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Aegon UK launches Retiready

Edinburgh, UK, April 30, 2014

A new report by Aegon UK found that only 7 per cent of the UK population is close to being ready for the retirement that they want. In response, Aegon UK has launched a new digital service, Retiready, to help get people back on track.

Based on a survey of over 4,000 people, the UK achieved an average readiness score of 52 out of 100, revealing that most are unlikely to match their retirement expectations with their income reality. Only 7 per cent achieved the readiness score of 70, the level required to demonstrate they are close to being on track for the retirement they hope for. Retiready retirement readiness report

Unrealistic expectations

The Aegon UK Readiness Report found that, on average, the UK wants an annual retirement income of £35,000 (approximately EUR 42,000), but at their current trajectory they are set to see just £12,000 (approximately EUR14,400) a year. This highlights a huge gap between expectation and retirement reality. People are simply not saving enough to have the retirement they would like.

In response to the findings, David Macmillan, Managing Director, Aegon UK commented: "It's time for the UK to get real, and for the pensions industry to lead the way in helping people find solutions. Showing people how to take small steps that will make a difference is vital. We must empower, rather than frighten people, and help them take control of their future finances. Retiready is an invaluable digital service for all those preparing themselves for later life and represents a huge leap forward for Aegon and the industry as a whole."

Launching Retiready

Retiready is designed to help people consider their retirement ambitions and understand if their overall readiness for retirement is on track. Available to use on mobile, the service demonstrates how adjustments to pension contributions, planning and money management can make a big difference.

 

Developed together with customers, Aegon's new Retiready digital service allows UK consumers to determine their readiness for retirement with a unique score out of 100. This gives consumers an indication of how on track they are in meeting their retirement goals. If they're not on track, Retiready provides easy-to-understand tools and digital coaching to help them make informed choices to improve their score and take control of their financial future.

In addition to keeping track of retirement readiness, the service provides access to a Retiready Pension, offering one of four straightforward, low cost investment funds, or a Retiready ISA for those who want 24/7 digital access to information about their pension and retirement savings.

Wake-up call

Sue Hayward, Personal Finance and Consumer Expert, concludes that, "even for those of us who are saving, it's rarely a case of being able to sit back and do nothing. The news that 42 per cent of us have never checked the performance of our retirement savings should be a real wake-up call."

Written by: Aegon