A new report released by insurer Aviva calls on the institutions of the EU to support action to raise people’s awareness of how much they stand to receive in retirement.
A new report released by insurer Aviva calls on the institutions of the European Union (EU) to support action to raise people’s awareness of how much they stand to receive in retirement.
The latest report in Aviva’s “Mind the Gap” series, called “Towards Annual Pension Statements across the EU” reveals how raising awareness of how much people stand to receive in retirement would encourage them to think about their retirement strategy.
Europe’s €1.9 trillion annual pension gap cannot be reduced with a single solution, however Aviva believes that once a year, every year, adult EU citizens should receive a single statement integrating state, occupational and private pensions of the income they can anticipate receiving in retirement.
Aviva’s research shows that consumers across the region are ignoring the warning signs about the gap between retirement expectations and levels of saving, leaving them financially under-prepared for retirement. For example, only 23% of Europe’s 18-34 year olds take an interest in information on personal finance. This group 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. Access to information such as annual pension statements designed in a clear, simple and engaging way – is clearly one of the actions required.
Aviva calls on the European Commission to:
- Consult on the minimum standards that should apply to annual pension statements - and options for public private partnership working – in its forthcoming Pensions White Paper;
- Create forums to share best practice between Member States;
- Hold pilot projects to test the impact of pension statements on decision-making and savings habits.
Launching the report at the European Parliament in Brussels, Igal Mayer, Aviva Europe CEO, said: “Changing people’s attitudes to saving and helping them to better understand the financial choices they need to make is an ambition held by Aviva, and it should be a common objective for EU governments too. Yet our research shows that consumers don’t pay enough attention to information on personal finance.”
“Providing annual pension statements would prompt individuals to take action as a result of seeing clearly what they stand to receive in retirement. Aviva’s report demonstrates that the challenges of doing so are not insurmountable and we hope the European Commission will open a pathway towards this public policy goal in its forthcoming Pensions White Paper.”
Notes:
- Aviva’s report “Towards Annual Pension Statements across the EU” is available to download from www.aviva.com/europepensionsgap
- 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 report “Mind the Gap – Quantifying the Pensions Gap in Europe” is available to download from www.aviva.com/europepensionsgap
- Aviva’s consumer insights were drawn from two studies:
- Aviva’s “Consumer Attitudes to Saving”, a global quantitative study of consumer attitudes to topics including risk, advice, investment and retirement. - 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.
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Enquiries:
James Leach, head of external communications, Aviva Europe +44 (0)20 7662 0253
About Aviva in Europe:
- Aviva operates in 13 countries across Europe, including the UK, providing life, general and health insurance products to more than 32 million customers. Customers are served through a multi-channel distribution network, including banks, insurance intermediaries, corporate partners, agents, direct sales force, telephone and the internet.
- Aviva is a clear leader in bancassurance in Europe and the UK, with 62 banking agreements.
- Our chosen presence in Europe combines large, developed economies of the UK, France, Spain, Ireland, Italy, and Poland with the emerging markets of Turkey and Russia, providing strength and scale in some of the largest and most attractive insurance markets in the world.
- 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