HSBC: Identifying & Solving Pension Gaps
[Advice column by HSBC Bermuda]
Will my pension be enough to support me when I retire?
A pension is designed to provide financial support in retirement, however it is possible that you may have a pension gap. This means that your pension income could be less than what you’ll need in retirement to support your desired standard of living. If this is the case, it would be wise to start saving more now.
Determine if you will have a pension gap
First things first, determine if you are at risk. Have a close look at your current and future financial circumstances to determine if you have a pension gap. Consider the following:
- How much money will you need for a comfortable retirement? Be sure to account for unexpected life events such as health issues. It is easy for retirement savings to suffer when times are hard.
- Based on your current pension plan how much money will you have once you retire?
- What will your retirement income be [rental income, part-time work, investment portfolio]?
- Will your combined pension and other retirement income be enough to support your lifestyle?
- What changes can you make?
If you have identified a gap, take action to increase your retirement savings. Remember, the quality of life you want in the future will depend on how well you plan for your retirement now. HSBC has experts on hand to provide free financial planning advice*, however here are some options to consider:
- Increase your pension contributions or the amount you set aside in other savings or investments
- Continue working for a longer period of time and retire later
- Downsize your home
- Reduce your current standard of living and spend less
Free Financial Planning with HSBC*
If you are uncertain how to develop a retirement savings plan on your own, HSBC can help! Our approach takes you through the complete financial planning process, at no cost to you. We’ll work with you to understand your particular circumstances and your financial ambitions. From there, we provide you with solutions on how to manage, grow and protect your savings to achieve your goals.
To make a free Financial Planning appointment visit http://www.hsbc.bm/planning or by calling 299-5959.
Future of Retirement
Find out more about how retirement is changing in our Future of Retirement report.
Issued by HSBC Bank Bermuda Limited which is licensed to conduct Banking and Investment Business by the Bermuda Monetary Authority.
