Typical pre-retirees saving just 2.5% of monthly income

While pre-retirees (55-64s) have the highest gross monthly income (£1,560) of all over-55s, they also save the least amount each month (2.5% of income or £39) according to figures from September's Aviva's Real Retirement Series.

This research tracks the three ages of retirement, which are broken down by pre-retirees (55-64s) who are generally still working and should be preparing for retirement, the retiring (65-74s) who may have stopped work and are drawing their pensions and the long-term retired (over-75s) who are hopefully enjoying the results of a life of hard work.

The retiring (65-74) and the over-75s both save more (£61) than the pre-retiring, aged 55-64, who are also the most likely to save nothing each month (38%) and have no saving pot (18%).

While up to 75% may be a member of a pension scheme, with 42% of over-55s saying their biggest concern over the next six months is paying for unexpected expenses, building a savings cushion is vital.   Indeed, currently more than two million over-55s admit they have nothing in savings and face the problem of paying for any significant expenses such as a new car, boiler repairs, and holidays out of their fixed monthly income.

To help people make the most of any savings they do have, make informed decisions on pensions and prepare for retirement, Aviva has created a new campaign supported by the following website (helping-you-retire.co.uk).                                                 

This initiative is not only aimed at providing people with jargon-free guidance and support but also challenging the way financial companies communicate with people.

Clive Bolton, Managing Director of the At Retirement business at Aviva, comments: "It's vital that people take an active role when they retire to make sure that they get the best retirement they can.  The first step towards this is taking a little time to understand all of the options retirees have open to them.

"For many this may seem confusing or daunting at first, but it's incredibly important.  That's why we've launched a campaign which focuses on providing people with jargon-free help on how to prepare for retirement so people can make better choices about how they use their retirement funds."