The latest in HSBC’s long running Future of Retirement studies, entitled Generations and journeys,which surveys over 18,000 people in 17 countries, reveals that pre-retirees in Britain are now expecting to save for seven years longer than those already retired.
Britons now expect to save for a period of 30 years before they retire, compared to the current generation of retirees who saved for only 23 years. On average, pre-retirees expect to work until they are 63, compared to 59 for current retirees. They are also starting their saving earlier, at 26 compared to 29. This may reflect ongoing changes to the state pension age as well as increased awareness of retirement issues.
Nonetheless over one in five (21%) pre-retirees still have not started saving for their retirement. Meanwhile, of the 79% who have started saving, 28% have either had to stop or have faced financial difficulties.
When asked where they were going to get advice about saving for retirement, 40% had never received any advice or information. Of those who did seek financial advice, 45% said it gave them a better understanding of the financial implications of their choices and 42% said it gave them a more realistic view of the options available to them.
The report highlighted four practical steps that may help today’s retirement savers plan for a better financial future for themselves:
1. Consider all your retirement expenses
When planning for retirement, make sure to list all your possible retirement outgoings
2. Start saving earlier for retirement
Plan to start saving for retirement earlier, to help build a bigger fund and allow it to grow for longer
3. Make sure your advice is professional
Seek information from many sources, but make sure the advice you get is professional
4. Be prepared for financial ups and downs
When saving for retirement gets difficult, make sure to review all your finances and seek alternative ways to help you continue towards a comfortable retirement
Caroline Connellan, Head of UK Premier and Wealth said:
“The financial landscape is constantly changing. Starting to save early can make a real difference later in life.
“Seeking retirement information and personalised advice from professionals is important to help plan for your future.