement planning review
 
Dewr presentation aug 07
Dewr presentation aug 07Dewr presentation aug 07
Dewr presentation aug 07
 
2 Biggest Retirement Misconceptions
2 Biggest Retirement Misconceptions2 Biggest Retirement Misconceptions
2 Biggest Retirement Misconceptions
 
13Mar14 - One Year On
13Mar14 - One Year On13Mar14 - One Year On
13Mar14 - One Year On
 
Investor pulse-brochure-va-us
Investor pulse-brochure-va-usInvestor pulse-brochure-va-us
Investor pulse-brochure-va-us
 
Proper financial planning critical for women
Proper financial planning critical for womenProper financial planning critical for women
Proper financial planning critical for women
 
Retirement Planning
Retirement PlanningRetirement Planning
Retirement Planning
 
Retirement Planning Guide by IBB Wealth
Retirement Planning Guide by IBB WealthRetirement Planning Guide by IBB Wealth
Retirement Planning Guide by IBB Wealth
 
Aegis financial planning smart money magazine
Aegis financial planning smart money magazineAegis financial planning smart money magazine
Aegis financial planning smart money magazine
 
Retirement Savings Challenges for Women
Retirement Savings Challenges for WomenRetirement Savings Challenges for Women
Retirement Savings Challenges for Women
 
The changing face of ageing: From baby boom to baby bust
The changing face of ageing: From baby boom to baby bustThe changing face of ageing: From baby boom to baby bust
The changing face of ageing: From baby boom to baby bust
 
Social Security
Social SecuritySocial Security
Social Security
 
FSC Future Leaders Award - Stephen Flegg
FSC Future Leaders Award - Stephen FleggFSC Future Leaders Award - Stephen Flegg
FSC Future Leaders Award - Stephen Flegg
 

Viewers also liked

[ARCHIVE] Aviva Working Lives report
[ARCHIVE] Aviva Working Lives report[ARCHIVE] Aviva Working Lives report
[ARCHIVE] Aviva Working Lives reportAviva plc
 
Inspired Rewards - Power Point
Inspired Rewards - Power PointInspired Rewards - Power Point
Inspired Rewards - Power PointRachael Morse
 
UK Health & mental health
UK Health & mental healthUK Health & mental health
UK Health & mental healthAviva plc
 
UK tax implications on Employee Benefits factsheet
UK tax implications on Employee Benefits factsheetUK tax implications on Employee Benefits factsheet
UK tax implications on Employee Benefits factsheetSimplyhealthUK
 
Take Steps to Help Employees Achieve Financial Wellness
Take Steps to Help Employees Achieve Financial WellnessTake Steps to Help Employees Achieve Financial Wellness
Take Steps to Help Employees Achieve Financial WellnessHuman Resources & Payroll
 
Get Affordable Dental Treatment with MetLife Orthodontics Insurance
Get Affordable Dental Treatment with MetLife Orthodontics InsuranceGet Affordable Dental Treatment with MetLife Orthodontics Insurance
Get Affordable Dental Treatment with MetLife Orthodontics InsuranceMarina Jolie
 
metlife Investor Day 2008 Investments
metlife Investor Day 2008 Investmentsmetlife Investor Day 2008 Investments
metlife Investor Day 2008 Investmentsfinance5
 
2012 Global Employee Benefit Survey Executive Summary
2012 Global Employee Benefit Survey   Executive Summary2012 Global Employee Benefit Survey   Executive Summary
2012 Global Employee Benefit Survey Executive SummaryCliff Caldwell, GPHR
 
Investing to tackle climate risk
Investing to tackle climate riskInvesting to tackle climate risk
Investing to tackle climate riskAviva plc
 
metlife Investor Day 2008 International
metlife Investor Day 2008 Internationalmetlife Investor Day 2008 International
metlife Investor Day 2008 Internationalfinance5
 
My new life in Canada
My new life in CanadaMy new life in Canada
My new life in CanadaShijun Zhuang
 
Technology Futures In Life Insurance
Technology Futures In Life InsuranceTechnology Futures In Life Insurance
Technology Futures In Life InsuranceKeith Rackley
 
Middle class and Quality of life - Canada
Middle class and Quality of life - Canada Middle class and Quality of life - Canada
Middle class and Quality of life - Canada paul young cpa, cga
 
metlife Proxy Statement2007
metlife Proxy Statement2007metlife Proxy Statement2007
metlife Proxy Statement2007finance5
 
Aviva 2014 Results Presentation
Aviva 2014 Results Presentation Aviva 2014 Results Presentation
Aviva 2014 Results Presentation Aviva plc
 

Viewers also liked (18)

[ARCHIVE] Aviva Working Lives report
[ARCHIVE] Aviva Working Lives report[ARCHIVE] Aviva Working Lives report
[ARCHIVE] Aviva Working Lives report
 
Inspired Rewards - Power Point
Inspired Rewards - Power PointInspired Rewards - Power Point
Inspired Rewards - Power Point
 
UK Health & mental health
UK Health & mental healthUK Health & mental health
UK Health & mental health
 
UK tax implications on Employee Benefits factsheet
UK tax implications on Employee Benefits factsheetUK tax implications on Employee Benefits factsheet
UK tax implications on Employee Benefits factsheet
 
Take Steps to Help Employees Achieve Financial Wellness
Take Steps to Help Employees Achieve Financial WellnessTake Steps to Help Employees Achieve Financial Wellness
Take Steps to Help Employees Achieve Financial Wellness
 
Get Affordable Dental Treatment with MetLife Orthodontics Insurance
Get Affordable Dental Treatment with MetLife Orthodontics InsuranceGet Affordable Dental Treatment with MetLife Orthodontics Insurance
Get Affordable Dental Treatment with MetLife Orthodontics Insurance
 
metlife Investor Day 2008 Investments
metlife Investor Day 2008 Investmentsmetlife Investor Day 2008 Investments
metlife Investor Day 2008 Investments
 
2012 Global Employee Benefit Survey Executive Summary
2012 Global Employee Benefit Survey   Executive Summary2012 Global Employee Benefit Survey   Executive Summary
2012 Global Employee Benefit Survey Executive Summary
 
Investing to tackle climate risk
Investing to tackle climate riskInvesting to tackle climate risk
Investing to tackle climate risk
 
Majeski v MetLife Webinar Presentation
Majeski v MetLife Webinar PresentationMajeski v MetLife Webinar Presentation
Majeski v MetLife Webinar Presentation
 
ENERGY WORKSHOP_SG (BLAI)
ENERGY WORKSHOP_SG (BLAI)ENERGY WORKSHOP_SG (BLAI)
ENERGY WORKSHOP_SG (BLAI)
 
metlife Investor Day 2008 International
metlife Investor Day 2008 Internationalmetlife Investor Day 2008 International
metlife Investor Day 2008 International
 
My new life in Canada
My new life in CanadaMy new life in Canada
My new life in Canada
 
Why Metlife
Why MetlifeWhy Metlife
Why Metlife
 
Technology Futures In Life Insurance
Technology Futures In Life InsuranceTechnology Futures In Life Insurance
Technology Futures In Life Insurance
 
Middle class and Quality of life - Canada
Middle class and Quality of life - Canada Middle class and Quality of life - Canada
Middle class and Quality of life - Canada
 
metlife Proxy Statement2007
metlife Proxy Statement2007metlife Proxy Statement2007
metlife Proxy Statement2007
 
Aviva 2014 Results Presentation
Aviva 2014 Results Presentation Aviva 2014 Results Presentation
Aviva 2014 Results Presentation
 

Similar to Aviva Real Retirement Report Autumn 2014

Making your money last in retirement - Aviva's longevity report
Making your money last in retirement  - Aviva's longevity reportMaking your money last in retirement  - Aviva's longevity report
Making your money last in retirement - Aviva's longevity reportAviva plc
 
Money Matters Snapshots Report 2015
Money Matters Snapshots Report 2015Money Matters Snapshots Report 2015
Money Matters Snapshots Report 2015McCallum Layton
 
"If only I had"... LV= insights into retirement planning webinar
"If only I had"... LV= insights into retirement planning webinar"If only I had"... LV= insights into retirement planning webinar
"If only I had"... LV= insights into retirement planning webinarILC- UK
 
2015 Aegon Retirement Readiness Survey
2015 Aegon Retirement Readiness Survey2015 Aegon Retirement Readiness Survey
2015 Aegon Retirement Readiness SurveyAegon
 
hsbc future of-retirement-uk-report
hsbc future of-retirement-uk-reporthsbc future of-retirement-uk-report
hsbc future of-retirement-uk-reportcoussey
 
Ontario Retirement Security Research
Ontario Retirement Security ResearchOntario Retirement Security Research
Ontario Retirement Security ResearchThe Gandalf Group
 
Employee Health & Financial Wellness approach
Employee Health & Financial Wellness approachEmployee Health & Financial Wellness approach
Employee Health & Financial Wellness approachWarren Handsor
 
Retiree Research: The Current State of Retirement (April 2016)
Retiree Research: The Current State of Retirement (April 2016)Retiree Research: The Current State of Retirement (April 2016)
Retiree Research: The Current State of Retirement (April 2016)Aegon
 
How do retirees draw down their savings?
How do retirees draw down their savings?How do retirees draw down their savings?
How do retirees draw down their savings?mysteriousfirew67
 
Aegon Retirement Readiness Report - The New Flexible Retirement
Aegon Retirement Readiness Report - The New Flexible RetirementAegon Retirement Readiness Report - The New Flexible Retirement
Aegon Retirement Readiness Report - The New Flexible RetirementAegon
 
The Difficulty of Saving
The Difficulty of SavingThe Difficulty of Saving
The Difficulty of SavingBrady Speers
 
KHC 7 Mistakes Women in financial Planning 4-4-15
KHC 7 Mistakes Women in financial Planning 4-4-15KHC 7 Mistakes Women in financial Planning 4-4-15
KHC 7 Mistakes Women in financial Planning 4-4-15Joni Lindquist, MBA
 
AARP_KY_Karen_C_Financial_Security
AARP_KY_Karen_C_Financial_SecurityAARP_KY_Karen_C_Financial_Security
AARP_KY_Karen_C_Financial_SecurityScott Wegenast
 
Aegon 2013 Retirement Readiness Survey
Aegon 2013 Retirement Readiness SurveyAegon 2013 Retirement Readiness Survey
Aegon 2013 Retirement Readiness SurveyAegon
 
Your+Retirement Nov+2004+Newsletter3
Your+Retirement Nov+2004+Newsletter3Your+Retirement Nov+2004+Newsletter3
Your+Retirement Nov+2004+Newsletter3Martin Demarest
 

Similar to Aviva Real Retirement Report Autumn 2014 (20)

Making your money last in retirement - Aviva's longevity report
Making your money last in retirement  - Aviva's longevity reportMaking your money last in retirement  - Aviva's longevity report
Making your money last in retirement - Aviva's longevity report
 
Money Matters Snapshots Report 2015
Money Matters Snapshots Report 2015Money Matters Snapshots Report 2015
Money Matters Snapshots Report 2015
 
"If only I had"... LV= insights into retirement planning webinar
"If only I had"... LV= insights into retirement planning webinar"If only I had"... LV= insights into retirement planning webinar
"If only I had"... LV= insights into retirement planning webinar
 
2015 Aegon Retirement Readiness Survey
2015 Aegon Retirement Readiness Survey2015 Aegon Retirement Readiness Survey
2015 Aegon Retirement Readiness Survey
 
hsbc future of-retirement-uk-report
hsbc future of-retirement-uk-reporthsbc future of-retirement-uk-report
hsbc future of-retirement-uk-report
 
Ontario Retirement Security Research
Ontario Retirement Security ResearchOntario Retirement Security Research
Ontario Retirement Security Research
 
Employee Health & Financial Wellness approach
Employee Health & Financial Wellness approachEmployee Health & Financial Wellness approach
Employee Health & Financial Wellness approach
 
Retiree Research: The Current State of Retirement (April 2016)
Retiree Research: The Current State of Retirement (April 2016)Retiree Research: The Current State of Retirement (April 2016)
Retiree Research: The Current State of Retirement (April 2016)
 
How do retirees draw down their savings?
How do retirees draw down their savings?How do retirees draw down their savings?
How do retirees draw down their savings?
 
Aegon Retirement Readiness Report - The New Flexible Retirement
Aegon Retirement Readiness Report - The New Flexible RetirementAegon Retirement Readiness Report - The New Flexible Retirement
Aegon Retirement Readiness Report - The New Flexible Retirement
 
Viewpoint_Issue_7
Viewpoint_Issue_7Viewpoint_Issue_7
Viewpoint_Issue_7
 
Living Longer
Living LongerLiving Longer
Living Longer
 
The Difficulty of Saving
The Difficulty of SavingThe Difficulty of Saving
The Difficulty of Saving
 
The Oldest Boomers
The Oldest BoomersThe Oldest Boomers
The Oldest Boomers
 
KHC 7 Mistakes Women in financial Planning 4-4-15
KHC 7 Mistakes Women in financial Planning 4-4-15KHC 7 Mistakes Women in financial Planning 4-4-15
KHC 7 Mistakes Women in financial Planning 4-4-15
 
AARP_KY_Karen_C_Financial_Security
AARP_KY_Karen_C_Financial_SecurityAARP_KY_Karen_C_Financial_Security
AARP_KY_Karen_C_Financial_Security
 
1805 06 newsletter
1805 06 newsletter1805 06 newsletter
1805 06 newsletter
 
Aegon 2013 Retirement Readiness Survey
Aegon 2013 Retirement Readiness SurveyAegon 2013 Retirement Readiness Survey
Aegon 2013 Retirement Readiness Survey
 
Crunching the Numbers
Crunching the NumbersCrunching the Numbers
Crunching the Numbers
 
Your+Retirement Nov+2004+Newsletter3
Your+Retirement Nov+2004+Newsletter3Your+Retirement Nov+2004+Newsletter3
Your+Retirement Nov+2004+Newsletter3
 

More from Aviva plc

Aviva 2018 Interim Results Presentation
Aviva 2018 Interim Results PresentationAviva 2018 Interim Results Presentation
Aviva 2018 Interim Results PresentationAviva plc
 
Aviva 2017 Interim Results announcement
Aviva 2017 Interim Results announcementAviva 2017 Interim Results announcement
Aviva 2017 Interim Results announcementAviva plc
 
Aviva 2017 Interim Results Analyst presentation
Aviva 2017 Interim Results Analyst presentationAviva 2017 Interim Results Analyst presentation
Aviva 2017 Interim Results Analyst presentationAviva plc
 
Aviva Plc 2016 Results Infographic
Aviva Plc 2016 Results InfographicAviva Plc 2016 Results Infographic
Aviva Plc 2016 Results InfographicAviva plc
 
Aviva Plc 2016 Preliminary Results Announcement
Aviva Plc 2016 Preliminary Results AnnouncementAviva Plc 2016 Preliminary Results Announcement
Aviva Plc 2016 Preliminary Results AnnouncementAviva plc
 
Aviva Plc 2016 Results
Aviva Plc 2016 ResultsAviva Plc 2016 Results
Aviva Plc 2016 ResultsAviva plc
 
Capital Markets Day 2016 presentation slides
Capital Markets Day 2016 presentation slidesCapital Markets Day 2016 presentation slides
Capital Markets Day 2016 presentation slidesAviva plc
 
Aviva at a glance infographic
Aviva at a glance infographicAviva at a glance infographic
Aviva at a glance infographicAviva plc
 
Aviva FY15 Analyst Pack
Aviva FY15 Analyst PackAviva FY15 Analyst Pack
Aviva FY15 Analyst PackAviva plc
 
Aviva 2015 Results Infographic
Aviva 2015 Results InfographicAviva 2015 Results Infographic
Aviva 2015 Results InfographicAviva plc
 
6 things you probably don’t know about online insurance
6 things you probably don’t know about online insurance6 things you probably don’t know about online insurance
6 things you probably don’t know about online insuranceAviva plc
 
Aviva half year 2015 announcement
Aviva half year 2015 announcementAviva half year 2015 announcement
Aviva half year 2015 announcementAviva plc
 
Aviva half year results 2015 analyst presentation
Aviva half year results 2015 analyst presentationAviva half year results 2015 analyst presentation
Aviva half year results 2015 analyst presentationAviva plc
 
Aviva plc First Quarter 2015 Interim Management Statement
Aviva plc First Quarter 2015 Interim Management Statement Aviva plc First Quarter 2015 Interim Management Statement
Aviva plc First Quarter 2015 Interim Management Statement Aviva plc
 
Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...
Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...
Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...Aviva plc
 
Road to reform: Driving out compensation culture
Road to reform: Driving out compensation cultureRoad to reform: Driving out compensation culture
Road to reform: Driving out compensation cultureAviva plc
 
Aviva plc Third Quarter 2014 Interim Management Statement
Aviva plc Third Quarter 2014 Interim Management StatementAviva plc Third Quarter 2014 Interim Management Statement
Aviva plc Third Quarter 2014 Interim Management StatementAviva plc
 
Half Year 2014 Results Announcement
Half Year 2014 Results AnnouncementHalf Year 2014 Results Announcement
Half Year 2014 Results AnnouncementAviva plc
 
Aviva HY 2014 analyst presentation
Aviva HY 2014 analyst presentationAviva HY 2014 analyst presentation
Aviva HY 2014 analyst presentationAviva plc
 
Road to Reform: Tackling the UK’s Compensation Culture July 2014
Road to Reform: Tackling the UK’s Compensation Culture July 2014Road to Reform: Tackling the UK’s Compensation Culture July 2014
Road to Reform: Tackling the UK’s Compensation Culture July 2014Aviva plc
 

More from Aviva plc (20)

Aviva 2018 Interim Results Presentation
Aviva 2018 Interim Results PresentationAviva 2018 Interim Results Presentation
Aviva 2018 Interim Results Presentation
 
Aviva 2017 Interim Results announcement
Aviva 2017 Interim Results announcementAviva 2017 Interim Results announcement
Aviva 2017 Interim Results announcement
 
Aviva 2017 Interim Results Analyst presentation
Aviva 2017 Interim Results Analyst presentationAviva 2017 Interim Results Analyst presentation
Aviva 2017 Interim Results Analyst presentation
 
Aviva Plc 2016 Results Infographic
Aviva Plc 2016 Results InfographicAviva Plc 2016 Results Infographic
Aviva Plc 2016 Results Infographic
 
Aviva Plc 2016 Preliminary Results Announcement
Aviva Plc 2016 Preliminary Results AnnouncementAviva Plc 2016 Preliminary Results Announcement
Aviva Plc 2016 Preliminary Results Announcement
 
Aviva Plc 2016 Results
Aviva Plc 2016 ResultsAviva Plc 2016 Results
Aviva Plc 2016 Results
 
Capital Markets Day 2016 presentation slides
Capital Markets Day 2016 presentation slidesCapital Markets Day 2016 presentation slides
Capital Markets Day 2016 presentation slides
 
Aviva at a glance infographic
Aviva at a glance infographicAviva at a glance infographic
Aviva at a glance infographic
 
Aviva FY15 Analyst Pack
Aviva FY15 Analyst PackAviva FY15 Analyst Pack
Aviva FY15 Analyst Pack
 
Aviva 2015 Results Infographic
Aviva 2015 Results InfographicAviva 2015 Results Infographic
Aviva 2015 Results Infographic
 
6 things you probably don’t know about online insurance
6 things you probably don’t know about online insurance6 things you probably don’t know about online insurance
6 things you probably don’t know about online insurance
 
Aviva half year 2015 announcement
Aviva half year 2015 announcementAviva half year 2015 announcement
Aviva half year 2015 announcement
 
Aviva half year results 2015 analyst presentation
Aviva half year results 2015 analyst presentationAviva half year results 2015 analyst presentation
Aviva half year results 2015 analyst presentation
 
Aviva plc First Quarter 2015 Interim Management Statement
Aviva plc First Quarter 2015 Interim Management Statement Aviva plc First Quarter 2015 Interim Management Statement
Aviva plc First Quarter 2015 Interim Management Statement
 
Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...
Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...
Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...
 
Road to reform: Driving out compensation culture
Road to reform: Driving out compensation cultureRoad to reform: Driving out compensation culture
Road to reform: Driving out compensation culture
 
Aviva plc Third Quarter 2014 Interim Management Statement
Aviva plc Third Quarter 2014 Interim Management StatementAviva plc Third Quarter 2014 Interim Management Statement
Aviva plc Third Quarter 2014 Interim Management Statement
 
Half Year 2014 Results Announcement
Half Year 2014 Results AnnouncementHalf Year 2014 Results Announcement
Half Year 2014 Results Announcement
 
Aviva HY 2014 analyst presentation
Aviva HY 2014 analyst presentationAviva HY 2014 analyst presentation
Aviva HY 2014 analyst presentation
 
Road to Reform: Tackling the UK’s Compensation Culture July 2014
Road to Reform: Tackling the UK’s Compensation Culture July 2014Road to Reform: Tackling the UK’s Compensation Culture July 2014
Road to Reform: Tackling the UK’s Compensation Culture July 2014
 

Recently uploaded

Swift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdfSwift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdfNeo4j
 
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdfjamie766122
 
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTXAUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTXkamikazekujoh
 
Buy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper ColinBuy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper ColinJasper Colin
 
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...indexPub
 
powerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalismpowerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalismrezeraaisla
 
Islamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until nowIslamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until nowhamidzafar6
 
Stock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdfStock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdfMichael Silva
 
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdfMytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdfNewsroom8
 
First, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic EconomicssFirst, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic EconomicssAsad Zaman
 
Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]Commonwealth
 
Pros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR LoansPros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR LoansPark Place Finance LLC
 
2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdf2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdfAdnet Communications
 
renaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxismrenaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxismthxz2fdqxw
 
Challenging Factors of Rural Women Entrepreneurs in West Bengal
Challenging Factors of Rural Women Entrepreneurs in West  BengalChallenging Factors of Rural Women Entrepreneurs in West  Bengal
Challenging Factors of Rural Women Entrepreneurs in West BengalNabarun Chakraborty
 
Stock Market Brief Deck FOR 31124 yt.pdf
Stock Market Brief Deck FOR 31124 yt.pdfStock Market Brief Deck FOR 31124 yt.pdf
Stock Market Brief Deck FOR 31124 yt.pdfMichael Silva
 
2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentation2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentationAdnet Communications
 
Planning of societal re/production in a commonist society
Planning of societal re/production in a commonist societyPlanning of societal re/production in a commonist society
Planning of societal re/production in a commonist societyStefanMz
 
BIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIBBIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIBNeil Day
 

Recently uploaded (20)

Swift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdfSwift_Maintaining Critical Standards(...).pptx.pdf
Swift_Maintaining Critical Standards(...).pptx.pdf
 
Closing Remarks International Women's Day 2024
Closing Remarks International Women's Day 2024Closing Remarks International Women's Day 2024
Closing Remarks International Women's Day 2024
 
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
14.11.2024 AMOO-MOCA African Creative Economy Summit London summary.pdf
 
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTXAUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
AUDITING FRAUDS OF AN ENGLISH COMPANY.PPTX
 
Buy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper ColinBuy-Side Leaps Into Gen AI Era by Jasper Colin
Buy-Side Leaps Into Gen AI Era by Jasper Colin
 
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
ANALYSIS OF BANK MANDIRI S HEALTH LEVEL BASED ON RISK PROFILE, GOOD CORPORATE...
 
powerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalismpowerpoint presentation about asian regioonalism
powerpoint presentation about asian regioonalism
 
Islamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until nowIslamic banking in Afghanistan from start until now
Islamic banking in Afghanistan from start until now
 
Stock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdfStock Market Brief Deck FOR 3142024..pdf
Stock Market Brief Deck FOR 3142024..pdf
 
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdfMytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
Mytilineos (OW, TP_ €46.0_sh)_ Strong organic progress 14-03-2024.pdf
 
First, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic EconomicssFirst, Second, and Third Generation Islamic Economicss
First, Second, and Third Generation Islamic Economicss
 
Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]Economic Risk Factor Update: March 2024 [SlideShare]
Economic Risk Factor Update: March 2024 [SlideShare]
 
Pros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR LoansPros and Cons of Interest-Only DSCR Loans
Pros and Cons of Interest-Only DSCR Loans
 
2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdf2024.03 Strategic Resources_Pub (1). pdf
2024.03 Strategic Resources_Pub (1). pdf
 
renaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxismrenaltumors upasana sahu Group 50.pptxism
renaltumors upasana sahu Group 50.pptxism
 
Challenging Factors of Rural Women Entrepreneurs in West Bengal
Challenging Factors of Rural Women Entrepreneurs in West  BengalChallenging Factors of Rural Women Entrepreneurs in West  Bengal
Challenging Factors of Rural Women Entrepreneurs in West Bengal
 
Stock Market Brief Deck FOR 31124 yt.pdf
Stock Market Brief Deck FOR 31124 yt.pdfStock Market Brief Deck FOR 31124 yt.pdf
Stock Market Brief Deck FOR 31124 yt.pdf
 
2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentation2024.03 Strategic Resources_Pub presentation
2024.03 Strategic Resources_Pub presentation
 
Planning of societal re/production in a commonist society
Planning of societal re/production in a commonist societyPlanning of societal re/production in a commonist society
Planning of societal re/production in a commonist society
 
BIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIBBIHC Briefing Greece March 2024, with Crédit Agricole CIB
BIHC Briefing Greece March 2024, with Crédit Agricole CIB
 

Aviva Real Retirement Report Autumn 2014

  • 1. The Aviva Real Retirement Report Autumn 2014 Freedom and choice special edition
  • 2. Contents Foreword 3 Freedom and choice 4 Having enough money through the retirement years 6 Economic overview 8 Income 10 Expenditure 12 RPI index 13 Borrowing/debt 14 Homeownership 16 Savings/Assets 18 So what does this tell us? 19
  • 3. Clive Bolton, managing director, retirement solutions, Aviva In this Real Retirement Report special edition we look at over-55s’ attitudes to their finances in Q2 2014 and the degree to which they are concerned about running out of money in later life. It is an important question because over-55s will have increased flexibility from April 2015* in how they take their defined contribution pension savings. The opportunity of taking all of their money in one go could prove too tempting for many, but whether they will is yet to be seen. My view is that savers will largely continue to look for reliable and good value retirement solutions. In this report we look at people’s attitudes to the freedom and choice changes announced in this year’s Budget. It is interesting to consider what people actually think about the new freedom and choice options being offered from next year. The early signs are that there is still a lot of work to do to explain to people what that increased flexibility will offer them, and that the new options need careful consideration. Advice and guidance is likely to prove key in helping people make informed decisions. In the regular tracker section of this report we see the UK’s over-55s continuing to benefit from the improving economy. Income, spending and borrowing are all generally increasing over time, potentially encouraged by improving property prices of late. Spending on what we would normally consider luxury items, for instance, has increased suggesting that the over-55s feel they have more disposable income than recent times. It is interesting to see this pattern of increased consumer confidence emerge as the UK continues its recovery. It is possible that we are seeing the start of a return to the high spending and high borrowing economy that we saw prior to the recession. If this is the case then we should call for caution when it comes to retirement planning as there has never been a more important time to think carefully about how best to budget for retirement. The Aviva Real Retirement Report – Autumn 3 Foreword * From April 2015, from age 55 years, people will be able to take their defined contribution pension savings how they wish, subject to their marginal rate of income tax in that year, and 25% of their pot will remain tax-free. These changes were announced in the 2014 Budget.
  • 4. Freedom and choice – how the over-55s plan to respond to the Budget 2014 changes With the new flexibilities offered by the 2014 Budget just around the corner, there has been a huge focus on how over-55s will respond and concern about their potential to spend all their money too early. How over-55s feel about having earlier and more flexible access to their pension savings The Aviva Real Retirement Report – Autumn 4 This speculation all presumes that those making their retirement decisions from April 2015 will be inclined to access their pension savings early rather than taking the more traditional guaranteed income offered through an annuity or looking to a long-term income drawdown plan, with some money still invested. Awareness about the Budget changes is high with 78% of over-55s (who are not yet retired) saying they know about the changes, and only 10% saying they do not. Interestingly, there is less awareness among a slightly younger cohort of 45-54** year olds with 70% awareness. Despite this level of awareness, more than half (55%) of over-55s who are not retired say the changes do not affect them, suggesting that advice and guidance needs to play a significant role in ensuring people thoroughly consider the new options open to them from April next year. More than half (54%) say the freedom and choice changes will not alter how they actually prepare for retirement, and 36% say they do not know whether they will. Only 10% say they will affect their plans. Even many of the younger cohort of 45-54 year olds, who will have more time to consider and prepare for the increased flexibility, say the changes will not affect their plans (36%) or they don’t know whether they will (54%). Only 7% of over-55s say they are worried about spending their pension savings too early and running out of money because of the new freedoms, although this is significantly higher in a younger 45-54 year old cohort at 16%. ** For this freedom and choice spotlight we also asked a younger cohort of people aged 45-54 year olds, to track their emerging views on the Budget changes. All data using this age group is referenced. All other figures relate to the over-55s. 55% 11% 8% 7% 19% Does not affect me Peace of mind in being able to access money how and when they want More anxious about having enough money to last the whole of retirement. Confused over having more decisions to make about pension savings Worried about spending pensions savings too early and running out of money
  • 5. Benefits of taking all their pension savings as a lump sum The Aviva Real Retirement Report – Autumn 5 Perhaps one reason for the lack of concern over running out of money due to the freedom and choice changes is that half (49%) of over-55s who are not retired say they do not see any advantages to taking their pension savings as a lump sum, potentially allaying fears of people spending their money too soon. Whether this opinion will change over time is yet to be seen, and may well be affected by the economic landscape at the time. Of the 10% of over-55s who say their plans for taking their pension savings will change, the majority (59%) say they are more likely to take some or all of their pension savings as soon as they can, and 34% say they may take some of their pension savings as a lump sum to fund their retirement. 49% 19% 12% 23% 14% 8% Don’t see any advantages To supplement income in retirement Spending money before retirement or during retirement for personal interests Pay off the mortgage To supplement income while still working To pay off debts, such as credit cards Over-55s who are not retired say:
  • 6. Having enough money through the retirement years With increasing confidence in the economy, the UK’s over-55s are experiencing one of the most buoyant economic periods in the history of this report. More money in their pockets, property prices rising and increased spending indicates a returning optimism to this part of the population. Despite an overall trend towards increasing confidence, many over-55s remain concerned about whether they will have enough money to live on in retirement. While 52% think they will have enough money in retirement, 17% think they will not have enough, and a further 27% will only go as far as saying they may have enough. Those people who do not feel they will have enough money in retirement put it down to: The Aviva Real Retirement Report – Autumn 6 I didn’t earn enough to allow me to save adequately Difficult economic times have hindered the amount I can save I haven’t saved adequately in my life I have had many unexpected expenses for which I have had to use my savings I have spent a lot of my savings on helping support my family 40% 35% 20% 16% 27% 40 35 30 25 20 15 10 5 0
  • 7. Things to cut back on and pr The possibility of running out of money eserve in retirement if money runs short in retirement becomes more likely when people have the option to take all of their pension savings how they wish – including in one cash instalment as they can from April next year. For today’s over-55s, running out of money is a possibility, but many are clear on what they are prepared to cut back on if necessary and what remains absolutely critical to their lifestyle, as can be seen from the accompanying graphics. Only 5% of people say a key worry is living longer than they expect and not having the money to fund their retirement. And 8% also say they are worried about running out of money in retirement because they have spent too much, too soon. This relatively low level of concern sits in stark contrast to what the over-55s feel are the more fundamental concerns about growing older: ill health (56%), conditions such as dementia (50%), being dependent on other people (36%), going into a care home (30%), and dying or people close to them passing away (25%). Things over-55s have/will cut back on if necessary 45% 36% 40% Things over-55s are not prepared to give up 44% 41% The Aviva Real Retirement Report – Autumn 7 24% 14% Eating out/ evening entertainment Eating out/ evening entertainment 48% Home Seeing friends and family 36% 31% Holidays and hobbies Holidays and hobbies 7% Household upgrades Household upgrades On all things 28% 16% Gifts and treats for myself, friends and family Gifts and treats for myself, friends and family General living General living
  • 8. 2013 2014 The Aviva Real Retirement Report – Autumn 8 Economic Overview 2014 has seen unemployment levels return to pre-recession levels, with the economy growing at a healthier rate once again and signs all pointing to a more positive economic outlook. This improved economic trend is reflected in the views and behaviours of those aged over-55 years in Q2 2014 as they become financially more confident. However, there are signs to take heed of in the over-55s, particularly in how Ôborrowing’ rather than Ôsaving’ is beginning to be used to fund the lifestyles people want. UK economic confidence has never been higher with 43% of those aged over-55 feeling Ôvery/quite confident’ about the economy and 29% feeling Ônot very/not at all’ confident. Compared to recent years, the positive pattern is very clear amongst this segment of the population and has not been higher since the recession. Consumer confidence among the over-55s 2010 Q2 22% Q3 18% Q4 19% 2011 Q1 16% Q2 25% Q3 7% Q4 10% 2012 Q1 16% Q2 17% Q3 13% Q4 16% Q1 13% Q2 16% Q3 27% Q4 33% Q1 Q2 43% 43% Consumer confidence - % of those that feel quite/very confident about the economy
  • 9. There are a number of signs that the over-55s are beginning the move back to an economy built on borrowing and spending. One instance where this can be seen is in monthly ‘in-goings and out-goings’. As borrowing rates have started to rise, household expenditure is also increasing – especially amongst the more ‘luxury’ items, such as eating out and holidays. This is at a time when the average household shopping basket (measured in the RPI Index – page 13) continues to remain quite low, and thereby keeping disposable income relatively high. A point particularly relevant to the over-55s is how closely the improved economic outlook, which is starting to drive spend, is built purely on the housing bubble. The over-55s are most likely to own their own home (almost two-thirds of those aged over-55 do so) and so benefit from the recent house price trends. However, they are therefore also the section of the population most likely to be hit fastest and hardest if ‘the housing bubble’ bursts. Average house prices for the over-55s compared to consumer confidence Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 £221,778 13% £229,431 16% £231,267 27% £233,764 33% £240,641 43% £253,322 43% The Aviva Real Retirement Report – Autumn 9 House price values for the over-55s Consumer Confidence
  • 10. 37% 15% The Aviva Real Retirement Report – Autumn 10 Income Income is continuing to remain slightly higher in 2014 than in previous years, with the middle income value (median) for over-55s being £1,346 a month compared to £1,212 in Q2 2013. With the economy improving, incomes do seem to be trending upwards slightly amongst this section of the population. Regional disparities persist with London seeing a typical income of £1,587 a month, closely followed by the South East at £1,473 and both around £200 more than almost any other region. Despite income in the over-55s increasing over time, we have seen that a significant proportion of this group do not feel confident about their ability to fund their retirement and adequately finance what they need to pay for. The link between a lack of financial confidence and income level is evident with a monthly income of about £1,800 seeming to be the marker at which an individual is more likely than not to feel comfortable about their financial situation. Comparison of monthly income amongst those who feel they have ‘enough’ money for retirement, and those who do not 16% 13% 4% 2% Feel they have enough money in retirement Feel they might not have enough money in retirement 22% 8% 5% Up to £100 6% 9% 28% Between £101 - £250 Between £251 - £500 Between £501 - £750 2% 4% 13% Between £751 - £1000 Between £1001 - £1250 Between £1251 - £2500 Between £1251 - £2500 1% £5000+
  • 11. Sources of income in retirement The Aviva Real Retirement Report – Autumn 11 Sources of income: As expected there is a clear split in how people source their income, depending on whether they are working or not. Those aged 55-64 years are far more likely to receive their income from their wage (56%), while more than 95% of those aged 65 years and over cite their state pension as the main source. The shifting propensity to spend is perhaps reflected too in the continuing rise of savings and investments as a source of income which is now seen to be a source by 30% of over-55s, the highest score seen since 2011. Personal pension State pension Employer pension Investments/ savings Annuity Rental income Spouse’s pension Money from family Wages/ other earned income Benefits inc. unemployment Other 25% 41% 44% 21% 95% 98% 27% 48% 45% 24% 36% 36% 6% 15% 16% 5% 4% 5% 15% 40% 40% 2% 0% 1% 56% 21% 4% 18% 10% 10% 3% 1% Ages 55-64 65-74 Over-75s 2%
  • 12. Personal expenditure continues to climb amongst this demographic with a typical monthly expenditure of £846 (compared to £792 in Q2 2013), which is also the highest seen since this tracker began. The monthly spend for the over-55s and proportion of total spend Clothing & footwear £32 4% Fares & other travel costs £30 4% Food £207 25% £77 9% Leisure goods such The Aviva Real Retirement Report – Autumn 12 Expenditure Entertainment, recreation & holidays as sports equipment or CDs £9 1% Postage, telephone calls & internet connections £40 5% Fuel & Light £113 13% Housing (mortgage or rent) £108 13% Personal goods & services such as make-up & medicine £17 2% Furniture, appliances & pet care £19 2% Motoring £66 8% Eating out or takeaways £35 4% Cigarettes & tobacco £14 2% Debt repayment £43 5% Alcohol £34 4% The monthly spend for the over-55s is made up of a variety of core items but the main ones being food, fuel and (for those it applies to) their mortgage. The key areas where expenditure appears to be rising is in luxury items, which are those that were likely to come off the shopping list first when times were harder in recent years. For instance, holidays, clothing and eating out are all at their highest levels since the tracking began. £846 Total monthly spend Over-55s shoppping bag - items that have seen an increase in spend spend and proportion of monthly basket Alcohol £34 4% Highest since tracking began Clothing and footwear £32 4% Highest since tracking began Eating out or takeaways £35 4% Highest since tracking began Entertainment, recreation and holidays £77 9% Second highest - second only to Q1 2014 Fares and other travel costs £30 4% Highest since tracking began
  • 13. 2012 2013 2014 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 The Aviva Real Retirement Report – Autumn 13 Retail Prices Index (RPI) Interestingly, as spending has increased, the relative cost of a shopping basket, the RPI index, is still relatively low amongst this segment of the population at 2.4 (Q2 2014) compared to 3.9 in Q2 2013, and one of the lowest figures seen. RPI trends amongst the population aged over-55 What does this mean? The price of goods is still comparatively low, relative incomes are quite high and, thanks to the improved economic outlook, people seem to be spending more on the enjoyable things in life. Fuel shortages? With the relative price of fuel actually falling a little this quarter the share of wallet it takes has dropped accordingly. Fuel is a key part of the monthly outgoings for this group of the population making up 10-15% of the bill. Recent reports of fuel hikes and speculation around gas prices continuing to rise disproportionately to costs don’t seem to be reflected in this survey. Indeed, gas prices actually seem to fall slightly and we see the same pattern here with fuel and light expenditure at £113, lower than it has been in Q4 2013 and Q1 2014. 2011 RPI - 5.1% RPI - 5.0% RPI - 3.8% RPI - 1.9% RPI - 5.6% RPI - 3.7% RPI - 3.9% RPI - 2.4% RPI - 5.8% RPI - 3.8% RPI - 3.7% Q3 Q3 Q3 RPI - 7.0% RPI - 3.3% RPI - 1.8% Q4 Q4 Q4
  • 14. £817 £765 The Aviva Real Retirement Report Ð Autumn 14 Borrowing/debt Few people in this segment of the population have extensive debts with the majority having paid off their mortgage and settling into retirement. However, amongst those that do, the three most prominent forms of debt are credit cards, personal loans and overdrafts. A typical person in this age group owes £817 on their credit card, £765 in personal loans and £104 on their overdraft. These are also the three areas to have seen the highest increase in debt owed this wave, all individually increasing on Q1 2014 and together forming one of the highest amounts of unsecured debt since this tracker began. Taking into account the slightly more unusual (and prone to monthly variance) forms of debt, for instance store cards, doorstop lenders and other informal borrowing, Q2 2014 stills sees exactly the same pattern as is seen in the three most prominent forms of borrowing (credit cards, personal loans and overdraft). Here the typical person aged over-55 owes £2,269 Ð again one of the largest figures for total owed since the tracking began. This sort of value has not been seen since late 2011 when people were most likely looking to pay off debts generated before the troubles of 2009. At a time when personal, luxury spending is showing record highs we also seeing forms of debt start to creep up too Ð even though the relative price of goods is still quite low. Could this be the first sign of the return of the Ôhigh borrowing Ð high spendingÕ economic model Britain flourished under for many years. The amount over-55s owe on the three key forms of unsecured debt Credit Card Personal loans £104 £ Overdraft Q2 2014
  • 15. The amount over-55s owe on the three key forms of unsecured debt NET £1,596 NET £1,409 £806 £643 NET NET £738 £860 £713 The Aviva Real Retirement Report – Autumn 15 NET NET NET Credit card Key Personal loans Overdraft £ 2013 Q3 £1,531 £582 £89 Q4 £1,536 £668 £155 Q2 £1,415 £582 £95 Q1 £148 2011 Q3 £1,993 £985 £871 £1,750 £916 £677 £157 Q4 £2169 £1033 £833 £303 Q2 £1,727 £755 £101 Q1 £221 £787 2012 Q3 £1,687 £780 £876 £1,481 £794 £577 £110 Q4 £1541 £809 £604 £128 Q2 £1,560 £567 £117 Q1 £644 £263 2014 Q2 £777 £541 £1,687 £817 £765 £104 Q1 £92 NET NET NET NET NET NET NET NET
  • 16. Property is by far the largest asset for this group with 61% owning their home outright and 20% owning it but with a mortgage. The average price of a house is £253,322, a figure that has never been higher amongst this age group. Regional disparities exist between incomes and amount the people tend to save but none are quite as profound as the variance in property prices seen across the UK. At £458,944, London is more than double almost any other region. A total of 12% of the population in this demographic own a second house too. With the average price of the second home at £223,253 this is another asset the over-55s have that continues to grow in price. Own their own home with a mortgage Average price of over-55s homes The Aviva Real Retirement Report –– Autumn 16 Homeownership £253,322 Own their own home 61% 20% Own a second house Average price of second house £223,253 12%
  • 17. The Aviva Real Retirement Report – Autumn 17 A regional snap-shot of over-55s in the UK There are signs that the confidence in borrowing and spending in the over-55s could in part be fuelled by the buoyancy of the housing market. If this is the case, then the over-55s will potentially feel the brunt of any fluctuations in the housing market in the UK in the coming months and years. North East North West Scotland Wales Yorkshire and the Humber South West South East East of England London West Midlands Northern Ireland East Midlands £195,186 £1,245 £1,545 £199,367 £1,706 £6,214 £176,604 £1,239 £1,888 Regional overview: Property Value Income Debt in £ covering credits cards, personal loans and overdraft * Note - Northern Ireland figures are based on a small sample size. £183,605 £1,361 £1,836 £224,796 £1,182 £2,141 £224,861 £1,110 £1,647 £243,734 £1,251 £833 £324,100 £1,473 £1,949 £458,944 £1,587 1,034 £208,795 £1,346 £1,833 £206,453 £1,275 £1,515 £274,114 £1,445 £1,671 *
  • 18. Q1 Q1 Q1 The Aviva Real Retirement Report – Autumn 18 Savings/Assets In our last report, in Spring 2014, we reported that Q1 2014 had seen some of the highest savings since this tracking began. While still high, Q2 has not quite followed the same trend with a typical over-55 year old owning £14,779 in savings and investments, compared to £11,894 in Q2 2013. This is typically higher among the elderly with the over-75s category owning £20,211, 65-74s owning £20,844 and 55-65s just £10,067. Average savings this quarter have fallen slightly with a typical person aged over-55 years putting away £46 each month. This represents a £2 drop since Q1 2014 where the typical amount saved was £48 per month. By historic standards this is still a very high amount saved, indeed second only to Q1 2014 when looking at the amount this group tends to put away each month. The correlation between income and savings looks to follow quite closely in recent waves as we can see in the following graphic. Typical monthly income and how much people save/invest each month 2012 2013 2014 £1,157 £28 £1,222 £35 £1,373 £48 £1,192 Q2 £20 £1,212 Q2 £32 £1,346 Q2 £46 £1,373 Q3 £38 £1,270 Q3 £36 Monthly income Savings/investments made each month £1,242 Q4 £18 £1,299 Q4 £40
  • 19. 2 Continue to save. Many over-55s continue to work either full-time or part-time The Aviva Real Retirement Report – Autumn 19 So what does this tell us? The Autumn 2014 Real Retirement Report looks in detail at the finances of the over-55s and explores people’s views on running out of money, and how they feel the changes announced in the 2014 Budget will affect them. Aviva recommends consumers consider the following: Be conscious that the improving economy and property prices can fluctuate. If your spending and borrowing habits are partly fuelled by the recovering economy and the significant price increases in property – then exercise some caution. The economy and property prices can rise and fall, and it’s important to always spend within your means and stick to your budget. 4 Have a realistic view of how much money you will need to last you for the remainder of your life. As you plan your retirement, be clear about how much money you will need in retirement, and how long you expect to live. Being realistic about your financial needs into your later years, and how they could change, will help you budget accordingly and not over-spend. 1 Get up to speed with the changes being introduced by the government that will give you far more freedom in how you take your retirement savings. The changes announced in the 2014 Budget will give the over-55s far more freedom in how they use their pension savings. It’s essential that you really understand what these changes mean for you, and how they could benefit you. The government pledged impartial guidance for everyone in a defined contribution pension scheme to help them make the decision that is best for them. Take this guidance and choose carefully so that you have money to last the whole of your retirement. and should, where possible, continue to put money away for the future. Maintaining a savings habit into retirement is as important as when you are younger. 5 Take a balanced approach to your spending needs, particularly as the economy recovers. Having enough money to last the whole of your retirement is essential, so be clear about what you can afford to spend now, regardless of how good the economy is looking. 3
  • 20. Methodology The Real Retirement Report is designed and produced by Aviva in consultation with ICM Research. The Real Retirement tracking survey referenced throughout this report has been running since 2010 and totals 19,193 interviews amongst the population over the age of 55 years. Some questions have only been running in a common manner since 2011 (so totalling 14,583 interviews) and thus are only reported on for this period. 1,202 people aged over 55 years were polled for this wave of research (Q2 2014) in July 2014. An additional 305 people aged over 45 years were interviewed and are only referenced where indicated in the report. Technical notes ¥ A median is described as the numeric value separating the upper half of a sample, a population, or a probability distribution, from the lower half. Thus for this report, the median is the person who is the utter middle of a sample. ¥ An average or mean is a single value that is meant to typify a list of values. This is derived by adding all the values on a list together and then dividing by the number of items on said list. This can be skewed by particularly high or low values. For further information on the report or for a comment, please contact Diane Mangan at the Aviva Press Office on 01904 684164 or diane.mangan@aviva.co.uk 106027349 08/2014 © Aviva plc The Aviva Real Retirement Report – Autumn 20