40 per cent failing to save before retirement

TWO in five people are failing to make any regular savings as they approach retirement, according to a new study. The Real Retirement report by Aviva found that 40 per cent pre-retirees – those aged between 55 and 64 – save nothing each month while a fifth in the same age band still owe more than £75,000 on their mortgage.

Of those aged 55 or over, pre-retirees have the lowest savings, the lowest home ownership levels and the largest average outstanding mortgage, at 16,694. Three quarters of those aged between 55 and 64 are worried about the rising cost of living, unexpected expenses and plunging savings returns.

The report suggested that with a fifth of pre-retirees concerned about retirement and the prospect of redundancy, retirement is increasingly viewed as a worrying period of financial upheaval.