Aviva research has revealed that those approaching retirement have finances in far worse shape than those either aged 65-74 or over 75.

In its first Real Retirement Report published today, Aviva reports that pre-retirees (55-64) have the lowest savings (£8,593), lowest incidences of home ownership (76%) and largest average mortgages (£16,694). 40% of pre-retirees save nothing per month and 20% still owe more than £75,000 on their mortgage.

The report reviews the finances of the three ages of retirement – pre-retirees (55-64) retiring (65-74) and long-term retired (Over 75).

Aviva also reveals that there is a wide divergence between the richest and poorest in all age groups. This gap is at its largest in the younger age group (55-64) so while the average amount of savings for this group is £57,002, the median – which represents a more typical saver – is £8,593. Aviva says this is because a small number of very rich people disguise the relative poverty of a large minority. This difference in savings is less severe for the retiring (average: £58,155 vs. median: £13,957) and the long-term retired (average: £63,576 vs. median: £18,748).

The average income for these age groups falls with age – pre-retirees (£1,433), recently retired (£1,385) and long-term retired (£1,136). However, the number of people who have an income of less than £750 per month actually falls between the ages of 55-64 (23%) and 65-74 (19%) as receiving their state pension means that some people’s income actually increases.

There is only a 21% difference between the monthly income of the pre-retirees and the long-term retired. Aviva says this is in itself concerning as they have significantly more financial commitments such as outstanding mortgage debt 55-64 (average: £16,694), 65-74 (£8,011) and over 75 (£3,277).

Pre-retirees (£8,593) also have fewer savings than the retiring (£13,957) and the long- term retired (£18,748). Indeed – with retirement on the horizon – 40% of pre-retirees are saving nothing each month. While non-mortgage debt is not a significant issue for most people over 55, some people are still working to pay off debt and pre-retirees have the highest level of debt (£2,851) – potentially reflecting the ‘baby boomer’ relaxed attitude to debt.

The majority (80%) of consumers in these age groups own their own homes – outright (62%) or with a mortgage (18%). A shift in attitudes to homeownership is starting to show and the younger age group (76% 55-64) is the least likely to own their own home (compared to 65-74 84% and over 75 81%).

The pre-retirees have the lowest value properties (£225,988) and are the most heavily mortgaged with over 26% still having a mortgage.

Clive Bolton, at-retirement director for Aviva Life, said: “By 2011