Money Talks: Almost two thirds of mid-retirees have not had essential conversations about finances

Research by Aviva, a leading pension provider, and Age UK, the UK’s expert voice on ageing, has found that mid-retirees are navigating retirement without the financial support or guidance they may need as they get older^[1]. The report by Aviva and Age UK (published May 2025), Retirement Reality: Managing Money in Mid-Retirement, highlights the challenges faced by mid-retirees navigating the retirement landscape. The research surveyed 1,000 mid-retirees (aged 65-75) who have a private pension, are on a moderate retirement income, and have not taken financial advice.

Almost two thirds (64%) of mid-retirees admit they have not spoken with family or friends about managing their financial affairs, should they become unable to do so independently, with 81% saying they don’t have a lasting power of attorney in place.

Nearly four in ten (39%) have not yet considered how they will manage their finances as they grow older, particularly into their 80s or 90s. Whereas only a little over a third (36%) know all the details of their partner’s pension and more than four in five (84%) in a couple have not checked to see if their partner has nominated them as a beneficiary for their pension.  

Exclusive modelling for the report, by the Pensions Policy Institute (PPI), reveals that while homeowner couples may be able to meet what is considered the minimum income standard in retirement, the death of one partner can significantly reduce household income, potentially leaving the surviving partner financially vulnerable. This highlights the importance of making informed decisions in later life and the value of approaching these conversations together, to ensure long-term financial security for both partners.

The report recommends a new retirement income approach to ensure retirees have a plan for the whole of their retirement journey. A ‘flex first, fix later’ strategy is designed to provide pension savers with a sustainable income for life - combining pension drawdown in the early retirement years, with a later-life annuity – and offering the potential to provide better outcomes^[2].

Emma Douglas, Wealth Policy Director at Aviva, says: “Our findings suggest that mid-retirees might be in danger of drifting into later-life retirement without a clear financial plan, which could leave them vulnerable, especially in the event of cognitive decline or the loss of a partner.

“While there is no one-size-fits-all solution, taking the time to understand your household’s retirement income and what would happen if you or your partner’s circumstances change, is crucial to better financial planning. Openly discussing your plans and wishes with family helps to ensure everyone feels informed and reassured that everything is in place.

“At Aviva, we think it’s key that mid-retirees have access to better financial guidance in retirement. That’s why we’re working with Age UK to consider the feasibility of a mid-retirement MOT.  This could not only offer guidance and support, but it would also act as a financial review that could cover topics like estate planning, fraud prevention, access to state benefits, and managing finances in the event of cognitive decline.”

Caroline Abrahams, Charity Director at Age UK, added: “Having a broad understanding of your household finances, including pensions, can make a huge difference to couples as they age.  Being able to plan ahead can improve people’s ability to take sensible spending decisions while helping prepare for the worst – for example the extra costs of ill-health and even bereavement.

“Dealing with the ‘sadmin’ following a bereavement can be extremely distressing, however this difficulty can be reduced if both partners are aware of their spouse’s finances. In particular, many women can find themselves significantly worse off once their husband dies, especially as household incomes often fall significantly, so hopefully an open discussion about money and pensions can be hugely beneficial.

“We would encourage everyone to plan ahead, including looking at taking out a lasting power of attorney and budgeting for some of the costs that can arise in later life.”

People can call Age UK’s Advice Line on 0800 678 1602 for more information.

Aviva’s top tips for managing your pension throughout retirement:

1. Understand what will happen to your retirement income if either you or your partner dies:

• Check with your pension provider whether you have a named beneficiary on your pension policy.
• Understand whether your pension would end with you or whether it will continue to pay out to your partner.
• Consider setting up a lasting power of attorney to manage finances if you or your partner become ill or incapacitated.

2. Review your pension plan regularly:

• Ensure your pension strategy still aligns with your needs and goals. As your life changes, so should your financial plan.

3. Consider all your sources of retirement income:

• Don’t rely solely on one source of income. Consider the overall picture for your household – this could include any savings, investments, and state benefits.

4. Have a conversation about potential healthcare and long-term care costs:

• Consider any future medical and care expenses and explore insurance or savings options to cover them.

5. Talk to your loved ones:

• Open conversations about your financial wishes and plans can help avoid confusion or stress later. Knowing where important paperwork and information about financial products or services are stored can give peace of mind to those closest to you.

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Media Enquiries:

Kate Hurren | Aviva Press Office | 07800 692 548 | katy.hurren@aviva.com

Shelley Kernaghan | Aviva Press Office | 07800 692 266 | shelley.kernaghan@aviva.com

Anne-Marie Doohan | Age UK press office | 020 303 31430 | anne-marie.doohan@ageuk.org.uk

References:

^1. _{The report was published by Aviva and Age UK in May 2025. It is based on an online survey by Ignition House, a research consultancy specialising in market research and consulting. It was conducted with a nationally representative sample of 1,000 UK people aged 65-75 years old with a non-advised defined contribution private pension, (excluding people in receipt of state pension only) who are on a moderate retirement income, and don’t pay for financial advice or have a final salary pension over £20,000 per year. Research was conducted from October to November 2024. [↑]}

^2. _{Aviva is developing its own ‘flex first, fix later’ product called ‘Aviva Guided Retirement’. It is an innovative retirement strategy that aims to provide its workplace pension members with a sustainable income for life. It focuses on those customers taking a non-advised route into retirement. It will also help to support retirees with the complex decisions they face when it comes to retiring and will provide a guided framework that supports their changing needs throughout their retirement journey. [↑]}