According to the first `Real Retirement` report from insurer Aviva, two fifths (40%) of people approaching retirement aren`t saving any money to help support themselves when they leave work, with many of these `pre-retirees` having considerable levels of debt, the Guardian reports. The report, which reviews the financial situation of people in three stages – `pre-retirees` (55-64), `retiring` (65-74) and `long-term retired` (over 75), has shown that people in the 55-64 age group are, in general, `much worse off than people who have already reached state pension age`. As the Guardian puts it, `the report paints a picture of a divided Britain with a growing gap between the super rich and the very poor, with more than one in five people struggling to survive on less than 750 a month and an increasing number entering retirement saddled with debts.` More than 25% of 55-64-year-olds still have a mortgage, owing 52,535 on it on average, and one in five still owe more than 75,000 on their property. For most people over the age of 55, non-mortgage debt is not a big concern, as the typical household has no outstanding credit card debts, loans or overdrafts. The mean unsecured debt in this particular age group is just 2,336, while those carrying the most debt are those who also have a mortgage.
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