The era of a relaxing retirement appears to be over with 22% of adults over the age of 55 admitting to being concerned about not having enough money when they stop working, according to research from Norwich Union Equity Release.
The era of a relaxing retirement appears to be over with 22% of adults over the age of 55 admitting to being concerned about not having enough money when they stop working, according to research* from Norwich Union Equity Release.
While traditionally retirement is supposed to be a time for pensioners to enjoy themselves, the reality is that only a third (34%) of retired people have enough money for luxuries. Almost half (47%) have just enough money to survive, and one-in-six (17%) struggle to get by, some having to rely on family and friends for support.
Norwich Union also asked people aged over 55 what they considered to be the most important area to be addressed in the General Election. A third (33%) of adults want minimum pensions to rise and 29% want council tax scrapped or reduced.
Mark Kelly, of Norwich Union Equity Release, said: "Retirement is a time when people hope to be able to enjoy a leisurely lifestyle but our research shows many people are never able to enjoy such luxuries, and spend old age worrying about their finances.
"With house prices in the UK at record levels, older people who are living longer and wanting to enjoy a more fulfilling retirement may be looking to the equity locked up in their properties as a way to improve their lifestyle in retirement."
Norwich Union also found that seven in ten would hate to have to leave their current home. This is hardly surprising considering over half (55%) have lived in their home for more than 20 years.
-ends-
* Source: Consumer survey conducted for Norwich Union by TNS, amongst 662 British adults aged 55 years and over, from 11th – 13th and 18th – 20th March 2005.
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Notes to editors:
- About the Norwich Union Home Reversion Plan A home reversion plan enables a homeowner to sell part, or all, of their home in return for a cash lump sum payment. Customers retain the right to continue living in their home for the rest of their life but when the home is sold, the provider receives the same proportion of the sale proceeds as originally sold to them by the homeowner.
- The Norwich Union Home Reversion Plan includes a house price inflation guarantee and inheritance protection guarantee.
- Lifetime mortgages give homeowners the chance to raise a cash lump sum or regular income by taking out a loan secured on the value of their home. The interest due is rolled up over the life of the loan and is repaid, along with the original loan, when the plan ends. This normally when the homeowner goes into long-term care or dies.
- Full written terms and conditions are available on request. Norwich Union is the UK's largest insurer. It is the UK's largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company's long-term savings business in the UK.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group. Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
- Norwich Union Equity Release Limited No 3286484. Registered at 2 Rougier Street, York, YO90 1UU. Authorised and regulated by the Financial Services Authority for lifetime mortgages. Home reversion plans are not regulated by the Financial Services Authority.