The next time you read a statement about how well-off the over 60s are and how they own so much wealth, I would like you to remember a couple of things.
Most of that wealth is in the place they live. Most of them will have totally inadequate retirement pensions (other than those from the public sector where their pensions are paid from current taxation - for now).
The chart shows the the distribution in size of the pension pot and how it has changed with time. The good news is that it has got a bit bigger. The bad news is that it is totally inadequate.
I suppose the good thing is that most older Brits know so little about their retirement finances that they don't realise how poor they will be.
Read this quote from the annual pension survey from LV.
One in five of all respondents haven’t heard of any retirement income products or even annuities. What’s more less than half have heard of fixed term annuities, only around a quarter have heard of income drawdown and only 30% know of investment linked annuities.
What is even more concerning is that even in the ages we would expect to have the highest awareness i.e. pre, at and post retirement ages of 60-64 and 65-69 the awareness is barely any higher if at all.
So if your want to take advantage of the marketing opportunities presented by population ageing it is best to start from a position of knowing that large swathes of retired people will be ultra price conscious. There will be others, about 20%, that will be able spend on just about whatever they want. Better make sure you know how best to target this group. Dick Stroud