In the UK, only around a third of adults are actively saving and investing for their retirement.
In the UK, only around a third of adults are actively saving and investing for their retirement. That is the stark warning according to Aviva, who today launched the findings of its latest global annual survey of consumer attitudes to savings as part of a parliamentary launch which was led by the economic secretary Ed Balls and Aviva group chief executive Richard Harvey.
The findings are being released following the parliamentary launch of Aviva's website http://www.six-steps.org/, which is dedicated to providing a solution to the lack of retirement planning.
Aviva has been researching global savings patterns in its annual survey of consumer attitudes to savings for four years. During this period, around 80,000 people have been surveyed, and this year 24 countries were covered.
The key global trends from the 2007 research include:
- Just under half (45%) of the global sample are saving regularly - despite people in most markets agreeing that investing or saving regularly is the most practical way to live comfortably in retirement.
- There are persisting high levels of anxiety over retirement - people know that having enough money in retirement is important but in many countries, Eastern Europe in particular, few are taking steps to protect themselves.
- Globally, over 40% of retired people, and even more in emerging markets, wish they had done something earlier to provide for their retirement.
- Over 40% of people globally feel that financial planning for retirement is too complex.
Key UK findings:
- In the UK, only 36% of people say they are regularly setting aside money for retirement.
- Around half of the UK accept that they are going to have to work beyond their normal retirement date to fund their retirement.
Recognising these problems Aviva has launched http://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 financially 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 six simple and educational steps aim to help people develop an understanding of their own financial situation and retirement planning in general. Through a planning tool on the site users can build up a picture of their own financial position which aims to give them the confidence to take action and begin their retirement planning.
The site also includes expert commentators to create a sense of community and stimulate debate and dialogue with users as they become more confident about retirement planning.
For more information please visit http://www.six-steps.org/
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For more information please contact:
Bev Aujla, Lansons Communications
Telephone: 020 7294 3683
E-mail: beverleya@lansons.com
Joe Laing, Lansons Communications
Telephone: 020 7294 3649
E-mail: joel@lansons.com
Rachel O'Hare, Lansons Communications
Telephone: 020 7294 3625
E-mail: rachelo@lansons.com
Supporting quotes for http://www.six-steps.org/
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."
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:
- Six-Steps - it is not a commercial tool for Aviva and none of its products are featured in the site. It is purely aimed at helping people plan for the future.
- Norwich Union's website http://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.
- Aviva is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £41.5 billion and assets under management of £364 billion at 31 December 2006.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.