Money tops older Britons' worry list

Older people worry more about not having enough money to survive than having a companion during retirement, an insurance company report suggests.

This sentiment applies to one in four people aged over 55, according to Aviva.

The report disproves the claim that older people have been largely unaffected by the recession.

Caroline Abrahams, Charity Director at Age UK, pointed out: 'This report dispels the myth that people aged 55-64, the so-called baby boomers, have sailed through the economic crisis and are financially thriving.

'Instead it reveals that many are struggling to stay afloat.'

Financial security is the highest priority

Aviva's Real Retirement report indicates that 27% of older people regard financial security as the single most important factor in their retirement.

Around two-fifths say the crucial aspect of retirement is having good health (38%) and one-sixth believe having a partner with whom to share their later years is most important (17%).

One in eight say that having a good family life is key (12%), while just 3% place the priority on having interesting hobbies.

Of those who have a yearly income of less than £15,000, nearly three times as many regard having enough money to live on (34%) as more important than having a partner (12%).

The difference begins to reverse the wealthier people are, the report suggests, although some whose income exceeds £30,000 a year still regard financial security as the crucial factor for life in retirement.

A significant proportion of people aged 55-64 are unable to save any money at all for when they retire (40%), while those who do manage to put away £33 a month on average.

Many have sat and watched their savings being eaten by the economic crisis, as the unprecedentedly low base rate of interest erodes value.

Only a third of people aged over 75 are able to draw money from savings and investments (34%), dropping from nearly half just a year ago (45%), according to Aviva.

Aviva says it interviewed around 2,000 people before compiling its report.

Copyright Press Association 2013