Aviva Real Retirement Research

January 2014

Scotland

Income and expenditure across the UK

1,704 1,395 1,625 N. Ireland 1,280 1,666 1,341 1,309 1,249 1,296 Yorkshire
Key UK

1,319 N. West N. East

1,545 1,357

Income Expenses

1,181

1,229

E. Midlands 1,757 1,607 1,397 1,416 1,583

1,475

W. Midlands East Anglia

Wales S. West 1,544 1,285

1,800

London

1,398 S. East

1,562 1,417

Sources of income for the over 55s

Employer pension 39% Rental income 3% 14% Benefits inc. unemployment

Personal pension 32%

Spouse pension 22%

State pension 62%

Investments/ savings 25%

Wages/ other earned income 38%

Other 3%

1% 9% Annuity

Money from family

What the over-55s spend their monthly income on (percentage of income spent)
2% Clothing and footwear 2% Furniture, appliances and pet care 2% Leisure goods such as sports equipment or CDs 3% Eating out or take-aways 3% Postage, telephone calls and internet connections 4% 5% 7% 9% Fuel and light 14% Debt repayment 16% Food 23% Housing (mortgage or rent) Fares and other travel costs Motoring Entertainment, recreation and holidays

Extra outgoings cancel out rising incomes:

e Monthly incom 1,444 e Monthly incom 1,545
Monthly spending 1,241

Monthly spending 1,357

December 2012
Increase in monthly income* Increase in monthly spending*
*between December 2012 & January 2014

January 2014
101 / 7% 116 / 9%

Over-55s typical savings pots have fallen in the last twelve months
14,544 7% 13,528

December 2012

January 2014

Housing wealth - mortgage debt among over-55s has reached a record high

ases incre s e g ortga on m g n i nd utsta ge o a r e Av

18% of all over-55s are mortgage holders 64,229

79,198 59,541

May 2013

December 2012

January 2014

Unsecured borrowing in the over 55s has fallen during the past 12 months

December 2012 May 2013 October 2013 January 2014

23,676 23,188 19,939 16,853

This improvement has been driven by the two younger age groups reducing their average unsecured debt

Ages 55-64 unsecured debt dropped by 23% to 16,594

Ages 65-74 unsecured debt dropped by 35% to 20,934

Future outlook - fewer over-55s are worried about the future, compared to a year ago
80% 76% A year ago Now

28% 21% 11% expect their standard of living to deteriorate in the next three months
106005369 01/2014 Aviva plc

9%

worried about the rising cost of living

worried about the loss of government benefits