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Yorkshire nest eggs crack under pressure, says Aviva

Over half of over-55s in Yorkshire wish they had put away more money on a monthly basis as their saving pots are eroded by unsecured debts, according to a the latest Aviva Real Retirement Report.

The study also reveals that more than one in four think that having enough money to live comfortably is the key to a happy retirement, while a similar proportion pine for the financial freedom to enjoy more hobbies or holidays.

The 54% of Yorkshire over-55s who wish they had saved more compares with 50% nationally. An additional 45% in the region would also advise their younger selves to contribute to a personal pension earlier – six percentage points more than the national average.

Yorkshire’s regrets and recommendations demonstrate that financial stability tops the wish lists of most over-55s here. Indeed, over a quarter (27%) agree that having enough money to live comfortably is key to a happy retirement, while 29% point to the freedom of being able to indulge in hobbies or holidays as the most important benefit of being financially stable in retirement - the highest proportion of all UK regions.

However, financial security is like a long way off for many of the region’s over-55s, where the average savings pot for the age group has plummeted to £9,998 this month, compared to £14,999 a year ago (September 2012). This is a fall of 33% and is £4,186 less than the current national average, £14,184.

Meanwhile, the proportion of over-55s in Yorkshire who currently have no savings at all has increased to 20% - up from 11% in September 2012. The percentage with less than £500 has also risen, more than doubling to 29%, from 14% in September 2012.

The apparent raiding of Yorkshire savings pots seems to be explained by a significant reduction in the total amount of unsecured debt of over-55s here. A year ago, the average individual in this group owed £29,419 (September 2012), which has fallen significantly to £11,716 - a drop of 60%.

Meanwhile, monthly expenditure on debt repayment in the region has risen to £167 from £133 two years ago (September 2011). This has meant that over-55s here are cutting their debts down by an extra £408 each year

Clive Bolton, managing director of Aviva’s At Retirement business, said: “It’s fantastic that over-55s in Yorkshire have remained so dedicated to debt repayment and they’ve seen a significant decrease in the total amount they owe as a result.

“However, this appears to have been at the detriment of their savings pots, as a fifth of them now have no funds in their retirement fund. As a result, many are regretting not saving more when they had the chance as there is no safety net to fall back on should any unexpected expenses suddenly arise.”

This was posted in Bdaily's Members' News section by David Gatehouse .