Finances of the typical modern familyThe Real Retirement Report Summer 2012

Workshops/Seminars on retirement finances

Benefit statements Ability to reduce working hours or work flexi-time

Offer to extend my working life

Counselling / advice on how to adjust to

retirement

Written literature on the financial issues

surrounding retirement

A dedicated member of staff to talk to

about these issues

12% 9% 10%

9%7% 5%9%

What forms of support did your final employer provide when approaching retirement?

2010 Summer 2011 Summer 2012 Summer

All 55 – 64s 65 – 74s Over 75s

12% 11% 10%

Percentage of over-55s who survive on less than £500 per month

Over-55s income tracking - June 2012

£1,361 £1,359 £1,390 £1,318

£ £ £

State pension 62%

Employer pension 39%

Personal pension 34%

Wages/other earned income 32%

Investments/savings 27%

Spouse’s pension 22%Benefits inc. unemployment 17%

Top monthly income sources for over 55s

68%

16 years35% 35% 21%

of employees want employers to help them as they approach retirement

Over-55s have typically been with their last

employer for

financial workshops

Employees’ top requests are:

retirement literature a list of recommended financial advisers

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Typical savings pots of the over-55s - June 2012 Debt by type of formal borrowing

All over 55s 55-64 65-74 Over 75

£9,373

£26,085

£12,998£15,756

Debt of those with a mortgage

East

£223,958

£87,500

House Price Mortgage

Scotland

£191,827

£43,056

London

£395,098

£70,000

South East

£316,827

£78,040

East Midlands

£208,398

£82,292

South West

£281,327

£70,000

West Midlands

£191,518

£51,786

Wales

£191,389

£37,500

North East

£167,411

£77,500

Yorkshire

£165,402

£45,833

North West

£178,779

£47,794

UK

£236,474

£63,555

Credit Cards

£3,470

Personal Loans

£6,544

Hire Purchase

£2,802

Overdraft

£1,564

Doorstep lenders

£846

Storecards

£766

106000692 07/2012 © Aviva plc

1. Take the lead in securing advice – With 64% of employers offering no additional or tailored support

for employees approaching retirement, you can’t just rely on your workplace for help planning your later

life finances.

2. Consider part-tirement – Some employers are happy to offer you assistance with planning your exit from

work so consider whether you might want to work part-time or work beyond the traditional retirement age.

3. Look at the wider implications of stopping work – While retiring will mean a drop in income for most

people, there are other implications. Will you lose your private medical insurance and therefore do you need

to take out a private policy?

4. What borrowing do you have? – Entering retirement with significant debts, even if you have assets, is not

ideal. Consider how you can use your assets to reduce your debts and therefore your monthly outgoings.

So what does this tell us?

In a rapidly changing world it makes sense to make the most of your retirement; to understand what you have, the options available and ensure you maximise your assets.

To find out how Aviva can helpvisit www.aviva.co.uk/retirement

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