New Aviva research shows that Europe's future retirees expect to rely on state pensions in decades to come

New research released today by insurer Aviva reveals that seven out of ten Europeans a decade away from retirement still hope the state will finance their golden years. In addition, despite the economic crisis creating more responsible attitudes towards retirement planning in 18 to 34 year olds - one of the first generations to experience the reforms to state pension systems currently being introduced - half still don’t pay any attention to information on personal finance.

Aviva’s latest “Mind the Gap” analysis – in partnership with The Futures Company –  reveals that two different generations of consumers in France, Italy, Ireland, Spain, Poland, Russia and Turkey are ignoring the warning signs about the gap between retirement expectations and inadequate levels of saving.

Aviva’s analysis reveals:

Unrealistic expectations in the years before retirement...
Despite high expectations of a long and comfortable retirement and a higher than average level of interest in financial information, 25% of Europeans a decade away from their retirement date are cutting the amount of money they save, or have stopped saving altogether. 

• 44% believe they need all of their monthly income prior to retirement to be comfortable.
• 56% are more concerned about paying for day to day expenses than their retirement.
• As reality looms and financial preparations prove inadequate, 41% are now planning to work beyond the normal retirement age to fund retirement.

....and a prevailing lack of interest and denial within the 18-34 year old generation
Aviva’s research also discovered that, while the struggles of the older generation have impacted the awareness of the 18-34 year old group, they should be encouraged more to increase their interest in saving and their understanding of the choices they need to make to plan for their retirement. 

• 60% say they are worried they won’t have enough money to retire on.
• A third (33%) admit that they don’t understand pensions.
• Over half (55%) are more focused on figuring out how to cover current expenses than planning long-term finances.

In 2010, Aviva calculated Europe’s annual "pension gap" - the difference between the amount that people retiring from 2011 to 2051 will need to maintain an adequate standard of living and what they will receive from public and private pensions – as being €1.9 trillion.

Aviva’s analysis indicates that the European Commission, national governments across Europe and the financial services industry must join together to create a co-ordinated policy on pensions and a secure platform for individuals to plan for retirement. Aviva urges the European Commission to include the recommendations it made in its 2010 report “Mind the Gap” within the Pension White Paper when it is published later this year:

• Governments to issue regular individual pension statements.
• Create a European Quality Standard for Pensions.
• Review measures for encouraging saving.
• Establish a Pensions Savings Target at national levels.

Andrew Moss, group chief executive of Aviva, said: “Whilst Europe’s pension gap is significant, it’s not unbridgeable. By investing the equivalent price of a daily newspaper younger savers can make a difference to their future prosperity.

“People’s retirement can be richer in every sense by the industry developing simpler products, changing people’s attitudes to saving and helping them to better understand the financial choices they need to make.

“European governments can also play an important role and we call on them to issue regular individual pension statements, review measures for encouraging saving, and establish a Pensions Savings Target at national levels.”

• Aviva’s report “Mind the Gap – Quantifying the Pensions Gap in Europe” is available to download from www.aviva.com/europepensionsgap.
• Aviva’s quarterly “Real Retirement Report”, which monitors the finances of the UK’s over-55s, is available to download from www.aviva.com/media. The sixth Aviva Real Retirement report will be issued on 29 June, investigating trends in employment for those at retirement.
• Insights for Aviva’s Mind the Gap research have been drawn from two studies:

1.  
   1. Aviva’s “Consumer Attitudes to Saving”, a global quantitative study of consumer attitudes to topics including risk, advice, investment and retirement.
   2. The Futures Company’s Global Monitor study, a quantitative study tracking key global consumer trends and attitudes across 20 countries well as detailed sections on finance and savings.

• Combing both Aviva’s Consumer Attitudes to Saving and The Futures Company’s Global Monitor study allowed Aviva and the Futures Company to examine the attitudes and approach to finance and retirement of over 8,000 people in France, Italy, Ireland, Spain, Poland, Russia and Turkey.
• Detailed profiles of two groups were created: “Pre-Retired”: people aged 55+ and not yet retired, and “Millennials”: people aged 18-34 years in terms of general attitude and approach to finance, attitudes to spending vs saving and views around retirement.
• Sample sizes:

		Ireland	France	Italy	Spain	Poland	Russia	Turkey
	The Futures Company Global Monitor (2010, except Poland where 2009 data used)
	18-34	401	287	235	310	384	685	610
	55 plus	96	119	194	167	118	205	36
	Aviva Consumer Attitudes to Saving (2010)
	18-34	775	550	544	642	774	n/a	n/a
	55 plus	299	309	381	403	185	n/a	n/a

-ends-

Enquiries:
James Leach, head of external communications, Aviva Europe
+44 (0)20 7662 0253 

Emily Dimmock, Edelman           
+44 (0)20 3047 2076

Notes to editors:

About Aviva

• Aviva is a leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's sixth largest insurance group based on gross worldwide premiums at 31 December 2009.
• Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales* of £47.1 billion and funds under management of £402 billion at 31 December 2010.
• The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive
• For broadcast-standard video, please visit www.aviva.com/media/b-roll-library. 
• Follow us on twitter: www.twitter.com/avivaplc  

* Based on 2010 published life and pensions PVNBP on an MCEV basis, total investment sales and general insurance and health net written premiums, including share of associates' premiums.