HSBC Bank Report On Future of Retirement
Nearly half of retired people [46%] who have not achieved their hopes and aspirations for retirement believed this was because they have less money to live on than they expected, according to HSBC’s report, The Future of Retirement: Life after work?
Many retirees around the world are having to sacrifice ambitions such as travelling and spending more time with their friends and family. The findings show that of those who have less money to live on than envisaged, seven in 10 retired people [70%] regret not saving more in order to achieve their aspirations.
HSBC’s report, which surveyed 16,000 people in 15 countries,, found that nearly two fifths [38%] of retired people did not prepare adequately or at all for a comfortable retirement, with 38% of those people only realising they were underprepared after retiring. Two fifths [38%] of retirees found that their income in retirement was less than expected. The relative shortfall was slightly more acute amongst women, with 42% finding their income was lower than expected, compared to 36% of men.
Of those whose income was less than expected, 35% said it was because they did not plan sufficiently for retirement.
14% of those who did not prepare adequately or at all said they would have to go back to work to cover their financial shortfall.
Those who have yet to retire face similar problems in old age with nearly one in eight current workers [12%] saying they did not believe they would ever be able to afford to fully retire while 17% of those aged between 55-64 who are still employed said they believed they would have to work indefinitely.
Financial hardship comes second only to poor health as the biggest fear that retired people have for the years ahead, with 41% stating it as a concern compared to 52% stating poor health. Just over a quarter [27%] said they fear not having enough money for good healthcare provision.
Simon Williams, Group Head of Wealth Management, HSBC, said, “The desire to live a full life after work can be seen in the widely held aspirations for a healthy and prosperous retirement. Yet such goals are being put at risk by a failure to prepare adequately.
“People should consider how to provide for their future: the earlier they start to plan and save, the fewer retirement regrets they will have.”
To discuss your finances and future goals in person, book a Financial Planning appointment by calling 299-5959 or visit their website planning for more information. To view The Future of Retirement global report, visit their website.
HSBC’s research identified four actions, which may help today’s retirement savers plan a better future for themselves:
Action 1. Don’t rush into retirement
There is a view among retired people that they might have been too hasty in giving up paid employment. Nearly two-thirds [64%] who entered semi-retirement wished that they had stayed in full time employment longer. This regret is largely for positive reasons, with many retired people seeing work as an important means of keeping the body and mind active.
Action 2. Don’t rely on one source of retirement income
With an average of three different sources of retirement income, the current generation of retirees has wisely chosen not to generate all of their income from one place. Instead they have been successful in spreading their retirement income sources and the associated risks, so that not all their eggs are in one basket.
Action 3. Plan your retirement with family in mind
Rather than family ties loosening in future, the family will continue to be a major consideration in retirement planning, and may even grow in importance for the next generation. While many people [40%] aspire to travel extensively during their retirement, nearly half [49%] of current workers expect to have some financial responsibilities towards others even when they are themselves retired. This includes ongoing financial responsibilities for their adult children as well as supporting frail elderly parents.
Action 4. Be realistic about your retirement outgoings
Many working people assume that their income needs will fall once they enter retirement. Yet 52% of people in retirement have seen no reduction in their outgoings, and 17% have seen their outgoings increase. Although people are familiar with the concept of increasing life expectancy, the consequent increase in later life medical and nursing care costs may not be well understood as people are still not doing enough to prepare themselves for these potential costs.
No kidding. In an environment of 0% interest rates established to save banks and the greed of the 1% it is no wonder 70% of people don’t have sufficient retirement income. HSBC
HSBC is not trying to help us – this report is a ploy for HSBC to get more of the public’s 0% interest money. World populations have a way of balancing the scales – watch out.
Again this points to the logical conclusion that if you start to plan and save/invest early in life and do it consistently you have a much better chance of retiring on your terms and living the lifestyle you want. There is always a segment of the population that is just barely getting by and this will be difficult if not impossible for them to do but there is also a large segment of the population that could have saved/invested and did not. There is a great deal of retirement information on the web and most is free. I never understand why more people do not take advantage of this and educate themselves. I use several sites including the site Retirement And Good Living which provides information on finances, health, retirement locations, part time work and also has a great blog of guest posts about a variety of retirement topics.
Be very careful what you all say about your Lawyer;your Dentist; your Doctor; your Pharmacist; your Neighbor; your rich Uncle; your Politician; he who holds the gold; and be especially careful what you say about your Bank.