Commenting on Aviva’s real retirement report, Malcolm McLean, senior consultant, Barnett Waddingham says:
“It is very clear from Aviva’s real retirement report that more people, particularly those of middle age, are getting the message that they need to plan and save for their later lives if they are going to achieve the standard of living they would wish to have in retirement. Although ideally joining and contributing as much as possible to a pension scheme ought to start at a much earlier age, it is probably never too late to look for the opportunity to give a boost to that nest egg which the current improving levels of income may now make possible.
“This could also impact on the age at which older people may feel able to cease working. Whereas it is good that many are now fit and able to work on past what we have traditionally seen as normal retirement age, and choose to do so, it is a fact that a sizable number would be happier to retire but don’t have the necessary financial means to enable them to do so. This in turn can have a detrimental knock-on impact on youth unemployment which solutions to are undoubtedly needed. The prospect of a better income will enable more to retire at a relatively younger age with a view to fully enjoying their retirement years, thus freeing up job opportunities for younger would-be workers.
“The one worrying aspect of the report is the apparent failure of over-55s to factor in or include family in their personal financial plans. More than a quarter (28%) admit to not having had a conversation with either their spouse or family about their retirement finances. This is a difficult subject and not one the state can really legislate for, but we must continue to encourage couples to be prepared to discuss and share their plans. Women in particular can be left very exposed financially after the death of a partner and the question of on-going provision for a surviving spouse should be sorted out whilst both are alive. Sadly this is often not done, which can result in financial misery for many widows.”
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