Aviva, in collaboration with charity Age UK, has launched a mid retirement MOT pilot programme which looks to ensure that savings last longer.
An Aviva and Age Uk report found only half (48 per cent) of mid-retirees are confident they are on track to make their private pension savings last for life. It also found many people in their 70s are navigating some of the most complex financial decisions of their lives with little or no structured support.
Aviva and Age UK research found that almost two thirds (65 per cent) of mid-retirees said there is not enough support to help them manage their financial needs.
To help close this guidance gap, Aviva and Age UK’s mid retirement MOT pilot will aim to provide retirees with a practical, holistic check up on their finances and wider wellbeing. It combines telephone support through Age UK’s National Advice Line with face-to-face sessions delivered by local Age UK partners, either in people’s homes or at local Age UK offices. The pilot has been co-designed with local Age UK partners in Norwich, York, Bristol and Sheffield.
Launching later this year and running over 12 months, the pilot will aim to support mid retirees, between 72-76 years old and with a defined contribution pension, looking to help them better understand and plan for a range of later life considerations, including whether their pension savings are likely to last, and what state support they might be entitled to.
Michele Golunska, managing director of Wealth at Aviva, says: “Retirement can last much longer than 20 years, but support often drops away once people stop working. As the Pensions Commission considers how to improve retirement outcomes for future generations, this pioneering mid-retirement MOT pilot will provide valuable insight into the support people need to look after their finances in later life.”
Aviva and Age UK believe valuable insights from the pilot could help shape a blueprint for a government-backed national mid retirement MOT to help ensure future mid-retirees get the right support.
