Pre-retirees have worst savings record - Aviva

People nearing state retirement age have the lowest savings of all over-55s, according to Aviva.

In its first Real Retirement report, Aviva studied the finances of the UK's over-55s, with its research suggesting growing debt and low savings point to a gloomy picture for retiring people.

The current generation of retiring and long-term retired has a higher incidence of homeownership, lower debts and more savings than the pre-retirees, according to Aviva's first Retail Retirement Report.

The report reviews the finances of the three ages of retirement broken down into pre-retirees (55-64), retiring (65-74) and the long term retired (over-75).

Pre-retirees have the lowest savings, an average of £8,593, lowest incidence of home ownership and largest average mortgages, with around £16,694 outstanding.

Two fifths of pre-retirees save nothing per month and 20% still owe more than £75,000 on their mortgage.

There is also a growing disparity between the richest and poorest in all age groups.

Again this gap is at its most egregious in the pre-retirees so while the average savings for this group is £57,002; the median - which represents a more typical saver - is a mere £8,593.

The report was based on a survey of 1,200 individuals throughout the UK.