One in five retirees regrets not taking more responsibility to manage their money during work years, and nearly two-fifths of them would advise their younger self to invest in a workplace pension and/or personal pension. These and many other insights and figures on retirement and pensions are highlighted in the Real Retirement Report published in October 2013 by insurance giant AVIVA.
The report is based on a survey carried out by AVIVA aimed at understanding the retirement concerns and the financial wisdom of the Pre-retirees (55-64 years old), Retiring (65-74 years old), and Long-term retired (75 years and older). Among the many findings from the survey, “having enough money to live comfortably” was the prime concern expressed by 28% of the total respondents, second only to “being in good health” 38%.
Looking back at the work years
Reflecting on their work life, one in three of the over-55s made their original career choice because they thought they would be good at it. Genuine passion for job was the reason for one in four of the retirees for their job choice. Interestingly “passion for the job” was a bigger motivational factor for men (30%) than for the women (23%), as seen in the findings.
More than half of the respondents also changed their jobs during their lifetime. While 14% of them did so because of the passion for the new job, for 17% of the over-55s it was the higher salary on offer that made them change jobs.
Financial plight of the retirees
Savings and investments for one-third of the 55-64s approaching retirement is less than £500, while their average monthly outgoings have reached £1308. For the over 65s income has dropped by at least 10% in the last 12 months.
Financial advice to the younger self
“Save more on a monthly basis” was one advice that echoed in more than half of the surveyed population - 50% of the over-55s would advise their younger self to take this action. The second strong recommendation from 40% of the respondents was to make better use of savings products like ISAS. A strong majority (39%) believed taking out a workplace pension and taking out a personal pension (39%) was something they could have done, while another 18% recommended using a financial adviser to plan ahead.
Clive Bolton, Managing director of AVIVA’s At Retirement business commented: “The subject of retirement finances can be daunting but by seeking the right advice and starting your preparation early you can ensure that you are able to make the most of your later years.”
Read the full report here: http://www.aviva.co.uk/adviser/product-literature/view-document.cgi?f=realretirementreportautumn2013.pdf