A new research commissioned by Aviva in to older workers’ pension planning has shed new light on the behaviour and attitudes of those approaching retirement.
Some of the main finding were:
- Retirement prospects hang in the balance as over-50s workers rely on downsizing (25%), an inheritance (24%) or a lottery win (13%) to afford a comfortable retirement
- Peak earnings thought to kick in aged 51: although 34% save more during this period, only 12% say they have or would pay more into a pension
- A fifth make big purchases (21%) while the same proportion increase everyday spending (20%) during peak earnings period
- Older workers’ ability to save is hampered by cost of living (33%) and need/desire to pay off a mortgage (39% of mortgage-holders)
- More than 2 million over-50s workers say they are yet to take pension saving seriously
Lindsey Rix, Managing Director, Savings and Retirement at Aviva said:
“As everyday financial pressures take their toll on older workers, many are postponing retirement planning and are instead relying on factors other than savings – many of which are outside of their control – to afford a comfortable retirement. Even those options that might seem guaranteed, such as making a profit from selling a home, could pose a challenge should economic or market conditions change.
“Wherever possible, retirement saving shouldn’t be left to chance. Although older workers have multiple demands on their income, taking time to understand what needs to be saved in order to afford a good standard of living in retirement and putting more away each month – no matter how small the increase – can make a big difference.”