Four in 10 (40%) UK workers have never received any advice or information on retirement, according to a global report from HSBC.
Generations and Journeys, the 13th in a The Future of Retirement series, found that 21% of working age people haven't started saving for retirement. Of the 79% who have, 28% have either had to stop or faced financial difficulties.
Britons now expect to save for a period of 30 years before they retire, compared to the current generation of retirees who saved for 23. On average, today's worker expects to work until they're 63, compared with 59 for current retirees. They are also starting to save earlier, at 26 compared rather than 29. This may reflect ongoing changes to the state pension age as well as increased awareness of retirement issues.
Anna Dixon, chief executive of the Centre for Ageing Better, said that while most people feel financial security is important to ensuring a good later life, other factors must be considered too.
“Many people may need to work longer to be more financially secure in later life,” she said. “But we should also consider a much broader range of issues in advance of stopping paid work, such as how we will manage emotionally and stay socially connected and healthy. We also need to think about the kind of home we would like to live in, particularly if we plan to use the value of property to partly fund retirement.
“Fundamentally we all need to prepare well ourselves, getting better advice and information about retirement. And employers need to play their part, offering pre-retirement support that covers these wider issues. Longer life for many is something to celebrate, and preparing for retirement is one of the keys to enjoying later life.”
Charlie Nunn, group head of wealth management for HSBC said starting to save early might no longer be enough for today's savers. “While there is much to learn from today’s retirees, younger generations must navigate their own path through the big events in their lives and a changing financial landscape,” he said. “Starting to save early may no longer be enough to ensure a comfortable retirement, and continuing to save through the ups and downs of life is just as important.”
