Over 50s with no financial plan in place for retirement

The Momentum UK Team 14 December 2011

More than one third (37%) of over 55s have no financial plan in place for their retirement, a new report by insurance group Aviva has found.

retired-couple-beachDespite the goverments' best efforts at encouraging individuals to start saving - "It's never too early to start saving for retirement" as quoted by the government's independent online money advice organisation - Aviva's report has revealed that people only start actively thinking about retirement once they reach an average age of 48 years old. It would seem, as a consequence, that over two-thirds of retirees regret putting off financial planning and wish they had saved more for retirement.

Aviva's eighth quarterly 'Real Retirement Report', which surveyed and tracked the spending habits of 11,600 people in, or near, retirement, revealed some uncomfortable figures affecting a broad range of financial aspects which those of all ages should take notice of.

Key figures

When asked about the reasons for failing to prepare an adequate pension fund, 47% cited lack of money as the main reason and 8% cited they were 'too busy to think about it'.

Clive Bolton, Retirement Director at Aviva, said: "[...] those approaching retirement are the most vulnerable as they should be looking to secure their financial future. It is of concern to find so many people are finding a lack of money is the main factor inhibiting them from planning their retirement finances.

He continued: "Everyone's financial circumstances have been affected by the recent economic downturn, but it is crucial that people still plan for the long term."

These are words of advice for which less than a quarter of people seem to agree with - only 23% of those interviewed have started to research pension and annuity options.

Lets hope that the small 15% who have actively sought the advice of a financial advisor about their finances will rise in the near future. Although personal finance can seem like tiresome number-crunching, the report certainly reveals that ignoring pension plans can have tough consequences later on in life - and who can honestly say that they want to join that 67% of 65-74 year olds who say that failing to prepare financially for retirement is their biggest regret?