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Wednesday, September 28, 2011

September issue of the Aviva Retirement report is published




Aviva, a bit like Saga, has established itself as one of the best regular commentators on the state of older consumers - well certainly the state of their financial affairs.


The September issue doesn't make happy reading. I have chosen to comment on one of the concerns - funding care costs - I could have chosen another half a dozen equally horrific problems.


The main reason behind the apprehension concerning long-term care starts with the fact that over half (53%) have no plan in place to meet these costs. Indeed, just 2% of over-55s say they have long-term care insurance with others preferring to rely on savings and investments (13%), releasing equity (9%), their pension fund (3%) and on family assistance (3%). 


There is a bit of problem. The average cost of residential care of £25,953 per year and the average over-55 having just £10,468 (Sep 2011) in savings and an annual income of £1,216 (Sep 2011) per month.


You don't even need a worthless GCSE in maths to see there is a  bit of a shortfall. I recommend that you have a look at this report. Dick Stroud 

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