LV= reports FREDs are frantic about the credit crunch and fears
of recession
Released
on: December 17, 2008, 6:01 am
Press
Release Author: Lucy Pope
Industry:
Financial
Press
Release Summary: LV=, the investment, pensions and insurance group,
has revealed that the credit crunch, stock market volatility,
and fears of a recession are growing concerns for the nation's
pre-retirement population
Press
Release Body: Six months after the LV= 'State of Retirement'
report* first identified the rise of 'FREDs'
- people approaching retirement who are Facing Retirement
Earnings Doubts - new research shows that 69% of pre-retired
people are now more concerned than ever about their financial
security. This equates to 7.1m people**, an increase of 600,000
since the first LV= 'State of Retirement' report was published
in May 2008***.
The
rising cost of utility bills and food prices remains the biggest
worry for people facing retirement, with 71% of those surveyed.
However, this is marginally down on six months ago (76%), whereas
worries regarding the credit crunch, stock market volatility,
and fears of a recession are now all on the increase.
The
credit crunch has become a concern in the last six months for
an additional 2.1m pre-retired people, making a total of 4.2m.
In addition, a further 1.8m people have become more anxious about
a recession and a further 1.5m about stock market volatility,
totalling 4.5m and 3.1m pre-retirees respectively. Over 50s are
also more concerned about job insecurity. These three issues have
increased in importance over the last six months, further contributing
to the growing number of FREDs.
Despite
the increase in those admitting to being more concerned about
their financial situation in retirement, 20% are not saving anything
towards their retirement, while 51% have not increased the amount
they are saving. Of the 10% who have increased the amount they
save each month, the average is £225 a month, £35
more than the average monthly amount from the survey six months
ago.
Mike
Rogers, LV= group chief executive,
said: "In just six months the number of FREDs has increased,
indicating that pre-retired people across the UK are more concerned
than ever about their retirement finances. Unsurprisingly, the
credit crunch, stock market volatility, and fears of a recession
are now huge issues for these people, along with the perennial
concern about the rising cost of living."
The
latest LV= report also shows that the number
of people approaching retirement who haven't taken any form of
financial advice about
retirement
planning has increased to 60%, compared with 56% previously.
Mike
Rogers continued: "The FREDs of this world have
at least received some small comfort from the recent Pre-Budget
Report, with the announcement of increases in both the state pension
and pension credit. This goes some way towards bridging the gap
between income expectation and reality in retirement, that our
survey revealed is an issue for many people."
- ends -
Notes to editors:
All figures, unless otherwise stated, are from online Opinium
Research
* Sample size was 1042 adults over the age of 50 years. Fieldwork
undertaken 14th - 19th April 2008.
** The over 50s population in the UK is 21,011,000 (Source: Population
projections by ONS, 2008). According to the research, 49% of those
people are not retired. The research also shows that 69% (7.1m
people) agreed they have become more concerned lately about retirement
finances.
*** Sample size - 1655 adults over the age of 50 years. Fieldwork
undertaken 3rd - 9th April 2008.
About
LV=
LV= is a registered trade mark of Liverpool Victoria Friendly
Society Limited (LVFS) and a trading style of the Liverpool Victoria
group of companies.
LV=
employs more than 3,500 people, serves more than 2.5 million customers
and members, and manages around £8 billion on their behalf.
LV= is also the UK's largest friendly society (Association of
Friendly Societies Key Statistics 2008. Total net assets) and
a leading mutual financial services provider.
LVFS
is authorised and regulated by the Financial Services Authority
register number 110035. LVFS is a member of the ABI, AMI, AFS
and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.
Web
Site: http://www.lv.com/
Contact
Details:
For further information please contact:
Lucy Pope
Press Office
LV=
County Gates
Bournemouth
BH1 2NF
01202 502 204
lucy.pope@lv.com
2012
