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8/6/2019 Aviva UK: The Aviva Family Finances Report, Spring 2011
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The Aviva FamilyFinances ReportSpring - 2011
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The typical UK family
While 84% of the UK population lives as part of a family, it is
no longer safe to assume there is such a thing as a traditionalfamily unit. Aviva recognises there are various different types of
modern families (see page four for groups tracked) and looks at
their individual approaches to finances including wealth, debt
and expenditure.
The Aviva Family Finances Report 3
In addition, this seasons report looks at how UK families are working with
their employers to save for retirement and how the introduction of pensions
auto-enrolment in 2012 will be greeted by the millions of UK citizens who
make up these family units.
Overview:
Income Salary increases see monthly family income rise by 6% to 2,062 (pg 5).
Expenditure Significant annual inflation hits major family costs food (+5.09%), fuel and
light (+6.08%) and motoring (+11.34%) (pg 7).
Wealth Fewer families have no savings (28% May 2011 vs. 33% Jan 2011) as peoplestep up to the challenge (pg 9).
Housing More families own their own homes with a mortgage as lending increases, but
house prices fall (pg 10).
Debt Focus on saving sees average unsecured debt increase to 5,878 (pg 11).
Look to the future One in five families is concerned about potential mortgage rate
increases in the near future (pg 12).
Employee pensions Just 28% of full-time employed family heads in the UK has a
company pension (pg 13).
Pension contributions More than one in five (26%) would sacrifice 5% of their salary if
their employer matched their contributions (pg 14).
Auto-enrolment Encouragingly, 55% feel it would be silly not to join a company pension
if their employer also contributed. It is concerning however that one third (35%) feel they will
either opt out or dont yet know what theyll do when automatically enrolled (pg 14).
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1. Living in a committed
relationship* with no plans
to have children
2. Living in a committed
relationship with plans
to have children
3. Living in a committed
relationship with one child
4. Living in a committed
relationship with two
or more children
5. Divorced/separated/widowed
with one or more children
6. Single parent raising one
or more children alone
* For the purpose of this report, a committed relationship is defined as either one where people are married or living together.
The UK modern family
Thirty years ago, it was relatively safe to assume that a nuclear family
consisted of two parents and one or more children. However, as society haschanged, this is no longer the case. In this report, Aviva looks to recognise
the most common types of modern family based on customer profiles and
Government data.
The Aviva Family Finances Report 4
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Average income
The median monthly net income of a UK family (i.e. the family in the middle of the
sample) is now 2,062 (Jan 2011 1,937). This is a six percent increase on the
figures recorded in January and seems to indicate that after several years of austerity,
businesses may be looking to reward their staff with salary increases.
Indeed, there has been a marginal fall in those who earn below 750, from 9% (Jan
2011) to 8% (May 2011) and those who earn between 751 and 1,000 from 10%
(Jan 2011) to 8% (May 2011). We anticipate that with the national minimum wage
due to increase by 15 pence to 6.08 in October 2011, this group will also receive a
boost later in the year.
Income of those in committed relationships who have childrenor plan to have children
Of the family groups tracked, single parents receive the lowest monthly income (874).
This fell from 906 (Jan 2011) earlier in the year and seems to indicate that for this group where 61% receive some type of benefit Government cuts are starting to bite.
At the other end of the scale, those who are in a committed relationship and want
children, have the highest monthly income (2,338). This is a seven percent increase
since January 2011 (2,187) and seems to indicate that dual-income households
without children have benefitted most from employers generosity.
In addition, the number of families with a household income of more than 2,500 has
increased by four percentage points from 34% (Jan 2011) to 38% (May 2011).
Income encouragingincrease in levels of income
The Aviva Family Finances Report 5
Couples with plansto have children
Couples withone child
Couples withtwo children
Single, raisingone or
more children
Married/committed relationship types
MonthlyIncome()
0
500
1000
1500
2000
2500
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Family income sources one in five rely on state benefits
As part of the report, Aviva has looked at the various types of income that typical UK families have access to. In terms of these
sources, there is a clear reliance on the primary income earners full time salary which provides 68% of families with an income
compared to the full time income of the secondary earners (36%).
Eighteen per cent say part-time employment by one or another heads of the household contributes to monthly income. This
has largely remained the same since January although the percentage of people deriving income from a part-time job has fallen
marginally (-1%) possibly as work associated with the festive season has dried up.
Outside salaried work, state benefits (23%) provide some form of income to more than a fifth of UK families. Single parent families
(61% May 2011) and those headed by divorced/widowed/separated people (42% May 2011) are most likely to claim some form
of benefits and also have the lowest median income.
However, while the number of single parents (median income 874) claiming benefits rose by seven percentage points, the
number of divorced/widowed/separated parents (median income 1,138) doing so fell by the same amount over the period.
This appears to suggest that even before the introduction of the changes outlined in the Comprehensive Spending Review
the Government is looking to cut benefits for those who are slightly better off, while at the same time direct them to the lowest-
income groups.
While some need state support to survive, others have benefitted from increased competition in the savings market which has
seen the launch of a selection of products paying competitive interest rates. The number of families who derive some income from
savings hit 7% (4% Feb 2011).
In addition, with 15% of families surveyed in the study saying they own a second property (see page 10), it is no surprise to see that
income from a rental property was also cited by some families (2%) as boosting their income.
The Aviva Family Finances Report 6
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Over the tracked period, housing remained the largest single expenditure for UK families accounting for 22% of their monthly
outgoings. While the majority of tracked family groups spend just over a fifth of their income on housing, divorced/widowed/
separated (27%) and single parent (29%) families spend significantly more.
Food is the next largest expense (11%) for the average UK family and there has been a one percentage point increase from January
2011. This is lower than might be expected especially as annual inflation on food has risen 5.08%. However, with analysts
reporting that lower-cost supermarkets are starting to grow their share of the UK market, it appears that many families are down-
shifting their spending on food and cutting back on luxuries.
The average UK familys third largest monthly expense is fuel and light (6%) and there has been a considerable annual inflation
(+6.08%) when compared to January 2011 (+2.42%). This is even more extreme when considering that annual inflation to
November 2010 was actually negative (-1.88%).
Type of expenditure Average amount spent as
a percentage of monthly
income May 2011
Average amount spent as
a percentage of monthly
income Jan 2011
Housing (mortgage or rent) 22% 20%
Food 11% 10%
Debt repayment 10% 8%
Nursery care / out of school care 10% 9%
Fuel and Light (e.g. gas and electricity bills) 6% 6%
Motoring 6% 5%
Entertainment, recreation and holidays (Leisure Services) 5% 4%
Public transport fares and other travel costs 4% 4%
Fees for childrens activities 4% 4%
Clothing and footwear 3% 2%
The Aviva Family Finances Report 7
Expenditure inflation isimpacting levels of expenditure
UK family finances are under pressure as we see inflationary increases on
the most basic costs housing, food, fuel and light. However, while some
people are undoubtedly struggling, most (96%) have some additional
disposable income. Therefore it is important that they seriously consider
how this can be used to secure their families futures.
Paul Goodwin, head of pensions marketing, Aviva
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While not all households have a car particularly those in inner-city areas those that do spend 6% of their income on motoring.
While the Government did announce a one pence cut in fuel duty in the recent budget, this has done little to alleviate the pressures
on UK motorists according to the RAC.
Indeed, soaring petrol prices mean families will be feeling the 11.34% rise in annual inflation on fuel costs and we are likely to see
people cutting back on unnecessary journeys or using public transport more. However, we have seen annual inflation of 4.21% on
this mode of transport, so costs have risen here too.
While the average family only spends 3% of their income on clothing and footwear, they are likely to have found this significantly
more expensive than the same time last year, due to the 12.25% annual inflation rate.
While 90% of families surveyed do not pay private school/tuition fees, for those that do, they are a significant drain on familyfinances, accounting for 12% of monthly expenditure. Far more common for all families (and only marginally less expensive) is the
monthly cost of nursery/after school care, accounting for 10% of monthly expenditure, and childrens activities (4%).
It is interesting to note that for single parents who are raising one or more children, nursery/after school care can account for up
to 25% of their income. This raises the thorny issue of whether they are financially better off working or claiming benefits, and
therefore highlights the need for affordable childcare options.
Finally, UK families are spending an average of 10% of their monthly income on debt repayment this is two percentage points up
from January 2011. This highlights the importance that indebted families place on climbing back on to a secure financial footing.
Comparison of debt by family type
The Aviva Family Finances Report 8
Family Type
TotalDebt
0
20000
40000
60000
80000
100000
120000
Committedrelationship, noplans to have
children
Committedrelationship
with plans tohave children
Married/committedrelationship
with one child
Committedrelationshipwith two+children
Divorced/separated/widowed
raising onechild alone
Single raisingone+ children
alone
Debts on credit cards, loans & overdraft
Mortgage Debt
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Buy-to-let mortgage
Fixed-term bonds
Income Protection
Critical illness cover
Private Health Insurance
Stocks and shares investments
Private pension
Premium bonds
ISA (Cash or Shares)
Employer pension
Life Insurance
Mortgage on your primary property
Basic bank/building society savings account
3%
6%
11%
13%
13%
14%
17%
22%
34%
34%
38%
47%
80%
The mean average that families have in savings and investments (excluding pensions and property) is 16,125 (up from 15,766
Jan 2011) and they save 145 per month (122 Jan 2011). These amounts seem robust, but are skewed by the relatively few (3%)
families who claim to have more than 100,000 in savings.
In actual fact the typical family (i.e. the family in the middle of the sample) is significantly less prepared having just 1,163 (849
Jan 2011) in savings and saving 32 (22 Jan 2011) per month.
Nevertheless, these figures show a clear picture of UK families stepping up to the challenge and looking to build a financial safety
net in what is an uncertain economic and political environment. Indeed, we have seen the number of families with no savings drop
from 33% (Jan 2011) to 28% (May 2011) and those who save nothing each month fall from 40% (Jan 2001) to 37% (May 2011).
However, while more families have shown a keenness to start saving since the start of the year, they have not had chance to makesignificant progress. The percentage of people with savings of less than 500 has risen to 15% (13% Jan 2011) as people start to
build small pots but have yet to build a big cushion.
In addition, the typical family (i.e. the median) within the two more vulnerable groups single parent families (51% save nothing) and
the divorced/widowed/separated (65% save nothing) continue to save nothing each month. At the other end of the scale, those who
are in a committed relationship and want children are actively working towards this goal and save 81 per month (55 Jan 2011).
Product mix basic products dominate product holdings
The most common products that families use to save are basic building society / bank savings accounts (80%), followed by a cash/
share ISA (34%), or premium bonds (22%). However, some families generally the more affluent also have stocks and shares
investments (14%), fixed term bonds (6%), or a buy-to-let property (3%).
It is interesting to note that the number of families with an ISA has only increased marginally from January (33%) to May (34%) as it might
have been expected that the tax year end would encourage more people to take advantage of their 2011/2012 tax allowances. However, it
appears that the easy access nature of basic savings accounts is more appealing to ordinary savers than the tax breaks available.
The Aviva Family Finances Report 9
Family wealth positiveincrease in savings habits
It is good to see that four out of five UK families have a basic bank or building society
savings account. However, while these figures are heartening, the fact that 20% dont
have a savings account is very worrying. While economic conditions are tough, it isimportant that where possible, families work to put aside something each month.
Paul Goodwin, head of pensions marketing, Aviva
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The majority of families in the UK own their own home (average
value 205,144) with a mortgage (49%) or outright (14%). In
addition, 23% live in private rental accommodation and 12%
rely on social housing.
The value of the average family home fell by 1% from
207,548 (Jan 2011) to 205,144 (May 2011). This is 26%
above the average UK house price in April (165,609) which is
potentially because families due to their size are likely to live
in larger properties than single people. The number of families
with a mortgage rose from 47% (Jan 2011) to 49% (May 2011)
as mortgage lending climbed to an eight month high in March.
This increase in the number of new mortgages saw the mean
mortgage borrowing increase from 89,018 (Jan 2011) to
97,408 (May 2011).
It is interesting to note that the incidence of families with
a mortgage increased for all groups except for those in a
committed relationship who dont have children 46% (Jan
2011) to 41% (May 2011). However, we saw an increase in
the number of people within this group who had paid off their
mortgage 20% (Jan 2011) to 23% (May 2011) suggesting
that they are older/have fewer financial commitments and seepaying off their mortgages as a priority. This theory is backed
up by the fact that they are among the groups with the highest
amount of housing equity (140,944).
In addition to their main residential property, 15% of families
surveyed claim to own a second property worth on average
182,384 (May 2011). The mean mortgage on the property is
140,748 and the mean equity is 41,637. While this figure
seems high, it may be because some respondents families have
inherited a property or that couples now living together have
each owned a property in the past which they have held on to
possibly while the housing market is in a slump.
The Aviva Family Finances Report 10
Housing wealth property remainspeoples biggest financial asset
For most people, residential property will be the biggest asset that they
ever own. However, as we have seen over the last few years, what goes
up may come down. Therefore, it is important that people ensure they are
using other products to ensure their familys security as well.
Paul Goodwin, head of pensions marketing, Aviva
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While the typical UK family has concentrated on increasing their savings cushion, they have not necessarily looked at tackling their debts
(excluding mortgage debt). The average credit card/loan/overdraft debt has increased from 5,360 (Jan 2011) to 5,878 (May 2011).
Comparison of debt by family type
The main driver behind this increase appears to be the squeezed middle. Indeed, the largest increases in average debt have been
seen by those families in a committed relationship with one child (4,404 to 5,452) or two or more children (5,248 to 6,200).
Each family will have their own unique reasons behind their debt but it is safe to suggest with this group likely to find credit
more readily available than other groups, an unexpected expense such as a new car or family holiday may account for this
increase. In addition, those in a committed relationship with two or more children (17%) are also the most likely to have more than
10,000 of unsecured debt.
At the other end of the scale, those in a committed relationship who do not want children have paid down their debts (-15%
to 5,736) and we have seen a four percentage point drop in those who owe more than 10,000 to 9%. Clearly for those with
surplus income, debt repayment is a key goal.
While divorced/widowed/separated parents (debts of 4,992 May 2011) and single parents (debts of 4,696 May 2011)
continue to have worrying income to debt ratios, both of these have cut back their borrowing. In January divorced/widowed/
separated parents had debts of 5,781, and single parents had debts of 4,820.
Finally, while 67% of UK families have some form of unsecured borrowing, 33% continue to avoid using this type of credit.
Debt is for many families just another part of their financial management strategy.
However, in an uncertain economy, it is essential to look to pay debts down where
possible and avoid additional financial obligations. It is then good news that a thirdof people continue to have no unsecured debts.
Paul Goodwin, head of pensions marketing, Aviva
Family Type
TotalDeb
t
0
20000
40000
60000
80000
100000
120000
Committedrelationship, noplans to have
children
Committedrelationship
with plans tohave children
Married/committedrelationship
with one child
Committedrelationshipwith two+children
Divorced/separated/widowed
raising onechild alone
Single raisingone+ children
alone
Debts on credit cards, loans & overdraft
Mortgage Debt
The Aviva Family Finances Report 11
Debt continued evidenceof increasing debt levels
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13/20The Aviva Family Finances Report 13
A spotlight on WorkplacePension Schemes
The UK is facing a pensions crisis with a rapidly ageing population, a lack of
retirement provision, over-reliance on limited state funding and increased
longevity. Research by Aviva in September 2010 found the UKs annual
pensions shortfall stood at 318bn, making it the largest gap per person in
Europe (the shortfall being the difference between the income needed to live
comfortably in retirement, and the actual income people can currently expect).
To help combat this, the Government is introducing rules so all employees are automatically enrolled into
workplace pensions from October 2012.
This initiative will see the mandatory introduction of workplace pensions by all UK employers. In simple
terms, all employers will be required to contribute a minimum of 3% of each employees eligible earnings
towards the pension assuming the employee doesnt opt out. Employees will need to make a minimum
personal contribution of 4%, with a further 1% coming from tax relief, which means total contributions will
be a minimum of 8%. The employee will be automatically enrolled into the workplace pension, but will have
the right to opt out at any stage. This requirement will be phased in between October 2012 and 2016
depending on the size of the employer.
Prior to this launch, Aviva has taken a snapshot of how ordinary families currently engage with employerpension schemes and how they might choose to engage with auto-enrolment.
More than a third (37%) of all full-time employed UK family heads claim to work for a company that does not offer
a workplace pension. There are around a million employers in the UK so the introduction of auto-enrolment in 2012
will cause a significant shift. Just 28% say they have an employer pension that they are actively paying into.
The remainder of working family heads have either chosen not to pay into it (25%), are ineligible (3%) or
perhaps more worryingly, simply dont know what their employer offers (7%). Employer communication of
the benefits on offer appears to be key, with 18% of those who are not members of a scheme citing lack of
communication as the main reason behind not joining.
% of UK families enrolled in an employer pension
The Aviva Family Finances Report 13
0%
5%
10%
15%
20%
25%
30%
35%
40%
Do not belong toemployer pension
scheme
Belong toemployer pension
scheme
Not eligible foremployer pension
scheme
Employer doesnot offer a
pension scheme
Unsure ofwhether employer
offers pensionscheme
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14/20The Aviva Family Finances Report 14
Of these people who arent paying into a pension, the increasingly high cost of living was also highlighted as
a cause with 35% (in full-time employment) and 55% (in part-time employment) feeling that they could not
afford to give up part of their salary to put towards their retirement. Other reasons for employees to decide
not to join an employer pension scheme include worries about the rate of return (13%), not having got
around to it (12%) and employers acting as though they dont want people to join (3%).
Almost a third (28%) of people who do pay into a pension scheme appear to focus on the benefits they can
derive by taking this course of action. Indeed, 55% say as their companies also contribute to the scheme it
would be silly not to join and 44% found their companys positive stance towards enrolment ensured they
joined the scheme.
Finally, 15% said that without a company scheme they would not be saving anything for retirement and one
in eight (13%) revealed that they dont trust the Government to look after them in their old age.
While almost one in five (18%) of all full-time employed UK family heads did not believe they could contribute
to a pension and still meet their basic living costs even if their contributions were matched by their employers
the majority of UK workers begged to differ.
With regular warnings in the media and Government announcements highlighting the pitfalls of not saving
for retirement, when asked how much of their salary they would be prepared to contribute, the most popular
response from full time workers was up to 5% of their salary, if matched by employers (accounting for 26%of respondents).
For those earning the median UK salary, this would equate to them contributing 1,294 per year and - when
combined with matching employer contributions - would provide a pension pot of 113,868 over a 44-year
working life (before inflation, investment performance and salary fluctuation is factored in). Using Avivas
pension calculator, a customer might expect a fund of 252,438 - this takes into account inflation and
investment growth. This is significantly higher than the current average annuity pot of less than 30,000 and
would be a significant step towards eliminating the UK pensions crisis.
The Aviva Family Finances Report 14
Its encouraging that the vast majority of families (74%) feel they
should be able to contribute towards a workplace pension - and
good news to see that most employees (55%) feel it would be silly
not to join a company pension if their employer also contributed. It
is concerning however that a third (35%) feel they will either opt out
or dont yet know what theyll do when automatically enrolled. For
the long-term interests of customers, all parties concerned need to
work hard to ensure that opt-out rates are as small as possible.
Paul Goodwin, head of pensions marketing, Aviva
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15/20The Aviva Family Finances Report 15
% of salary
contributed
Contribution by employee Total over 44 year working life (employer
and matching employer contributions
combined)
Monthly Annual Total pension
pot using Avivas
pension calculator
(at 9 May 2011)
Monthly retirement
income, including
state pension*
1% 22 259 51,716 572
2% 43 517 103,428 773
3% 65 776 155,140 939
4% 86 1,035 206,852 1,104
5% 108 1,294 258,564 1,269
6% 129 1,553 310,276 1,435
7% 151 1,812 361,988 1,600
* Using Avivas pension calculator assuming no tax-free cash is taken at retirement.
While some commentators are sceptical about auto-enrolment, the highest percentage of UK families (37%)
would be pleased to be automatically enrolled and would even feel valued by their employer as a result
(7%). Just 15% of UK families said that they would choose to opt out with the highest percentage of thesebeing single parents (22%) who were also most likely to be concerned about how their take home pay
might be affected (28%).
Indeed, while UK family members were generally positive about auto-enrolment, there is a significant piece of
work that needs to be done to inform people of the changes and put their minds at rest. With less than two
years to go, one in five (20%) have yet to form an opinion on this issue and 12% worry that the scheme may
not be the best option for them.
It is interesting to note that women who often have significantly less retirement provision are more
positive about auto-enrolment than men. More (39%) are pleased to be automatically enrolled (men 35%)
and just 14% (men 17%) will consider opting out of the scheme.
The Aviva Family Finances Report 15
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16/20The Aviva Family Finances Report 16
One major hurdle that families see as stopping them from contributing to a pension is
the rising cost of living squeezing their disposable income. Indeed, 4% of UK families
claim that after living expenses, there is no additional money. Divorced/separated/
widowed families with one or more children (8%) are most likely to say this followed
by married/committed families with two or more children (5%).
However, for 96% of ordinary UK families, there is sufficient cash to spend on further
expenses. Some choose to take positive financial decisions with this surplus and pay
down unsecured debts (32%), put into a savings account (23%), put it into a long-
term savings vehicle (8%) or pay down their mortgage (7%).
Nevertheless, just 10% look to put this surplus into some form of retirement savings
vehicle. In addition, those who arguably need to take the biggest proactive steps in
this arena are least likely to do so single parents with one or more children (4%).
However, Avivas latest Understanding Consumer Attitudes to Savings study (May
2011) shows that the majority of UK adults feel they will need at least half of their
regular monthly income to get by in retirement and two thirds to be comfortable.
So there is clearly work to be done to meet these expectations.
While some take proactive steps to improve their financial position, others choose
to spend surplus on treats for the family (33%), home improvements (17%) and on
themselves (11%).
How families choose to spend any remaining moneyafter day-to-day living costs
Spend it on treats for my family e.g. days out 33%
Pay off debts not including mortgage (e.g credit cards / loans) 32%
Save into a bank / building society savings account 23%
Save for a specific purpose e.g. house deposit, car, holiday 23%
Spend it on my home 17%
Save for my childrens education / university fees 12%
Put aside for future expenses e.g. new school clothes 11%
Spend it on myself 11%
Save for my retirement 10%
Save into a longer-term savings vehicle e.g. ISA / bond 8%
Pay down my mortgage 7%
Other 5%
The Aviva Family Finances Report 16
It is sobering to note that saving for retirement ranks
ninth on the list of 12 ways to spend any spare money.
If we are to bridge the pensions gap, we have a long
way to go.Paul Goodwin, head of pensions marketing, Aviva
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Region% of people living in committed
relationships who want children
% of people living incommitted relationships
with two or more childrenSalary Debt
House
prices
East of England 10% 39% 1,981 4,742 193,026
London 28% 28% 2,544 7,776 306,863
East Midlands 14% 46% 1,960 3,897 180,441
West Midlands 16% 42% 2,073 4,250 174,148
North East 8% 42% 1,812 4,797 150,862
North West 14% 45% 1,954 6,243 172,789
Scotland 11% 41% 2,014 4,352 169,509
South East 16% 41% 2,429 5,185 255,896
South West 15% 44% 1,839 7,902 216,262
Wales 9% 47% 1,579 7,527 201,705
Yorkshire 16% 43% 1,579 6,622 162,740
UK 15% 41% 2,062 5,878 205,144
Regionaloverview
The Aviva Family Finances Report 17
It is interesting to note that the typical UK family appears to
migrate according to its life stage. London has the highest
number of families living in committed relationships who want
children (18%), but East of England has the highest number of
people in a committed relationship with two children
(48%) followed by East Midlands (45%) and the North
East (45%). These figures appear to show that when
people have children, they look to move outside
London possibly to return to live near one or
both of the parents families.
Families in London (2,544) and the South East (2,429)
continue to bring home the highest median income each month. At the other
end of the scale, families in Wales (1,579) have the lowest median income.
These figures tally up with house prices as London families (306,863) own
the most expensive properties, well above even the South East (255,896) and
significantly higher than the average value of a family home (205,144).
In terms of savings and investments, London families have the most, with an
average of 26,024 put away. However, there has been an improvement across
nearly all regions in terms of a reduction in the percentage of families with
no savings. The greatest change between January and May was seen by
families in the East Midlands where 32% reported having no savings inJanuary but just 22% claimed they still had no savings in May. The only
region reporting an increase was the North East where 40% of families now
say they have no savings up from 37% in January.
With regards to debt, families in the South East (39%) are most likely
to be debt-free (in terms of credit cards, loans and overdraft) and
those in Wales (23%) are least likely to be debt-free. However,
families in the East Midlands have the lowest mean average debt
(3,897), compared to those in the South West who have the
highest debt (7,902).
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The second edition of the Aviva Family Finances Report highlights
that UK families are feeling the effects of the uncertain economic and
political climate. However, rather than buckling under the pressure,
they are taking positive steps to protect their loved ones. Over this
period, we have seen many increase their savings, reduce their debts
and even some take their first steps onto the property ladder.
However, while these are all positive steps, many families appearto be looking at short-term goals rather than considering how they
will prepare for their retirement. Employers have the opportunity to
play a key role in helping UK families to make positive steps towards
a financially secure retirement and we urge them to ensure their
employees understand what needs to be done.
Paul Goodwin, head of pensions marketing, Aviva
So what does this tell us?
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Methodology
The Aviva Family Finances Report was designed and produced by Wriglesworth Research. As part of this 4,037 UK
consumers - aged between 18 and 55 - who live as part of one of six family groups were interviewed between
December 2010 and April 2011. This data was combined with additional information from the sources listed below
and used to form the basis of the Aviva Family Finances Report.
Additional data sources include:
Kantar Worldpanel Supermarket Market Shares
British Bankers Association March Lending Figures
Nationwide Building Society April Average House Price
Office of National Statistics Median UK Salary
Aviva Management data Average Annuity
Working Life Consumer Research on 2,400 UK consumers July 2010
Aviva UK Pensions Gap Report - September 2010
Aviva Understanding Consumer Attitudes To Savings Report - May 2011
Technical Notes
A median is described as the numeric value separating the upper half of a sample, a population, or a probability
distribution, from the lower half. Thus for this report, the median is the person who is the utter middle of a sample.
An average or mean is a single value that is meant to typify a list of values. This is derived by adding all the values
on a list together and then dividing by the number of items on said list. This can be skewed by particularly high or
low values.
For further Information on this report and the Aviva Understanding Consumer Attitudes to Savings Report, or for a
comment, please contact Sarah Poulter at the Aviva Press Office on 01904 452828 or [email protected]
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