Article date: 4 August 2009
Aviva annual global survey reveals retirement fears
Just days after the Government signalled plans to scrap the compulsory retirement rule, Aviva has revealed some unsettling findings about the UK’s readiness for retirement.
According to Aviva’s annual "Consumer Attitudes to Saving" survey, more than half the UK population (56%) aren’t financially prepared for retirement, feeling they will have to work beyond their "normal" retirement date in order to fund their later years. This represents a 12% increase compared to five years ago.
There was also evidence of "heads in the sand", with two thirds (64%) saying they are worried about their levels of provision, but only 41% taking steps to do something about it. 37% feel the only way they will realistically save enough for retirement is if they are required to do so by law.
The annual survey, which interviewed 1,000 adults across the UK, also found almost half the population (49%) believe that their future financial security is in their home.
This latest information also marries with Aviva’s recent Cost of Family Care survey which highlights this issue of the nation’s "babygloomers" who are simultaneously financing both their elderly parents and their own children. This report showed that nearly half (43%) are planning to delay their plans for retirement. One in 10 (11%) say they are ready to cash in their savings and investments to fund their parents’ retirement.
Darren Dicks, head of annuity propositions for UK Life, Aviva says: “Our research shows some very interesting themes around people’s retirement fears. While it suggests that people are getting to grips with their finances, most feel they could and should be doing more to prepare for retirement. This is a crucial area we need to address to prevent a retirement crisis in the future.
“At Aviva we are working very closely with our customers to offer support and find solutions that will enable them to have a more comfortable retirement, whatever their circumstances. For example, we know that thousands of UK consumers are receiving up to 10% less income than they could from their annuities because they did not shop around, so we have recently launched a new TV advertising campaign to educate customers about the importance of choosing the right annuity.
“We are keen that people use their assets wisely - whether pensions, property or savings - to make the most of their later years. By taking control of retirement planning sooner rather than later and by seeking sound financial advice, we can help to alleviate customers’ fears and help them to prepare for the retirement they deserve.”
People thinking about retirement planning are advised to either speak to an independent financial adviser or contact Aviva on 0800 056 1643. Aviva can only give information or advice on its own products.
Aviva Press Office contacts:
Telephone: 01904 452828
Mobile: 07800 691569
Notes to editors:
Sources: Aviva Consumer Attitudes to Saving Survey 2009: 28,000 respondents surveyed internationally, 1,000 from the UK.
The Cost of Family Care Survey: Aviva commissioned research with Tickbox amongst 1,711 25 year olds with 652 over 50 year olds between 06/02/2009 and 12/02/2009.
*Results from the December 2008 Aviva Report "Understanding the Sandwich Generation" which interviewed 518 adults who look after both dependent children and elderly parents.
Aviva, the international savings, investments and insurance group, is the world’s fifth largest insurance group, serving 50 million customers across Europe, North America and Asia Pacific.
In the UK, Aviva is a leading provider of life, pensions, investment, general insurance and health products to more than 20 million customers. Aviva also provides roadside assistance through the RAC. Products are distributed through a number of channels including IFAs, brokers, corporate partners and direct to customers via the internet.
Aviva's UK Insurance business has a market share of around 15%, making it the largest general insurer in the UK. The business is focused on insurance for individuals and small businesses.
Aviva's life and pensions business in the UK has a total market share of 12% and a top three position in its key markets of savings, protection, and annuities.