Top Retirement News

Derin Clark

Derin Clark

Online Reporter
Published: 21/08/2019

More than half (64%) of workers aged 45 and over do not know how much they will need to save to afford a comfortable retirement, research by Aviva UK has found.

With the full new state pension currently valued at £168.80 per week, which adds up to a retirement income of £8,777.60 per year, it is important for workers to know how much they will need to personally save in order to supplement their state pension and enjoy a comfortable retirement.

Along with knowing how much they need to save, employees also need to know how much they have saved already, however Aviva UK’s research also found that 37% of employees have no idea of how much they have already saved for their pension. In addition to this, the research found that 26% do not know at what age they’ll be eligible for the state pension.

Lindsey Rix, managing director of savings and retirement at Aviva, said: “Millions of mid-life employees are flying blind, and fast, towards their retirement. At the same time, these employees are calling upon their employers for help.

“Without a clear picture of what they currently have saved or might need to save for a comfortable retirement, our findings show many UK employees are approaching retirement with their eyes closed – with no realistic idea of how near or far they are from their destination.

“As a first step, mid-life employees who are mystified by their pension savings should try to get a clear picture of what they have saved so far and how much of an income this can provide them with over the course of retirement. For some, this may be a pleasant surprise, while for others, it could be the wake-up call that’s needed to spur them to take action. People whose pensions are in need of a boost shouldn’t be disheartened, however, as it’s never too late to save.”

Nationwide Building Society has extended its later life mortgage products and advice to include both existing and new customers wanting to borrow later in life.

The building society now offers three Nationwide Later Life mortgage products to borrowers aged 55 and over, as well as access to its Later Life mortgage consultants. The products available are a Retirement Capital and Interest product (RCI), a Retirement Interest Only (RIO) product and a Nationwide Lifetime Mortgage.  

New analysis from Key has revealed that up to half of older homeowners are using equity release to repay debt as they struggle to meet payments. Analysis of customer data suggests that 30% of people are using equity release to repay unsecured debt while 20% are using it to repay mortgages.

Cambridge Building Society has launched its first retirement interest-only (RIO) mortgage .

On average, UK women will outlive their retirement savings by 12 years, while men will outlive them by 10 years, according to a recently published report by the World Economic Forum.

In its report, Investing In (and for) Our Future, the World Economic Forum warns that retirement savings will not be able to cover retiree’s lifespans and that women should prepare to bear the brunt of the shortfall, going without retirement savings for two years longer than their male counterparts. It also warns that retirement savers are currently too risk-averse in their retirement investments and that many young to middle-age savers should change their risk outlook, understanding that outliving their savings is a far greater risk to them than short-term investment risk.

Han Yik, Head of the Institutional Investors Industry, World Economic Forum, said: “The real risk people need to manage when investing in their future is the risk of outliving their retirement savings. As people are living longer, they must ensure they have enough retirement funds to last them through their longer lives. This requires investing with a long-term mindset earlier in life to increase total savings later on.”

Recent Retirement News

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Nationwide extends its later life mortgage products to all older borrowers

16th August 2019

Nationwide Building Society has extended its later life mortgage products and advice to include both existing and new customers wanting to borrow later in life

Nationwide Building Society has extended its later life mortgage products and advice to include both existing and new customers wanting to borrow later in life

Read More
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Debt threat for older homeowners

8th August 2019

Up to half of older homeowners are using equity release to repay debt as they struggle to meet payments.

Up to half of older homeowners are using equity release to repay debt as they struggle to meet payments.

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Cambridge brings new product to the retirement mortgage market

19th July 2019

Cambridge Building Society has launched its first retirement interest-only (RIO) mortgage .

Cambridge Building Society has launched its first retirement interest-only (RIO) mortgage .

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Women to outlive retirement savings by 12 years

25th June 2019

On average, UK women will outlive their retirement savings by 12 years, while men will outlive them by 10 years, according to a recently published report by the World Economic Forum.

On average, UK women will outlive their retirement savings by 12 years, while men will outlive them by 10 years

Read More

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