Three quarters (75%) of people aged 45 and over dream of retiring in the next five years but almost half (45%) cannot fulfil these dreams because their circumstances won’t allow it according to HSBC’s latest ‘The Future of Retirement’ report.
Those who wish to retire in the next five years claim they face multiple barriers. Nearly three-quarters (74%) haven’t saved enough money and 18% say they have too much debt. Nineteen percent also claim they have dependents that rely on their income.
The number of people of people who fear they may never be able to fully retire has also increased in the last year. Twelve percent are worried they won’t ever be able to afford to retire and will have to continue working, up 2% from 2015.
Caroline Connellan, Head of UK Wealth said:
“For many people concerns about money are preventing them from retiring when they want to.
“Modern financial pressures and the changes in pension freedoms make the need for sound financial planning more important than ever.
“Even small amounts saved today can make a difference.”
It seems retirement is the answer to a happier life. Of those who have retired, 39% of people say their standard of living has increased despite no longer receiving a monthly salary. Forty-one percent said their social life improved compared to just 8% who claimed it had gotten worse.
The HSBC report identified four practical steps to help people prepare for retirement:
For more information, a copy of the full report, case studies or to arrange an interview, please contact: Jenna Brown / 0207 9914 980
Notes to editors
The Future of Retirement is a world-leading independent research study into global retirement trends, commissioned by HSBC. It provides authoritative insights into the key issues associated with ageing populations and increasing life expectancy around the world. This report, Healthy new beginnings, is the twelfth in the series and represents the views of more than 18,000 people in 17 countries and territories worldwide (Argentina, Australia, Brazil, Canada, China, Egypt, France, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, United Arab Emirates, United Kingdom, United States). The findings are based on a nationally representative survey of people of working age (25+) and in retirement, in each country or territory. The research was conducted online by Ipsos MORI September and October 2015, with additional face-to-face interviews in Egypt and the UAE. Since The Future of Retirement programme began in 2005, more than 159,000 people worldwide have been surveyed.
For the latest updates, visit the HSBC UK newsroom.
HSBC Bank plc
HSBC serves c17 million customers in the UK and employs approximately 46,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including bank accounts and mortgages. It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.
The HSBC Group
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 6,100 offices in over 72 countries and territories in Asia, Europe, North and Latin America, and the Middle East and North Africa. With assets of US$2,549bn at 30 September 2015, HSBC is one of the world’s largest banking and financial services organisations.
View the full report The Future of Retirement Healthy new beginnings.