According to the Aviva Real Retirement Report issued this month, those approaching retirement (55-64)  have finances in worse shape than those either aged 65-74 or over 75.

The report, which reviews the finances of three ages of retirement: pre-retirees (55-64); retiring (65-74) and long-term retired (over 75), revealed that:

• Two-fifths (45 per cent) of 55-64s are saving nothing per month
• One-fifth of 55-64s still owe more than £75,000 on their mortgage
• There is a growing disparity between the haves and the have-nots

Pre-retirees (55-64) have the lowest savings (£8,593), lowest incidences of home ownership (76 per cent) and largest average mortgages (£16,694).

There is a wide divergence between the richest and poorest in all age groups.  This gap is at its largest in the younger age group. So while the average amount of savings for this group is £57,002, the median, which represents the typical saver, is a mere £8,593.  This is because a small number of very rich people disguise the relative poverty of a large minority.  This difference is less severe for the retiring and the long-term retired.

Across the board, the biggest concern for the over-55s is the rising cost of living (74 per cent), followed by unexpected expenses (45 per cent) and the falling retirn on savings (38 per cent). 

Pre-retirees are concerned about retiring (19 per cent) and redundancy (12 per cent) which, according to Aviva, highlights the fact that many people do not see retirement as the ‘golden years’ but as a worrying time of financial and social change.