The Aviva Real Retirement Report is a quarterly analysis of the finances and related concerns of people in three stages of retirement, 55-64, 65-74, and over 75.
The Aviva Real Retirement report - Spring 2013Aviva plc
Welcome to Aviva’s Spring 2013 Real Retirement Report. We are into our third year of tracking the concerns and finances across three distinctive ages of retirement – pre-retirees (aged 55-64), retiring (65-74) and long-term retired (over-75) – and continue to find new realities and challenges emerging.
This was the final event in the Population Patterns Seminar Series which explored the “silver separators”- divorce later in life.
Figures from the Office for National Statistics published in 2012 showed a huge rise in the divorce rate amongst those in their 60s, with an increase of 58% on the 2011 figure. The last 10 years have seen more and more older people part ways, despite divorce amongst the general population becoming less common. This has happened to such an extent that the over 60’s are now the fastest growing divorce group in the UK.
A variety of reasons have been suggested, including a reduction in the stigma surrounding divorce and couples no longer feeling obliged to stay together if their attitudes and needs change.
However, figures released by the ONS in June 2012 revealed that marriages involving older people were also rising faster than for other age groups – up by 21% for women and by 25% for men in their late sixties. Re-partnership is likely to be even higher than these figures suggest, as older people in a new relationship may not choose to remarry.
During the event the discussion explored a number of themes, including:
What factors have contributed to the rising rate of divorce amongst the over 60s?
How can older people’s relationships be better supported?
What challenges does ageing present to relationships?
How do care responsibilities effect relationships?
What are the potential ramifications of older couples separating?
Many older people have equity tied up in their homes that could be used to provide them with a greater income in later life and improve their standard of living. Traditionally, the ways to unlock the equity in people’s homes have been through downsizing, equity release lifetime loans or home reversion plans. However, not everyone is in a position to downsize, there are pros and cons to each approach, and all have associated costs.
The Equity Bank would provide a new way for people to unlock the equity in their home. It would be a state agency which provides people with a low cost fixed lifetime income in exchange for a fixed share of the equity in their home. The Equity Bank would take a charge on the person’s home and recover the value of the equity from the person’s estate after their death.
The event was chaired by Baroness Sally Greengross, Chief Executive of the ILC-UK. Nick Kirwan, Director of the ILC-UK Care Funding Advice Network, opened the discussion. Professor Les Mayhew of Cass Business School and co-author of the paper 'The UK Equity Bank - Towards income security in old age' thened present the concept, after which Paul Burstow MP responded. There was then time for questions and a general discussion.
Throughout 2014, ILC-UK, supported by specialist insurance company, Partnership Assurance Group plc, is undertaking a series of events to explore the relationship between our changing demography and public policy.
The fourth event in this 'Population Patterns Seminar Series' considered the findings of our ‘Factpack’ of UK demographic statistics.
We all know that people are living longer but how is that likely to change our society? How will pensions be affected? How will we care for our growing older society when the traditional “working age” population is shrinking?
These types of debates are increasingly being played out in the media and in political circles but in order for such debates to be productive, they have to be well informed.
ILC-UK believes its 2014 ‘Factpack’ will support this process by highlighting the most recent evidence of our rapidly ageing society. Not only does it provide statistics on a range of critical topics from life expectancy to housing supply; and pensions to long-term care, it also includes a special focus on the current and potential future state of pensioner poverty.
The event was chaired by Baroness Sally Greengross (ILC-UK) with a welcome from Steve Haberman (Dean of the Cass Business School). We were delighted that Gregg McClymont MP, Shadow Minister (Work and Pensions), spoke at at the launch event. We also heard presentations from Professor Les Mayhew (Professor of Statistics, Cass Business School), Steve Groves (Chief Executive of Partnership), Ben Franklin (Research Fellow at ILC-UK) and a response from Tom Younger of the Department for Work and Pensions.
During the discussion we explored:
How the UK’s demography has changed since the release of the 2013 Factpack and how it might change in the future,
How demographic change is reshaping our society,
The challenge of pensioner poverty,
Regional variations in the experiences of older people,
How policy makers should respond to these findings.
Agenda
16:00 - 16:30 Registration
16:30 - 16:35 Welcome by Chair, Baroness Sally Greengross (ILC-UK)
16:35 - 16:40 Welcome by the Dean of Cass Business School, Professor Stete Habberman
16:40 - 16:50 Presentation from Richard Willets (Partnership)
16:50 - 17:10 Presentation from Gregg McClymont MP (Shadow Minister for Work and Pensions)
17:10 - 17:20 Presentation from Ben Franklin (ILC-UK)
17:20 - 17:30 Presentation from Professor Les Mayhew (Cass Business School) Presentation
17:30 - 17:35 Response from Tom Younger (Department for Work and Pensions)
17:35 - 18:25 Discussion/Q&A
18:25 - 18:30 Close by Chair, Baroness Sally Greengross (ILC-UK)
18:30 - 19:15 Drinks reception
The Aviva Real Retirement report - Spring 2013Aviva plc
Welcome to Aviva’s Spring 2013 Real Retirement Report. We are into our third year of tracking the concerns and finances across three distinctive ages of retirement – pre-retirees (aged 55-64), retiring (65-74) and long-term retired (over-75) – and continue to find new realities and challenges emerging.
This was the final event in the Population Patterns Seminar Series which explored the “silver separators”- divorce later in life.
Figures from the Office for National Statistics published in 2012 showed a huge rise in the divorce rate amongst those in their 60s, with an increase of 58% on the 2011 figure. The last 10 years have seen more and more older people part ways, despite divorce amongst the general population becoming less common. This has happened to such an extent that the over 60’s are now the fastest growing divorce group in the UK.
A variety of reasons have been suggested, including a reduction in the stigma surrounding divorce and couples no longer feeling obliged to stay together if their attitudes and needs change.
However, figures released by the ONS in June 2012 revealed that marriages involving older people were also rising faster than for other age groups – up by 21% for women and by 25% for men in their late sixties. Re-partnership is likely to be even higher than these figures suggest, as older people in a new relationship may not choose to remarry.
During the event the discussion explored a number of themes, including:
What factors have contributed to the rising rate of divorce amongst the over 60s?
How can older people’s relationships be better supported?
What challenges does ageing present to relationships?
How do care responsibilities effect relationships?
What are the potential ramifications of older couples separating?
Many older people have equity tied up in their homes that could be used to provide them with a greater income in later life and improve their standard of living. Traditionally, the ways to unlock the equity in people’s homes have been through downsizing, equity release lifetime loans or home reversion plans. However, not everyone is in a position to downsize, there are pros and cons to each approach, and all have associated costs.
The Equity Bank would provide a new way for people to unlock the equity in their home. It would be a state agency which provides people with a low cost fixed lifetime income in exchange for a fixed share of the equity in their home. The Equity Bank would take a charge on the person’s home and recover the value of the equity from the person’s estate after their death.
The event was chaired by Baroness Sally Greengross, Chief Executive of the ILC-UK. Nick Kirwan, Director of the ILC-UK Care Funding Advice Network, opened the discussion. Professor Les Mayhew of Cass Business School and co-author of the paper 'The UK Equity Bank - Towards income security in old age' thened present the concept, after which Paul Burstow MP responded. There was then time for questions and a general discussion.
Throughout 2014, ILC-UK, supported by specialist insurance company, Partnership Assurance Group plc, is undertaking a series of events to explore the relationship between our changing demography and public policy.
The fourth event in this 'Population Patterns Seminar Series' considered the findings of our ‘Factpack’ of UK demographic statistics.
We all know that people are living longer but how is that likely to change our society? How will pensions be affected? How will we care for our growing older society when the traditional “working age” population is shrinking?
These types of debates are increasingly being played out in the media and in political circles but in order for such debates to be productive, they have to be well informed.
ILC-UK believes its 2014 ‘Factpack’ will support this process by highlighting the most recent evidence of our rapidly ageing society. Not only does it provide statistics on a range of critical topics from life expectancy to housing supply; and pensions to long-term care, it also includes a special focus on the current and potential future state of pensioner poverty.
The event was chaired by Baroness Sally Greengross (ILC-UK) with a welcome from Steve Haberman (Dean of the Cass Business School). We were delighted that Gregg McClymont MP, Shadow Minister (Work and Pensions), spoke at at the launch event. We also heard presentations from Professor Les Mayhew (Professor of Statistics, Cass Business School), Steve Groves (Chief Executive of Partnership), Ben Franklin (Research Fellow at ILC-UK) and a response from Tom Younger of the Department for Work and Pensions.
During the discussion we explored:
How the UK’s demography has changed since the release of the 2013 Factpack and how it might change in the future,
How demographic change is reshaping our society,
The challenge of pensioner poverty,
Regional variations in the experiences of older people,
How policy makers should respond to these findings.
Agenda
16:00 - 16:30 Registration
16:30 - 16:35 Welcome by Chair, Baroness Sally Greengross (ILC-UK)
16:35 - 16:40 Welcome by the Dean of Cass Business School, Professor Stete Habberman
16:40 - 16:50 Presentation from Richard Willets (Partnership)
16:50 - 17:10 Presentation from Gregg McClymont MP (Shadow Minister for Work and Pensions)
17:10 - 17:20 Presentation from Ben Franklin (ILC-UK)
17:20 - 17:30 Presentation from Professor Les Mayhew (Cass Business School) Presentation
17:30 - 17:35 Response from Tom Younger (Department for Work and Pensions)
17:35 - 18:25 Discussion/Q&A
18:25 - 18:30 Close by Chair, Baroness Sally Greengross (ILC-UK)
18:30 - 19:15 Drinks reception
The end of the beginning: Private defined benefit pensions and the new normalILC- UK
Held on Wednesday, 18th January 2017 in the House of Lords, this event launched the ILC-UK report 'The end of the beginning? Private defined benefit pensions and the new normal'.
Debt and problem debt among older people 4june13 - presentationILC- UK
Debt is commonly assumed to be a problem of the young and not of the old. New research carried out by ILC-UK and supported by Age UK examines the validity of this assumption and sets out the extent to which debt impacts on the lives of older people.
Over recent years, older people, in common with other age groups, have faced significant financial challenges. For older people, lower than expected returns on savings and decreases in annuity rates have reduced the income many retirees were expecting in later life. Increases in energy and food costs are also hitting older people on fixed incomes hard, while older workers are faced with unprecedented job and income insecurity. Could these new challenges have influenced the attitudes and behaviours of older people towards credit usage? And just how accurate are cosy depictions of older people as ‘squirreling savers shunning credit’ compared to the reality?
This new research explores the way in which attitudes towards borrowing vary by age before presenting new findings on levels of problem debt among older people. The characteristics associated with entering problem debt are explored in this research, as well as the outcomes of living with problem debt on the lives of older people.
Dr Dylan Kneale, Head of Research at ILC-UK, presented the findings of the research. Dr Stella Creasy MP, known for her parliamentary work around the field of debt, was a keynote speaker, while Sally West, Income and Poverty Strategy Adviser at Age UK, provided insight into the organisation’s work in providing debt counselling and advice for older people. Tom Wright, Chief Executive of Age UK, and Baroness Sally Greengross, Chief executive of ILC-UK, co-chaired the event and all took part in a panel debate after presentations.
When it comes to planning for retirement, the earlier you start, the more potential your money has to grow. Retirement planning is not simply about paying regularly into your pension and forgetting about it. Instead, it is essential to review your progress against your retirement goals and take account of changes that may affect your plans. For more information visit https://www.tudorfranklin.co.uk
Should we forget about ‘the older consumer’? An expert roundtable on market s...ILC- UK
In an ageing society, understanding and engaging with ‘the older consumer’ is of pressing interest for businesses who want to realise the potential of the market. But it is not an easy market to understand or describe.
A key issue to be addressed by marketers is to avoid a homogenisation of older people. The diversity of consumer spending of this group is often lost in ageist perceptions of ‘what older people want’. Despite this however, it remains to be seen if the commonalities of ageing – such as wealth depletion and physiological changes – nudge older people to gravitate to a norm.
In Dec 2010, ILC-UK and the Personal Finance Resource Centre (PFRC) at the University of Bristol published a report which explored what and how older people spent their income (Consumption Patterns Among Older Consumers). The evidence from this report fed into the ILC-UK report for Age UK on older consumers (The Golden Economy).
ILC-UK and PFRC have teamed up again to further explore issues around consumption and old age, funded by the Economic and Social Research Council Secondary Data Analysis Initiative. At this seminar we presented new evidence which explores patterns of expenditure among older people and considers what explains these.
During the seminar we:
Considered how our spending varies as we age, including setting out average and overall spending by age group;
Segmented older households based on their patterns of expenditure;
Considered the validity of a single ‘older consumer’ model.
27Mar14 - Community Matters Semiar Series - At Home - ppt presentation ILC- UK
The slides from the second in a series of three seminars from ILC-UK and Age UK on Community Matters - are our communities ready for ageing?
Full details here: http://www.ilcuk.org.uk/index.php/events/community_matters_are_our_communities_ready_for_ageing._at_home
Generational Retirement Trends Study - 2015T. Rowe Price
T. Rowe Price's recent Retirement Saving & Spending Study revealed that across groups of 401(k) savers, millennials are following better financial habits than those of baby boomers.
“We think it’s encouraging that millennials are so receptive to saving for retirement and that they are generally practicing good financial habits,” says Anne Coveney, senior manager of Retirement Thought Leadership at T. Rowe Price who led this research study. “When they have the means to do the right thing, it appears that they often do.’
Throughout this presentation, we uncover how different generational workers are saving and spending, and indentify the statistics that differentiate these populations.
Efficiency versus insurance: The role for capital income taxation in social s...GRAPE
We study the interactions between capital income tax and social security in the context of longevity. On the one hand, taxing capital income gains reduces capital accumulation and slows down economic progress. On the other hand, increasing life expectancy raises incentives for capital accumulation, which makes capital relatively less responsive to the tax hikes. Under longevity, reforming social security from a defined benefit system to a defined contribution system limits the extent of fiscal imbalance in the long run, thus further raising efficiency.
The existing view in the literature states that the insurance motive dominates the efficiency gains when evaluating the welfare effects of social security reform with stochastic income shocks. We show, under plausible calibration of the US economy, that the efficiency gain resulting from the interaction of social security and capital income taxation in the context of longevity provide welfare gains sufficient to outweigh the loss of insurance. By analyzing a variety of fiscal closures, we reconcile our result with the earlier literature. We also study the political economy context and show that political support for capital income taxation is feasible.
[ARCHIVE] Aviva Real Retirement Report Summer 2012Aviva plc
The focus for the Summer 2012 Real Retirement Report is the transition between employment and retirement. What role do employers play? What role do employees want them to play? What type of help is expected?
The end of the beginning: Private defined benefit pensions and the new normalILC- UK
Held on Wednesday, 18th January 2017 in the House of Lords, this event launched the ILC-UK report 'The end of the beginning? Private defined benefit pensions and the new normal'.
Debt and problem debt among older people 4june13 - presentationILC- UK
Debt is commonly assumed to be a problem of the young and not of the old. New research carried out by ILC-UK and supported by Age UK examines the validity of this assumption and sets out the extent to which debt impacts on the lives of older people.
Over recent years, older people, in common with other age groups, have faced significant financial challenges. For older people, lower than expected returns on savings and decreases in annuity rates have reduced the income many retirees were expecting in later life. Increases in energy and food costs are also hitting older people on fixed incomes hard, while older workers are faced with unprecedented job and income insecurity. Could these new challenges have influenced the attitudes and behaviours of older people towards credit usage? And just how accurate are cosy depictions of older people as ‘squirreling savers shunning credit’ compared to the reality?
This new research explores the way in which attitudes towards borrowing vary by age before presenting new findings on levels of problem debt among older people. The characteristics associated with entering problem debt are explored in this research, as well as the outcomes of living with problem debt on the lives of older people.
Dr Dylan Kneale, Head of Research at ILC-UK, presented the findings of the research. Dr Stella Creasy MP, known for her parliamentary work around the field of debt, was a keynote speaker, while Sally West, Income and Poverty Strategy Adviser at Age UK, provided insight into the organisation’s work in providing debt counselling and advice for older people. Tom Wright, Chief Executive of Age UK, and Baroness Sally Greengross, Chief executive of ILC-UK, co-chaired the event and all took part in a panel debate after presentations.
When it comes to planning for retirement, the earlier you start, the more potential your money has to grow. Retirement planning is not simply about paying regularly into your pension and forgetting about it. Instead, it is essential to review your progress against your retirement goals and take account of changes that may affect your plans. For more information visit https://www.tudorfranklin.co.uk
Should we forget about ‘the older consumer’? An expert roundtable on market s...ILC- UK
In an ageing society, understanding and engaging with ‘the older consumer’ is of pressing interest for businesses who want to realise the potential of the market. But it is not an easy market to understand or describe.
A key issue to be addressed by marketers is to avoid a homogenisation of older people. The diversity of consumer spending of this group is often lost in ageist perceptions of ‘what older people want’. Despite this however, it remains to be seen if the commonalities of ageing – such as wealth depletion and physiological changes – nudge older people to gravitate to a norm.
In Dec 2010, ILC-UK and the Personal Finance Resource Centre (PFRC) at the University of Bristol published a report which explored what and how older people spent their income (Consumption Patterns Among Older Consumers). The evidence from this report fed into the ILC-UK report for Age UK on older consumers (The Golden Economy).
ILC-UK and PFRC have teamed up again to further explore issues around consumption and old age, funded by the Economic and Social Research Council Secondary Data Analysis Initiative. At this seminar we presented new evidence which explores patterns of expenditure among older people and considers what explains these.
During the seminar we:
Considered how our spending varies as we age, including setting out average and overall spending by age group;
Segmented older households based on their patterns of expenditure;
Considered the validity of a single ‘older consumer’ model.
27Mar14 - Community Matters Semiar Series - At Home - ppt presentation ILC- UK
The slides from the second in a series of three seminars from ILC-UK and Age UK on Community Matters - are our communities ready for ageing?
Full details here: http://www.ilcuk.org.uk/index.php/events/community_matters_are_our_communities_ready_for_ageing._at_home
Generational Retirement Trends Study - 2015T. Rowe Price
T. Rowe Price's recent Retirement Saving & Spending Study revealed that across groups of 401(k) savers, millennials are following better financial habits than those of baby boomers.
“We think it’s encouraging that millennials are so receptive to saving for retirement and that they are generally practicing good financial habits,” says Anne Coveney, senior manager of Retirement Thought Leadership at T. Rowe Price who led this research study. “When they have the means to do the right thing, it appears that they often do.’
Throughout this presentation, we uncover how different generational workers are saving and spending, and indentify the statistics that differentiate these populations.
Efficiency versus insurance: The role for capital income taxation in social s...GRAPE
We study the interactions between capital income tax and social security in the context of longevity. On the one hand, taxing capital income gains reduces capital accumulation and slows down economic progress. On the other hand, increasing life expectancy raises incentives for capital accumulation, which makes capital relatively less responsive to the tax hikes. Under longevity, reforming social security from a defined benefit system to a defined contribution system limits the extent of fiscal imbalance in the long run, thus further raising efficiency.
The existing view in the literature states that the insurance motive dominates the efficiency gains when evaluating the welfare effects of social security reform with stochastic income shocks. We show, under plausible calibration of the US economy, that the efficiency gain resulting from the interaction of social security and capital income taxation in the context of longevity provide welfare gains sufficient to outweigh the loss of insurance. By analyzing a variety of fiscal closures, we reconcile our result with the earlier literature. We also study the political economy context and show that political support for capital income taxation is feasible.
[ARCHIVE] Aviva Real Retirement Report Summer 2012Aviva plc
The focus for the Summer 2012 Real Retirement Report is the transition between employment and retirement. What role do employers play? What role do employees want them to play? What type of help is expected?
"If only I had"... LV= insights into retirement planning webinarILC- UK
As part of this debate LV= shares the findings from their quarterly Wealth and Wellbeing research programme, which surveys a nationally representative sample of 4,000 adults across the UK on a variety of topics, including their changing attitude to their finances and their wider wellbeing.
Actuary Steve Vernon, retirement expert, Fellow of the Society of Actuaries and president of Rest-of-Life Communications, provides his recommendations regarding the current state of retirement and what individuals, employers and plan sponsors should do to prepare for retirement. For more information, visit www.restoflife.com
Making your money last in retirement - Aviva's longevity reportAviva plc
In our making your money last in retirement special report we compare and consider consumer attitudes to the facts about longevity, and make some clear recommendations about how the government and the industry must respond.
Making your money last in retirement - Aviva's longevity reportAviva plc
In our making your money last in retirement special report we compare and consider consumer attitudes to the facts about longevity, and make some clear recommendations about how the government and the industry must respond.
We are pleased to share this month's edition of the IBB Wealth Magazine. An interesting and helpful read in the current economic climate, covering topics such as pensions, retirement and investments.
Findings from our latest Snapshots survey are now available. ‘Money Matters’ looks at how optimistic UK consumers feel about their financial situation in 2015, and compares this with results from the previous four surveys.
The Aviva Real Retirement Report - Spring 2014Aviva plc
Aviva's Spring 2014 Real Retirement Report explores over-55s' views on retirement and what role their family plays in their plans. Findings from the consumer research shows that for over-55s retirement is a period of pursuing personal interests, hobbies and travel. However, family is important, and they particularly want to spend more time with family members. But many over-55s are over-looking their spouse and their family when they come to plan their retirement finances, and consider their finances a personal matter. This reluctance to involve the family also affects the number of people preparing a will.
This report lets you see for yourself what others
think and feel about their retirement. I hope it will
also encourage some readers to take more control
of their own financial future. The ability to shape your
retirement is in your own hands with the power
of planning.
Aviva is improving its annuity offering as part of its calls to industry within the Rethinking Retirement Report 2013, by extending its guarantees and offering an increased value protection period.
Aviva first published Rethinking Retirement in the UK in 2011 to highlight the financial challenges facing retirees and set out a series of changes it believed were vital to help them. These included a call for the industry to publish annuity rates. Since the report’s launch, the industry has taken note and we have seen it take great strides forward through new developments such as the Association of British Insurers’ (ABI) Code of Conduct.
Although symptoms can vary widely, the first problem many people notice is forgetfulness severe enough to affect their ability to function at home or at work or to enjoy lifelong hobbies.
Inflation drop gives over-55s an extra £1,032 a year in disposable income as ...Aviva plc
Falling inflation has given over-55s back their financial freedom and boosted saving habits as essential spending has fallen by 7% in a year, according to research from Aviva.
Similar to [ARCHIVE] Aviva Real Retirement report, March 2012 (20)
Aviva announced its 2018 Interim Results this presentation outlines the headlines.
"Aviva has grown operating earnings per share by 4% and increased the dividend by 10%. The 10% increase in the interim dividend is our fourth consecutive half-year of double digit dividend growth and further proof of Aviva’s progress. During these choppy market conditions, it is reassuring that Aviva’s results are consistent, dependable and growing. Aviva remains financially strong with a capital surplus of £11 billion. In the first half of 2018, we started a £600 million share buy-back and paid off €500 million of expensive debt. We remain on track to achieve our financial targets." - Mark Wilson, Group Chief Executive Officer
Full detail can be found here: in.aviva.com/2Kd7Gdq
“After three years of turnaround we are now moving to a different phase of delivery. We have improved the balance sheet, simplified the Group and we are now transforming our business. The progress is evident in these results.
“The Friends Life integration is ahead of schedule and we have delivered £63 million of run-rate synergies after three months. This is encouraging but nowhere near complete. Amidst the integration, our UK Life business continued to grow, with value of new business up 31% excluding Friends Life.
“In general insurance, premiums and operating profits were higher. The combined ratio was 93.1%, the best in eight years, and underwriting profits increased 45%.
“The 15% increase in the dividend is a further step towards achieving our target payout ratio and underlines our confidence in our cash flow and the business.”
Infographic outlining Aviva's five carbon investment commitments responding to climate risk and the need to limit global temperature increases to within 2 degrees C
Aviva plc First Quarter 2015 Interim Management Statement Aviva plc
Mark Wilson, Group Chief Executive Officer, said:
“Aviva’s turnaround is on track and ahead of schedule. It’s been a busy quarter. We have completed the acquisition of Friends Life and at the same time delivered an improvement in our key metrics. Value of new business is up, our general insurance combined operating ratio has improved and our IFRS book value has grown over the quarter. In the face of unpredictable global markets, we continue to improve the Group’s resilience.
“Detailed plans to integrate Friends Life are well underway and whilst this is a challenging and complex project, we are confident of timely progress. We expect 2015 to be a year of continued delivery of our turnaround plan.”
Aviva's biannual UK Family Finances report (December 2014) reveals that:
> UK parents of 0-5s juggle earnings with childcare expenses
> 1 in 10 families using childcare for 0-5s say lower earner takes home nothing after childcare / work costs are paid
> Lower earner typically brings home just £243 after childcare / work costs are paid
> One in three families using childcare for 0-5s turn to grandparents
> Working parents are being hamstrung by childcare costs, with thousands effectively working for nothing, Aviva can reveal.
The company’s Winter 2014 Family Finances Report also reveals that one in 10 families paying childcare costs for youngsters aged 0-5, effectively see one earner bring home nothing from his or her job after childcare and work costs are taken into account.
Similarly one in four families in this position has one parent who brings home less than £100 a month after costs.
Find out more in the full report.
Infographics and quotagraphics to accompany this report are available on Flickr at https://www.flickr.com/photos/avivaplc/
#FamilyFinances
Aviva plc Third Quarter 2014 Interim Management StatementAviva plc
Mark Wilson, Group Chief Executive Officer, said:
“Aviva’s turnaround is delivering. Our key metrics have improved again. Year to date, our net asset value is 10% higher; value of new business is up 15%1 and the general insurance combined ratio improved to 95.9%.
“The steps we have taken to focus and strengthen the Group mean we are in a different position to two years ago.
“Notwithstanding this progress, there is still more to do before we can be satisfied we are fully delivering on our investment thesis of cash flow plus growth.”
Mark Wilson, Group Chief Executive Officer, said:
“The half year results show that momentum in Aviva’s turnaround continues. All of our key metrics have improved, operating earnings per share are up 16%, and book value has increased 7%.
“We have reduced our debt, decreased expenses and increased profit – this is just good business. Aviva remains a work in progress, and these results are a step in the right direction.”
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
2. Foreword
Welcome to Aviva’s Spring Real Retirement Report. We have been tracking the concerns and finances of the three
distinctive ages of retirement – pre-retiree (aged 55-64), retiring (65-74) and long-term retired (over 75) for over two
years now and have found a number of distinctive trends emerging.
Each quarter we look at an area of particular concern to this age group with the focus for Spring 2012 on intra-family
financial support. How do the over-55s support their families financially? Who do they support the most? What impact
does this have on them personally? And is there evidence of a growing trend towards supporting their wider friends
and family too?
This Report found that 41% of over-55s had provided their families and friends with financial support over the last
year, and the majority of those who had not would step up to this challenge if they were asked. In addition, 46% of
over-55s had provided their families with non-financial support over the last year – generally in the form of transport,
odd jobs or child care.
Overall, the UK’s over-55s are better off financially this Spring as we saw inflation fall from 5.4% (Dec 2011) to 4.05%
(March 2012) and the average monthly income rise to £1,303 (March 2012) from £1,285 (Dec 2011). We also saw
savings pots increase by 24% from £11,427 (March 2011) to £14,198 (March 2012). These statistics are a positive sign
and suggest that the over-55s are adapting their finances to current market conditions.
Typical monthly savings amounts rose to £39.97 (March 2012) from £27.24 (March 2011) – the highest level since the
Real Retirement Report started tracking this indicator in January 2010. However, while this is good news, the number
of non-savers rose to 40% (March 2012) from 36% (Dec 2011) – revealing a hardcore of those who either don’t want
to or simply can’t save on a regular basis.
The proportion of 55-64s with a mortgage rose to 30% (March 2012) from 29% (March
2011) and 26% (March 2010). Unsecured borrowing also rose to £24,827 (March 2012)
from £19,878 (March 2011) as some people continued to use credit to facilitate their
spending.
In the Spring 2012 edition of the Real Retirement Report, we introduce the ‘Over-55’s
Financial Fears Index’. This index uses 12 separate indicators to track how this group sees
the prospects for their short-term (six months) and long-term (five years) financial future
and reveals that – ahead of the budget – this group is increasingly worried.
Clive Bolton, ‘at-retirement’ director at Aviva
Aviva Real Retirement Report 2
3. The three ages of retirement
The Aviva Real Retirement Report considers retirement as three
stages to reflect the fact that ‘retirement’ changes as people get
older, rather than simply being a single event.
l Pre-retirees – (55 to 64 years old) are on the countdown to retirement but 30% still have outstanding
mortgages (£63,796 – average outstanding balance) and 17% have unsecured debts (£20,599 – average
outstanding balance). Despite moving towards the end of their careers, 26% have savings of less than
£500 and 43% are not saving anything each month.
l Retiring – (65 to 74 years old) have just passed the age at which people generally retire and while 20%
still count wages or an earned income as one of the sources of their monthly income, many are looking to
relax after a long working life. However, retiring may come as a shock to some as 14% have no savings
and 11% still have an outstanding mortgage to pay off.
l Long-term retired – (75 years and older) most are 10 years or more into retirement. Those with private
pensions (36%) or employee pensions (52%) are likely to have annuitised. While 74% own their homes
outright, 8% are still paying off a mortgage. Furthermore, although they have the lowest average debt
held by the three age groups, those that do have unsecured debts owe a sizeable amount (£20,487).
Population trends
0.13
0.12
0.11
55-64
% of population
0.1
65-74
0.09 75+
0.08
0.07
0.06
0.05
1986 1996 2003 2005 2007 2016 2026
Years
Aviva Real Retirement Report 3
4. The Age of Generosity – the cost
of supporting family and friends
l 1% of over-55s have helped their families and friends out over the last
4
year and more say they would help in the future. Typical financial assistance
is 9% (£1,430) of annual income (£15,636)
l ain reason for help was the need to help pay bills (31%), topping up
M
income (17%) and paying for one off costs (17%)
l ncouragingly, 46% of over-55s have utilised their free time and skills to help
E
their families and friends out with non-financial support over the last year
In the last couple of years the rising cost of living has had an impact on everyone. However its effect has been felt most keenly by
the young – struggling with unemployment and seemingly unattainable life goals – and the older generation – faced with lower
annuity rates as they look to maintain their lifestyle on a fixed income.
This has meant an increasing amount of people are turning towards their family for assistance, and Spring’s Real Retirement Report
looks at the scale of this issue and what impact it has had on the UK’s over-55s.
The Real Retirement Report found that 41% (March 2012) of over-55s had provided financial assistance to family or friends over
the last 12-months. This means on average over-55s spent 9% of their monthly income (£119 - March) or £1,430 (March 2012)
annually on providing their family with financial assistance. The retiring (£1,622 – March 2012) provided the most help followed by
the pre-retirees (£1,369 – March 2012) and the long-term retired (£1,025 – March 2012)
While some people had not assisted their families financially, this appears to be due to lack of necessity rather than desire. Of those
who had not helped their families over the last year, 51% (March 2012) said they would be happy to help their adult children, 39%
(March 2012) their grandchildren and 23% (March 2012) their parents. This is perhaps an indication of how much financial pressure
young people are under compared to the long-term retired. The current generation of over-75s may be better insulated from the
current financial crisis than their grandchildren. However, it will be interesting to monitor whether this changes over time as more
people move into the long-term retired bracket who are still saddled with debts and lacking the savings and pension provision to
maintain even a basic lifestyle.
Boomerang generation:
Adult children (23%) and grandchildren (13%) were the groups most likely to receive some form of financial help from the older
generation. The retiring (65 - 74) are most likely to have helped out their adult children in the last 12 months (28% – March 2012)
as they are less likely to have grandchildren who are old enough to require financial help. Indeed their children are likely to be of the
generation that are still starting out on their career, paying off debts, and finding not only is mortgage financing out of reach but
rental costs are an increasingly significant part of their monthly income.
However, it is significant that 20% of the long-term retired (over-75s) have also given financial assistance to their children in the last
year, as they are more likely to have children aged in their 30s and 40s. This demonstrates just how hard some families are finding it
to make ends meet in this difficult economic climate.
This is further substantiated when looking at what the financial aid is being used for, as the largest single reason given was not for
gifts and luxuries, but essential items that people cannot live without. In fact the main reason for providing financial assistance is to
help pay off debts/bills (31%) followed by paying for a one off cost like a rental deposit (17%) and topping up their income as they
don’t earn enough (17%).
Aviva Real Retirement Report 4
5. Main reasons for providing financial assistance:
Over-55 55- 64 65-74 Over-75
To help pay off debts / bills 31% 34% 30% 21%
A one off cost such as a buying a new appliance or paying a rental deposit 17% 15% 18% 24%
Regularly top up their income as they don’t earn enough to survive 17% 19% 15% 12%
They were unemployed and needed help 16% 13% 19% 21%
Pay for one off occasion such as a wedding 15% 14% 18% 6%
It is interesting to note that the long-term retired (over-75) are more likely to help with immediate chronic needs such as when
people are unemployed (21% – March 2012) but less likely to regularly top up income (12% – March 2012) or pay for a one off
expense such as a wedding (6% – March 2012). This is likely to reflect their financial status and the age of their children, as their
children are more likely to be in their 30s and 40s and have built up their own lifestyle and family which could be threatened by
unemployment. Gifting their precious capital to help with an emergency is perhaps seen as more beneficial than helping with
non-essential items if it means leaving them worse off.
Pressure from all sides:
There are also financial demands from the over-55’s ageing
parents with 2% (March 2012) of pre-retirees saying they have
supplied an average of £3,280 (March 2012) to their parents
over the last year. Of those who have provided financial support,
4% (March 2012) of over-55s said they had had to pay for care
costs/support and 2% (March 2012) said they were providing a
financial top up as their parents needed a boost to their income.
Spousal support:
A further 2% (March 2012) of over-55s have helped out their
friends financially, but even closer to home is when one half of a
couple needs support. Typically, this will be given unconditionally
as it will form part of a larger ‘pot’, but the Real Retirement
Report has found that in almost half (46%– March 2012) of
relationships among over-55s one partner typically has far more
pension provision than the other.
Impact of giving:
While people naturally want to help their families, giving does
have an effect on some people’s finances. In fact, 75% (March
2012) said that providing financial support impacted on their
personal finances.
Over a third (37% – March 2012) of over-55s said providing this
help had meant they had to dip into their capital and now have
less in savings/investments than before and almost a quarter
(23% – March 2012) said they had less to spend on day-to-day
expenses.
Aviva Real Retirement Report 5
6. Impact of giving on over-55s finances:
Over-55 55- 64 65-74 Over-75
I had to dip into my capital and now have less (in savings/investments) than before 37% 36% 41% 27%
I used my income so had less to spend 23% 21% 22% 39%
I put less into savings 22% 23% 22% 18%
I put less into investments 6% 6% 6% 12%
I put less into my pension 3% 4% 2% 0%
Those most affected by providing financial support are the retiring (64-75) with 41% (March 2012) saying it meant they had to dip
into their retirement capital. While the long-term retired were most likely to say they had used money from their income to provide
assistance (39% – March 2012), 18% (March – 2012) said it meant they couldn’t put as much money into their savings and 12%
(March 2012) said it meant they couldn’t put as much money into their investments as before.
This suggests that while the over-75s were not dipping into their capital they had lost out on what they could have gained
from investing the money themselves. With longevity data showing people are living longer than ever before this could have
consequences further down the line.
Non-financial support:
Over-55s have traditionally been at the heart of the family structure – providing support for a variety of generations. The Real
Retirement Report shows that this remains a big part of family life with 46% (March 2012) of over-55s providing some form of
non-financial help.
The group they are most likely to provide with non-financial help is adult children living away from home (23% - March 2012)
followed by grandchildren (16% – March 2012), friends (11% – March 2012) and their parents (9% – March 2012).
The most common type of non-financial assistance provided in the last year was helping out with transport needs (41% - March
2012), followed by providing general help around the home such as odd jobs (35% - March 2012) and providing childcare
(34% - March 2012).
The impact of providing support:
While people obviously make their own decisions about whether or not they wish to provide support, it can have an impact on their
own lives. As such, 6% (March 2012) of over-55s said the provision of support (both financial and non-financial) had meant they
had had to delay retiring, 4% (March 2012) had retired early to look after older family members, and 2% (March 2012) went back
to work part-time to generate/replace lost income.
Aviva Real Retirement Report 6
7. “Few people would refuse to help out their friends and family if they came to
them asking for help, whether this was financial or otherwise. However, the times
in which we are living are increasingly likely to have an impact on family finances.
This clearly illustrates the point that saving as much as possible for retirement is vital
as people don’t want to have to choose between helping their own families and
maintaining their own standard of living.”
Clive Bolton, ‘at-retirement’ director at Aviva
Aviva Real Retirement Report 7
9. Economic Overview:
l ver-55s RPI (4.05%) vs. all UK (3.9%)
O
The over-55s RPI fell from 5.4% (Dec 2011) to 4.05% (March 2012) which is likely to be a relief for many of those on fixed
incomes.
Over-55 RPI vs. all RPI Jan 2010
0.06%
0.05%
0.04%
% change
RPI over 55s
0.03%
RPI all
0.02%
0.01%
0.00%
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
Month
On another positive note, some of the ‘basic’ expenses that the majority of households would expect to pay have fallen significantly.
The rate of inflation of fuel and light has slowed from 20.21% (Dec 2011) to 14.93% (March 2012) and the rate for food has
slowed from 5.75% (Dec 2011) to 3.95% (March 2012).
There was only one item in the over-55s ‘shopping basket’ which bucked the trend. The cost of housing rose marginally from
1.20% (Dec 2011) to 1.29% (March 2012) but this is likely to have less of an impact on this age group as 60% (March 2012) have
a home that they own outright.
Age group inflation:
While over-55s as a group experienced RPI inflation of 4.05% (March 2012), within the three ages of retirement inflation is at
different levels, climbing as people age: 3.98% (55-64), 4.14% (65-74) and 4.34% (over-75).
Thus, the group with the lowest median income (£1,221 – over 75s – March 2012) experienced the highest level of inflation so they
are likely to have found that their income continues to be most stretched out of all the groups.
This is due to the fact that they spend proportionally more of their income on costs which are subject to high inflation such as fuel
and light (+14.93% – March 2012) and clothing and footwear (10.88% – March 2012).
Aviva Real Retirement Report 9
10. Income
l he median monthly income of the over-55s rose to £1,303 (March 2012)
T
from £1,285 (Dec 2011). This is the highest level since November 2010
(£1,335).
l ver-55’s largest sources of income are the State pension (59%), employer
O
pension (37%), wages/other earned income (37%), personal pension
(35%) and investments/savings (25%)
To provide a true picture of the over-55’s finances, the Real Retirement Report looks at not only the impact of inflation but also the
level of income, sources of income and how this income is spent.
Level of income:
The median income of the over-55s rose marginally to £1,303 (March 2012) from £1,285 (Dec 2011). This is the highest level since
November 2010 (£1,335) and is up 5% since the same time last year (March 2011 – £1,240).
The over-75s saw their income increase slightly from £1,125 (Dec 2011) to £1,129 (March 2012) and 55-64s also saw an increase
from £1,271 (Dec 2011) to £1,327 (March 2012). However, 65-74s saw their income fall from £1,388 (Dec 2011) to £1,318 (March
2012).
Employment appears to be the key to this increase as there have been more 55-64s and over-75s in employment over the last year
while the number of 65-74s in employment has fallen marginally.
Percentage of over-55s who derive income from wage/paid employment:
Over-55s 55 – 64 65-74 Over-75
March 2011 36% 54% 21% 6%
March 2012 37% 57% 20% 8%
However, while the over-75s have seen an increase in their median income, they remain the age group with the lowest overall
level of monthly income (£1,129 – March 2012). While admittedly, the majority of them (74% – March 2011) have paid off their
mortgage so they have fewer financial burdens, they will still need to pay for other necessities so may struggle more than some
other age groups.
On average over-55 men (£1,546 – March 2012) have an income of 36% more than women (£1,137 – March 2012). This general
trend has been constant since the launch of the first Real Retirement Report at the start of 2010 and highlights the importance of
making adequate individual pension provision.
Income bands:
In March 2012, 19% of over-55s live on less than £750 per month and 18% have an income of more than £2,500. It is interesting
to note that over the last year, fewer people have an income of less than £750 (19% - March 2012 vs. 20% – March 2011) and
fewer people earn more than £2,500 (18% - March 2012 vs. 19% – March 2011). These are small changes but it does seem to
indicate that social welfare is helping the poorest over-55s while the comparatively wealthy are losing ground.
Income sources:
The State pension (59% – March 2012) is the most significant source of income for the UK’s over-55s – rising from providing part of
their monthly income for 93% of 65-74 year-olds, and rising to 96% of over-75s. This level is marginally lower than in March 2011
(61%) which is likely to reflect the changes to the State retirement age and – due to Age Discrimination Legislation – some people
choosing to delay taking their pension as they are still working.
Aviva Real Retirement Report 10
11. Following this, employer pensions (37% – March 2012) and wages (37% – March 2012) come in as the second most common sources of
over-55s income. It is interesting to note that the percentage of over-55s who benefit from a company pension has dropped from 45% (March
2010) to 38% (March 2011) to 37% (March 2012).
Percentage Of Over-55s who derive an income from an employer pension:
Over-55s 55 – 64 65-74 Over-75
March 2010 45% 39% 51% 51%
March 2011 38% 30% 43% 53%
March 2012 37% 27% 46% 52%
Indeed, it appears that while some over-55s have benefitted from generous DB (defined benefit) or excellent DC (defined
contribution) pension schemes, others do not and their finances are suffering as a result.
“There is a widespread belief that today’s over-55s have all received generous
pensions from former employers. However, these figures show that this is clearly
not the case. Over half of today’s retiring (65 – 74) do not derive an income from
this source. Auto-enrolment will go a long way towards improving this situation
but these statistics clearly illustrate the importance of individuals taking their own
positive steps in retirement planning.”
Clive Bolton, ‘at-retirement director’ for Aviva
Savings and investment income remains stable:
Another significant source of income for the over-55s is savings and investments (25% – March 2012). In March 2010, 30% of
over-55s derived an income from savings/investments but this dropped to 25% (March 2011) and remains the same in March 2012
(25%).
On a quarter by quarter basis, we saw the number of people who derived an income from savings and investments fall from 28%
(Dec 2011) to 25% (March 2012). It appears that the UK’s over-55s are working to find ways in which to maximise their savings
and investment returns – rather than dipping into the capital.
Other significant sources of income:
Following the income sources listed above, 35% (March 2012) of over-55s also receive an income from a personal pension, 15%
(March 2012) from benefits and 4% (March 2012) from the rental of property.
The number of over-55s who derive an income from benefits has fallen from 21% (March 2011) to 15% (March 2012). As we find
that there are fewer under-55s whose income is below £750, this seems to show that changes to universal benefits have hit this age
group but not those most in need.
The income derived from property is also particularly interesting as 11% (March 2012) claim to own a second property but only 4%
(March 2012) derive an income from it. This leads us to the conclusion that some people own holiday homes, still have significant
buy-to-let mortgages where rental yields either meet or are less than mortgage interest payments or have family/friends living rent-
free in their second properties.
Aviva Real Retirement Report 11
12. Expenditure
l op expenses of the over -55s remain steady but proportional spend shifts
T
While many over-55s have different spending patterns to the typical UK consumer, they still have regular expenses that they need to
meet. In March 2012, the largest single expense is housing (23%) followed by food (15%), debt-repayments (14%), fuel and light
(9%) and entertainment/recreation/holidays (7%).
Percentage Of Income Spend On Expenses By Over-55s:
Housing Food Debt Fuel and light Entertainment
March 2011 21% 17% 11% 10% 7%
March 2012 23% 15% 14% 9% 7%
While the ‘top five’ expenses stayed the same on an annual basis, the proportion of income spent on each of the majority of
the items shifted. Spending on housing rose to 23% (March 2012) as we found an increased number of 55-64’s with a mortgage
(29% – March 2011 vs. 30% – March 2012).
Spending on food fell from 17% (March 2011) to 15% (March 2012) and spending on fuel and light fell from 10% (March 2011)
to 9% (March 2012) as inflation on these costs has started to decrease. This is excellent news for the over-75s who typically spend
more of their income on these costs than other age groups.
Percentage of monthly spend
6%
7%
26% Housing (mortgage or rent)
9% Debt repayment
Food
Fuel and Light
15% Entertainment, recreation and holidays
Motoring
23%
Other expenditure
14%
As spending on housing, food and fuel and light dropped, the UK’s over-55s increased their debt payments from 11% (March
2011) to 14% (March 2012). The number of over-55s with borrowing has fallen on an annual basis so some people are obviously
repaying borrowing. However, the amount of debt has actually increased from £19,878 (March 2011) to £24,827 (March 2012), so
while some have cleared their debt others appear to have increased their expenditure simply to keep on top of their obligations.
Each age group has a slightly differing expenses profile but housing remains the top expense for each group. It is particularly
interesting to note that although 74% of over-75s own their own homes, they still spend a sizable amount of their income on their
properties (18%). This is likely to be due to the fact that their incomes have shrunk and while they don’t have a mortgage, they still
need to maintain their properties.
Aviva Real Retirement Report 12
14. Assets
l avings pots up 24% from £11,427 (March 2011) to £14,198
S
(March 2012)
l onthly savings grow to £39.97 (March 2012) – highest level since
M
Jan 2010
l umber of pre-retirees (55-64) with mortgages steadily growing
N
Savings pots on the increase:
The typical person over-55 has savings of £14,198 (March 2012) which is 24% up on the same time last year (£11,427 – March
2011). The main impetus behind this increase appears to be the sharp increase in the savings of the 65-74s from £15,543 (March
2011) to £20,713 (March 2012).
While it is good news that they have bigger savings pots, this is likely to be due to redundancy payouts or the tax free lump sum
gained from the proceeds of buying an annuity. Over-75s saw their savings fall marginally to £14,998 (March 2012) from £14,999
(March 2011) and 55-64s saw an increase to £9,842 (March 2012) from £8,517 (March 2011).
On an annual basis, the number of over-55s who had no savings fell from 20% (March 2011) to 17% (March 2012) as more people
started to listen to the ‘saving for retirement’ messages and take positive action. However, on a quarterly basis the percentage of
over-55s people without savings rose from 15% (Dec 2011) to 17% (March 2012) as some chose to spend their nest eggs over the
festive season.
Regular savers:
With the worries of 2011 behind them, the UK’s over-55s have started 2012 with an extremely positive savings ethic. Indeed, they
are now saving £39.97 (March 2012) per month which is up on the same time last year (£27.24 – March 2011) and the highest
since the Real Retirement Report was launched in January 2010.
All age groups have shown an improvement since last quarter (Dec 2011) but the long-term retired (+£18.70 to £57.00 per month
– March 2012) and retiring (+£11.60 to £53.00 per month – March 2012) have seen the biggest shift. It is a concern to see that the
pre-retirees (+£0.61 to £28.67 – March 2012) who have the highest income (£1,327 – March 2012) save the least.
“That people are actively working to improve their savings ethic is excellent news.
However, they need to maintain this and ensure it is the one New Year’s resolution
they keep! While savers are saving more, there still appears to be a hard-core of
non-savers who either don’t have the money or the ambition to start saving so this
really needs to be addressed as quickly as possible.”
Clive Bolton, ‘at retirement’ director for Aviva.
The 55-64s also boast the highest number of non-savers (43% – March 2012) in comparison to the 65-74s (39% – March 2012)
and over-75s (36% – March 2012). The number of non-savers has jumped across all groups between December 2011 and March
2012 as people find that the festive season fall-out impacts on their savings opportunities.
Percentage of over-55s who do not save on a monthly basis:
Over-55s 55 – 64 65-74 Over-75
December 2011 36% 39% 33% 39%
March 2012 40% 43% 39% 36%
Aviva Real Retirement Report 14
15. Homeownership:
The typical over-55 year old in the UK owns a home worth £235,608 (March 2012) with a mortgage of £67,663 (March 2012), this
is 46% more valuable than the typical UK home (£160,907).
House prices across the UK vs mortgages
£450,000
£400,000
£350,000
House Price
£300,000
£250,000
£200,000
£150,000
£100,000
£50,000
£0
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Over-75s (£262,963 – March 2012) own the most expensive homes followed by the 55-64s (£234,100 – March) and the 65-74s
(£230,195). This trend has remained relatively constant since the launch of the Real Retirement Report and highlights how much of
the typical over-55s wealth is made up of housing equity.
While the majority of over-55s (60% – March 2012) own their home outright, one in five (20% – March 2012) still has a mortgage,
9% live in social housing and 8% rely on private rental accommodation. The number of over-55s with a mortgage fell by 1
percentage point between March 2011 (21%) and March 2012 (20%).
The impetus behind this move appears to be the number of 65-74s (14% – March 2011 vs. 11% – March 2012) who have repaid
their mortgage as the number of 55-64s (30% – March 2012 vs. 29% March 2011) has actually increased. The number of over-75s
with a mortgage remained stable at 8% (March 2011 and 2012).
It will be interesting to monitor the number of pre-retirees (55-64) who approach retirement with a mortgage as the tracking data
shows that this is increasing – possibly due to regular remortgaging, under-performing endowments and it taking longer to get on
the housing ladder.
Percentage of 55-64s with a mortgage:
March 2010 March 2011 March 2012
55-64s with a mortgage 26% 29% 30%
“The number of pre-retirees who are still paying off a mortgage is growing as can
be clearly seen from the data. Very few people are in a position to enter retirement
with-out this type of financial obligation, so we are likely to find that people
keep working longer or turn to other options like equity release to repay their
borrowing.”
Clive Bolton, ‘at retirement’ director for Aviva.
Aviva Real Retirement Report 15
16. Borrowing
l nsecured debt increases to £24,827 (£19,878 – March 2011)
U
l third of over-55s have a credit card – but this has fallen since this time
A
last year
The average debt held by over-55s has increased by 25% in the past year from £19,878 (March 2011) to £24,827 (March 2012).
Debt also increased by 13% over the past quarter as some members of this age group used credit to fund their festive season
purchases (£21,901 – Dec 2011).
The total debt of all over-55s with outstanding debts and a mortgage to pay off has also increased from £84,985 (March 2011) to
£92,491 (March 2012). This figure is lowest among 55-64 year olds who are more likely to still have an earned income from which
to pay off their remaining mortgage and any debts they have (£84,395). However, this increases among over-75s (£107,987) and
65-74 year olds (£114,244) whose fixed income may force them down the path of using credit to fund unplanned spending.
However, while the average debt has increased, the number of people with debts has actually fallen year on year. With the
percentage of income spend on debts increasing from 11% (March 2011) to 14% (March 2012), this shows that some over-55s are
actively looking to reduce borrowing as much as possible as they head into retirement.
Percentage of over-55s with debts (by types of borrowing):
March 2011 Dec 2011 March 2012
Credit card 42% 39% 33%
Personal loans 33% 23% 16%
Overdraft 30% 20% 16%
Hire purchase 27% 14% 11%
Storecards 28% 13% 11%
Indeed, we have seen a drop in the ‘more expensive but easily repaid’ types of borrowing. The average credit card debt has
decreased from £3,311 (March 2011) to £2,816 (March 2012) and store card borrowing from £1,220 (March 2011) to £1,051
(March 2012).
On the other end of the scale, there has been a significant increase in the amount owed to more informal lenders – such as short-
term borrowing – with the 7% (March 2012) of over-55s who use this type of credit increasing their borrowing from £613 (March
2011) to £2,226 (March 2012).
Of all the age groups, the pre-retirees (10% – March 2012) are most likely to use this type of credit followed by the long-term
retired (8% – March 2012) and the retiring (3% – March). This seems to indicate that as people retire, they are able to repay their
borrowing but they then fall back on to reliance on this type of credit as they adjust to retirement.
Fears about keeping up with debt repayments have stayed consistent over the past year with 5% worried about this over the next
six months and also the long term (next five years), down slightly from last year (6% for both periods respectively).
Aviva Real Retirement Report 16
17. Over-55 Financial Fears Index
l hort-term fears on the increase as long-term economic factors bite
S
l ver-55s less worried about unexpected expenses as other issues come
O
into focus
Since the Real Retirement Report launched in January 2010, it has tracked the views of the over-55s as to the threats to their
standard of living over the short (6 months) and long (5 years) term.
Using the data from the first Real Retirement Report as the base (100) it is possible to observe the trends over time and chart how
people have been feeling about the pressures on their finances. For full methodology behind the index, please turn to page 20 of
the report.
Short-term overview (Six months):
The index has found that since January 2010, over-55s have been getting steadily more confident about their short-term future.
However, this changed in Q2 2011 and we saw this reverse as fears of a double dip recession rocked people’s confidence and
increased their fears.
While overall the Index remains below its initial level – in terms of specific concerns – worries over the rising cost of living have never been
higher (78% – March 2012). Conversely, following the recent predictions from the Bank of England that stability and growth in the UK
are returning, over-55s are less worried about the returns on investments (22% – March 2012) than last quarter (23% – Dec 2011).
Short-term fear index
Short-term fear index 110
European Debt
less worried - more worried
Crisis Starts
100 Bank of England announces Inflation
Quantitative Easing starts to drop
Measures
90 UK unemployment
increases
80
Coalition Government Libyan uprising
comes to power
70
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
Long-term fears (Five years):
In the last two years, the Index shows that perceived threats to financial stability have generally declined. This long-term
measurement is understandably less volatile than the short-term fears as it is further into the future; however there has been an
increased level of anxiety in recent months.
Worries over the impact of increases to the cost-of living have never been higher (73% – March 2012), and the continued volatility
in Europe has contributed to concerns over falling returns on investments in the long-term which are at the highest level for two
years (23% – March 2012).
Perhaps as a result of these overarching worries, stress levels over more prosaic problems such as how they will cope with
unexpected expenses (44% – March 2010 vs. 36% – March 2012) and an inability to keep up with any debt repayments have
declined (7% – Jan 2010 vs. 5% – March 2012). Long-term fear index
Long-term fear index 110
European Debt Inflation
less worried - more worried
Crisis Starts Bank of England announces starts to drop
100
Quantitative Easing UK unemployment
Measures increases
90
80
Libyan uprising
70
Coalition Government
comes to power
60
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
Aviva Real Retirement Report 17
18. Overview of the over-55s
over the last two years
l he Real Retirement Report has charted the income, wealth and debts of the
T
UK’s over-55s since the start of 2010 and this section takes a holistic look at
how this had changed over time.
Income:
The Report has tracked the typical monthly income of the UK’s over-55s since February 2010. It reached its highest level in August
2010 (£1,361), with an increase of 9% on the previous quarter (May 2010 - £1,250). They reached their lowest point in September
2011 (£1,216) as the likely result of a surge in the number of over-50s listed as unemployed, leaping from 384,000 in May (2011)
to 409,000 in September (2011).
The typical monthly income of 55-64 year olds has followed the overall trend, as they are the age group most likely to be affected
by changes to the employment market. Meanwhile, retirees (65-74 year olds) have seen their monthly income remain at a relatively
consistent level as they start to feel the benefit of their retirement planning.
Median monthly income
£1,600
£1,500
£1,400
Income (£)
£1,300 ALL
£1,200 55 -64 (Pre-retirees)
65 - 74 (Retiring)
£1,100
Over 75 (Long-term Retired)
£1,000
£900
Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012
Date
The over-75s typically have the lowest average monthly income of all three age groups, and have also seen significant fluctuations
in the amount they receive. This is because they are most likely to be reliant upon a fixed income, and so any significant changes to
the wider economic climate or basic costs will be felt by them more keenly.
Savings
As incomes peaked in August 2010, so did the typical over-55 year old’s savings pot (£16,296). Similarly, they reached their lowest
level in September 2011 (£10,468), and generally matched the downward curve of incomes throughout this year.
However, as monthly incomes have started to increase again so have the amounts that over-55s have saved. March 2012 saw the
typical savings pot held by the over-55s reach £14,198 – a high not seen since November 2010 (£15,262).
An increase in incomes has led to a growth in confidence among over-55s in their ability to save. The typical amount saved monthly
has reached its highest level since the report was launched with the average amount put away in March (2012) standing at £40.
Aviva Real Retirement Report 18
19. Typical Monthly Savings for the Over-55s:
2010 2011 2012
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
£44 £39 £31 £27 £33 £35 £27 £27 £40
Debt:
The Real Retirement Report has tracked unsecured debt since it launched in Q1 2010 but only started to break this debt down into
its constituent parts in Q1 2011. This provides a more accurate picture of borrowing as it ensures people take all types into account.
A review of the data suggests that the level of unsecured debt held by over-55s in the UK has reached its highest level (£24,827 –
March 2012) since we started this type of tracking. Mortgage debt also hit its highest level since Q1 2011 (£67,663).
Mortgage and unsecured debtunsecured debt of Over-55s
Mortgage and
of over-55s
100000
90000
80000
70000
60000
Debt
50000
Mortgage
40000
30000
20000
10000
0
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
Aviva Real Retirement Report 19
20. Regional
overview
Average house price Average mortgage Own house outright Number of Over 55s
1 East £243,945 £57,734 54% 1,706,000
2 London £382,051 £63,461 47% 1,574,100
3 East Midlands £210,387 £76,974 62% 1,305,200
4 West Midlands £183,152 £43,750 65% 1,568,900
5 North East £208,190 £39,769 53% 765,700
6 North West £200,000 £55,917 60% 1,977,600
7 Scotland £204,844 £38,094 56% 1,512,000
8 South East £311,719 £70,733 58% 2,458,000
9 South West £288,870 £78,121 59% 1,696,900
10 Wales £196,250 £37,500 70% 938,100
11 Yorkshire £162,333 £51,042 61% 1,475,100
UK £238,284 £58,947 59% 16,977,600
Aviva Real Retirement Report 20
21. So what does this tell us?
This edition of the Real Retirement Report takes another look at over-55s finances and focuses a spotlight on the issues around
intra-family financial support and that provided to friends too. How much assistance do people continue to provide their
families with as they count-down to retirement? What impact does this have on their finances? How is this generation fairing
financially? All these questions are answered and leads us to the following practical suggestions:
1. nticipate that everything will not go smoothly – One of your children might lose their job and need financial assistance
A
or you may find that you or your partner are unable to work as long as you might like. Unfortunately, things generally do not
run as smoothly as planned so it is vital that you ensure you build a fund of emergency savings which you can dip into if the
unexpected happens.
2.
Factor inflation into your retirement planning – While inflation is starting to fall, it still has a significant impact on many
people’s retirement finances. Therefore, it is vital that you consider how inflation will impact on your pension pot and consider
taking steps to guard against this – for example, taking out an inflation-linked annuity.
3.
Consider the impact of remortgaging – While remortgaging to get a better interest rate makes complete sense, some
people simply re-mortgage for the maximum term so they benefit from lower monthly payments. Doing this repeatedly can
mean that you are still paying off a mortgage when you retire – not something most people want to be doing.
4.
Manage your borrowing – Debt is a normal part of financial management for many people, however some forget that it
can be harder to get credit when you are no longer employed so you need to factor this into your retirement planning.
“Following these simple tips will mean that people enjoy a better standard of
living in retirement with fewer worries.”
Clive Bolton, ‘at retirement’ director for Aviva.
Aviva Real Retirement Report 21
22. Aviva Real Retirement Report:
Today’s UK’s retirees at a glance – Spring 2012
All over Aged 55-64 Aged 65-74 Aged 75+
55s Pre-retirees Newly retired Long term retired
DESCRIPTOR WORRIED? PREPARED? COMFORTABLE?
“Smallest savings pots “Above average savings “Saving the most each
and saving the least each and the lowest number month, lowest typical debt
month, highest level without any savings, of the three age groups
of typical debt and a and an overwhelming – however those with a
significant number (30%) majority own their home mortgage to pay off still
with an outstanding either outright or with a owe a significant amount”
mortgage” mortgage”
Typical monthly income £1,303 £1,327 £1,318 £1,129
% surviving on under £750
19% 22% 16% 20%
per month
Savings and investments** £14,198 £9,842 £20,713 £14,998
Zero savings 17% 19% 14% 16%
Savings of £2000 or less 30% 35% 24% 26%
Savings of £100,000 or more 18% 18% 19% 17%
% not saving monthly 40% 43% 39% 36%
Amount saved monthly** £40 £29 £53 £57
Typical amount of debt
£2,045 £2,248 £1,950 £1,383
(of all-over 55s)*
% who are homeowners
80% 78% 83% 82%
(with a mortgage or outright)
% who own their home
60% 48% 72% 74%
outright
% with a mortgage 20% 30% 11% 8%
Average mortgage
£67,663 £63,796 £76,786 £87,500
(those with a mortgage)*
Average house price* £235,608 £234,100 £230,195 £262,963
Average house equity* £218,472 £209,658 £219,704 £254,823
Spending on food as %
15% 15% 15% 15%
of all spending
Spending on housing as %
23% 23% 22% 18%
of all spending
Spending on fuel and light as %
9% 8% 9% 11%
of all spending
* mean/true average ** median/typical
Aviva Real Retirement Report 22
23. Methodology
The Real Retirement Report was designed and produced by Wriglesworth Research. As part of this more than 12,600 UK consumers
aged over 55 were interviewed between February 2010 and March 2012.
This data was used to form the basis of the Aviva Real Retirement Report. Wherever possible, the same data parameters have been used
for analysis but some additions or changes have been made as other tracking topics become apparent.
Additional data sources include:
l Office of National Statistics figures for Q4 2011 – Unemployment
l Halifax House Price – January 2012
Technical notes
l 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.
l 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.
Over-55s Worries Index:
l The over-55s worries index uses data from 12 separate indicators – including fears over falling returns on investments, rises in the
cost of living, unexpected expenses – to create an index that allows changing attitudes towards financial threats to be tracked over
time. Using the data from the first Real Retirement Report as the base (100) it is possible to observe the trends over time and chart
how people have been feeling about the all the pressures on their finances.
For further details please contact
Tom Wilson
Aviva Press Office
01904 684 283
tom.wilson@aviva.co.uk
Aviva Real Retirement Report 23