The world's population is financially under prepared to cope with retirement, according to Aviva

• 60% of the world’s pre-retired adults worry they haven’t saved enough for retirement
• 48% of the world’s retired adults wished they had done something earlier to provide enough for their retirement
• Only 3 in 10 Brits are currently saving for retirement, compared with almost a half of Americans and three quarters of Hong Kong citizens
• Aviva launches www.six-steps.org to provide free, unbiased advice on retirement planning¹

Six in ten (60%) pre-retirees across the world are under prepared for the financial rigours of retirement prompting real concerns of a global pensions crisis, according to Aviva, the savings, investment and insurance group’s survey into Consumer Attitudes to Savings 2006.²

The annual study, which has over three years surveyed 50,000 people from 23 countries, conducted by Henley Centre Headlight Vision, found that 48% of all retired people regret not doing more to provide for their retirement and half of all pre-retirees expect to work in their twilight years to fund their future.

Richard Harvey, group chief executive at Aviva, comments: “Our research shows that the pensions black hole is not just a UK-specific issue but an area of global concern. Broadly, the world’s pre-retired population seems to have resigned itself to the fact that the term ‘retirement age’ may not apply to a specific age and will become increasingly ambiguous.”

Sian Davies, chief executive of the Henley Centre Headlight Vision, comments: “From this global survey it is apparent that consumers need to redress the balance between the age they hope to retire and being able to fully meet their financial needs throughout retirement.”

With this in mind Aviva has launched www.six-steps.org to engage more consumers in financial planning for the future. The free, unbiased planning resource has been created to help people make informed financial decisions about their retirement. The site takes people through six simple steps towards planning a secure and financial healthy retirement:

• Step 1: Take control - make a plan for your future
• Step 2: Know yourself – how do you feel about money and taking risks
• Step 3: Save little and often – put some money aside every month
• Step 4: Invest for the future – build up your long term savings
• Step 5: Protect yourself – look after yourself and your money
• Step 6: Get advice – speak to a financial adviser

The Economic Secretary to the Treasury, Ed Balls, said: "We want everyone in society to have access to, and use, financial services with confidence. Financial decisions can be difficult. Financial products are complicated and there can be too much jargon. This puts people off, or they can end up buying something that is not right for them. Sometimes people just want to discuss their financial options and not buy anything. We believe there is a gap in the provision of this last type of advice - generic advice - and we are pleased to see Six-steps.org playing a role in this area."

A house isn’t a pension it’s a home
The surge in house prices over the past five years in the UK is one area where adults have increasingly looked to supplement retirement income, with more than one in two Brits (58%) seeing their current home as “investments for their future”. This statistic prompts obvious fears that if property prices in the UK were to crash, then many pensions would go too. This concern is not just confined to UK shores - the Irish and the Americans are even more reliant on property prices.

Richard Harvey comments: “With property currently offering healthy returns it is easy for would-be retirement savers to be blinkered. We would urge all pre-retirees to diversify any retirement portfolio and not to put all their savings under one roof.”

A little understanding…
The perceived complexities around pensions and savings appear to be a major reason for many people throughout the world not saving for retirement - from 53% of Hungarians down to 23% of Germans.

Richard Harvey comments: “It is evident that there are a significant number of people who want to arm themselves with clear and concise information and, in many cases, they are going on to the internet to find it.

“It is with this in mind that we have created www.six-steps.org - to allow people to demystify the retirement process, promote a greater understanding and to empower individuals to build their own retirement plan, without the pressure of buying specific products.”

Not saving and not concerned?
Savings means different things to different people - only one in five (20%) adults in the Netherlands are concerned that they have not saved enough to fund their retirement, compared with six in ten (58%) Americans. Currently 43% of the UK are concerned over the level of their current savings for retirement, however, only a third of people in the UK (31%) are planning to use their savings for retirement.

Failure to plan
Currently, Eastern Europeans are the most averse to retirement planning. Perhaps this can be explained through the history of the region, where the state would have provided in retirement. As expected, the numbers of retirement planners in Western Europe is significantly bigger.

Richard Harvey concludes: “Retirement planning throughout the world is an issue that needs resolving. Globally, we are in a situation where inaction leads to anxiety rather than anxiety leading to action.

“As the population grows, so does the stress placed on state pension schemes. Unless people make a concerted effort to take control of their retirement, by planning effectively, we shall continue to see a worrying trend that will ultimately lead to higher numbers of people struggling to adequately fund their retirement.

“Aviva has launched six-steps.org to enable pre-retirees the opportunity to improve their retirement prognosis by helping them plan for all eventualities. Users are encouraged to set a retirement goal and work towards it to try to alleviate some of the pain that is faced by the current retiring generation.”

For more information please visit www.six-steps.org

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For more information please contact:
Bev Aujla, Lansons Communications, 020 7294 3683 or beverleya@lansons.com
Joe Laing, Lansons Communications, 020 7294 3649 or joel@lansons.com
Rachel O’Hare, Lansons Communications, 020 7294 3625 or rachelo@lansons.com
Sian Davies, Henley Centre Headlight Vision, 020 7955 1800 or sian.davies@hchlv.com

Supporting quotes for www.six-steps.org

Stephen Haddrill, Director General of the ABI, said: "The challenge is to stimulate people to take a greater interest in their financial affairs and to give them more confidence to take advantage of the wide range of advice already around. We believe Six-steps.org can play an important role in helping people plan for their future."

John Tiner, Chief Executive of the Financial Services Authority, said: "We welcome Aviva's commitment to improving financial capability in the UK. The FSA is leading a National Strategy for Financial Capability, working with a wide range of partners, including Government, industry and the voluntary sector. Over the next five years, we aim to help at least 10 million people at different stages in their lives become more confident in managing their money through programmes targeted at - among others - schools, young adults, employees in the workplace and new parents."

Teresa Perchard, Director of Policy at Citizens Advice, said: "There is a significant need to help thousands of people make the most of their money, both now and in the future. People need the confidence and ability to budget, borrow and save effectively. Providing advice and teaching financial skills really does work as our bureaux have seen people improve their money management skills and confidence significantly. We very much welcome initiatives which help with this."

• Notes to editors:
  ¹ Six-Steps – it is not a commercial tool for the company and none of its products are featured in the site. It is purely aimed at helping people plan for the future.
• Aviva is one of the leading providers of life and pensions to Europe with substantial positions in other markets around the world, making it the world’s fifth largest insurance group based on gross worldwide premiums at 31 December 2005.
• Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of Ł36 billion and assets under management of Ł322 billion at 31 December 2005.
• The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
• Norwich Union's website, www.makesenseofit.com, provides information about life and pension products. Aimed at consumers who want to learn more about managing their money, the site introduces the basics of investing and highlights the benefits of taking professional advice.
• ² Consumer Attitudes to Savings Survey 2006 was conducted by Henley Centre Headlight Vision in Q1 2006 on behalf of Aviva plc. Henley Centre Headlight Vision provides intelligence, consultancy and research solutions to blue chip clients around the world. All of their work is informed by their proprietary global knowledge base of trends and futures insights. HCHLV has a global footprint with offices in London, New York, Mumbai and Delhi and an intelligence network that spans over 28 countries.
• The Consumer Attitudes to Savings Survey was first conducted in 2004 questioning adults (18+) in 11 countries, 16 countries in 2005 and 21 countries in 2006.