Over 55s need to save more for retirement

It's good that nearly half of all people over 55 look forward to a retirement when they will be able to take up new challenges and opportunities. In fact, according to insurer Aviva, 23 per cent say that they would like to travel the world. Unfortunately however, many in this age group have not managed to save enough money to do so.

In fact, over half of those coming up to retirement have saved under £30,000 towards their pension. This is a key figure as it would purchase an annuity which would give the holder a modest monthly income of £165. However, people who have saved even less seem confident anyway of having a comfortable retirement.

Almost half of those surveyed said they would like to pursue their hobbies, and 60 per cent hoped to use these to generate income. Just less than half hoped to spend more time with their families while 62 per cent intended to get fit.

"At retirement" director for Aviva, Clive Bolton said: "Babyboomers have enjoyed certain benefits such as rising house prices and final salary pension schemes, but unfortunately many may still struggle to fund the retirement lifestyle they desire.

"In the run-up to retirement, people should think about how they want to spend their days, and in reality, how much this will cost."

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