Move aside TOWIE, there’s a new gang in town
Following the success of TV reality shows The Only Way is Essex and Made in Chelsea, and with more than 10 million of the UK population now over 65 , maybe it was only a matter of time...
BBC4 has launched a new docudrama, called Close To The Edge. It shines a spotlight on the lives, trials and tribulations of a group of retirees living in Bournemouth.
Youngest member of the cast, 66-year-old Babs Fowler, said “I would like people coming up to retirement to look at us and see that life’s not over. Don’t get your woolly socks and your hot chocolate and sit in front of the television – life is for living.”
Reviewing the early episodes, the Daily Telegraph appears unconvinced of the format. “The result is every bit as bad as that sounds – and then some”. They went on to report that it was “as exciting as a shopping list.” The BBC has not yet confirmed plans for a second series.
Babs and her co-stars can learn more about managing their finances in retirement on the Savings and retirement section of the Aviva website.
What’s the ‘five-a-day’ equivalent for savings and retirement?
The UK Department of Health introduced its healthy-eating ‘five-a-day’ campaign in March 2003 . Since then, many have agreed that use of the simple rule of thumb has had success in promoting the benefits of a balanced diet.
The Pensions Policy Institute has recently considered whether a similar approach could be used to encourage a healthy financial retirement. They defined a rule of thumb as “a guideline that provides simplified advice regarding a particular subject”. They identified key characteristics of a good rule of thumb:
- It should be easy to understand
- It should be in the general best interests of the individual
- It should not result in any negative consequences if an individual should choose to follow it
For retirees the Pension Policy Institute considered two rules of thumb:
- The 4% rule: that individuals should withdraw no more than 4% of their pension pot each year to ensure it lasts their lifetime
- The basic income rule: that individuals should secure a basic income sufficient for the rest of their lives, before considering other needs (e.g. leaving an inheritance)
While each was seen to have its strengths, neither were found to pass the ‘rule of thumb tests’ with flying colours.
To complement any rules of thumb you may choose to follow, you can use Aviva’s Retirement Planner tool to help you get an idea how much income you could have in retirement – and if you need to change anything to help with your planning.
Aviva calls on the world to play as ‘one team’
On 25 September, world leaders met at the United Nations and committed to 17 global goals to achieve three critical objectives in the next 15 years: end extreme poverty, fight inequality and injustice, and fix climate change.
In a rare honour, Aviva Chief Executive Mark Wilson was invited to represent business at this meeting . Mark said “Aviva has been in business since 1696 because of our ancestors’ good long-term decisions. We do the same for our 34 million customers and with the $500 billion of assets we also manage. The sustainable development goals are a unique opportunity to create global legacy.”
He invited all concerned to play as “one team”, and closed with the belief that, if we unite, “we will win”.
You can watch Mark’s full speech on Aviva’s website.
Our date of death – a welcome unknown?
New retirement freedoms became law in April, giving many savers much greater flexibility in how they use their pension savings. This increased flexibility is to be celebrated... but it doesn’t remove the challenge of making our savings last through the remainder of our lives. We may know how much money we’ve saved, but it remains a mystery how long we will live… at least for the present.
A team at King’s College London have studied 54,000 markers of gene activity to identify the body’s ‘biological age’. The team believe combining lifestyle factors and biological age could give a more accurate picture of health and actual life expectancy.
For those with a fear of uncertainty, this discovery could be welcome news. Others may, understandably, prefer to live in ignorant bliss. For the curious, and those trying to plan their financial retirement, Aviva offers its own life expectancy calculator.
We stress it comes with no guarantee, yet!
Happy International Day of Older Persons
There are around 600 million people over the age of 60 across the globe; a figure which is expected to double by 2025, according to the United Nations.
The organisation designated 1 October as International Day of Older Persons.
Here are eight facts you may not know about older people in the UK:
- There were more than half a million people aged 90 and over living in the UK in 2014, almost triple the number thirty years ago.
- For every 100 people aged 90 and over in 2014, 29 were male and 71 were female.
- The number of centenarians (people aged 100 and over) living in the UK has risen by 72% over the past decade, reaching 14,450 in 2014.
- Male life expectancy has increased from 70.8 in 1980-82 to 79.1 in 2012-14. Female life expectancy has increased from 76.8 to 82.8 during the same period.
- The most common age of death was 86 years for men and 89 years for women. This is higher than current average life expectancy at birth.
- Men aged 85 in 2012-14 could expect to live to 90.8 whereas women could expect to live to 91.8.
- Three in 10 of those aged 80 and over reported being lonely in 2014-15.
- A third of those over 80 reported very high levels of life satisfaction in 2014-15.
Here’s to the world’s 600 million, and growing.
Aviva is committed to supporting those approaching retirement and beyond. You’ll find information on planning to make the most of retirement on the I’m retired page of our website.