Over a fifth of adults fear cash shortage in retirement

Article date: 3 May 2005

The era of a relaxing retirement appears to be over with 22% ofadults over the age of 55 admitting to being concerned about nothaving enough money when they stop working, according to research*from Norwich Union Equity Release.

While traditionally retirement is supposed to be a time forpensioners to enjoy themselves, the reality is that only a third(34%) of retired people have enough money for luxuries. Almost half(47%) have just enough money to survive, and one-in-six (17%)struggle to get by, some having to rely on family and friends forsupport.

Norwich Union also asked people aged over 55 what theyconsidered to be the most important area to be addressed in theGeneral Election. A third (33%) of adults want minimum pensions torise and 29% want council tax scrapped or reduced.

Mark Kelly, of Norwich Union Equity Release, said: "Retirementis a time when people hope to be able to enjoy a leisurelylifestyle but our research shows many people are never able toenjoy such luxuries, and spend old age worrying about theirfinances.

"With house prices in the UK at record levels, older people whoare living longer and wanting to enjoy a more fulfilling retirementmay be looking to the equity locked up in their properties as a wayto improve their lifestyle in retirement."

Norwich Union also found that seven in ten would hate to have toleave their current home. This is hardly surprising consideringover half (55%) have lived in their home for more than 20years.

-ends-

* Source: Consumer survey conducted for Norwich Union by TNS,amongst 662 British adults aged 55 years and over, from11th – 13th and 18th– 20th March 2005.

Press office contacts: 
David Gwyer01904 452828 Out of hours 07800 699508
James Evans 01904 452791 Out of hours 07800 699525

Notes to editors:

  • About the Norwich Union Home Reversion Plan A home reversionplan enables a homeowner to sell part, or all, of their home inreturn for a cash lump sum payment. Customers retain the right tocontinue living in their home for the rest of their life but whenthe home is sold, the provider receives the same proportion of thesale proceeds as originally sold to them by the homeowner.
  • The Norwich Union Home Reversion Plan includes a house priceinflation guarantee and inheritance protection guarantee.
  • Lifetime mortgages give homeowners the chance to raise a cashlump sum or regular income by taking out a loan secured on thevalue of their home. The interest due is rolled up over the lifeof the loan and is repaid, along with the original loan, when theplan ends. This normally when the homeowner goes into long-termcare or dies.
  • Full written terms and conditions are available on request.Norwich Union is the UK's largest insurer. It is the UK's largestprovider of life, pensions and investment products and one of theleading IFA providers. IFAs provide around 75% of the company'slong-term savings business in the UK.
  • Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group. Norwich Union's newsreleases and a selection of images are available from Aviva'sinternet press centre at www.aviva.com/media
  • Norwich Union Equity Release Limited No 3286484. Registered at2 Rougier Street, York, YO90 1UU. Authorised and regulated by theFinancial Services Authority for lifetime mortgages. Homereversion plans are not regulated by the Financial ServicesAuthority.

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