A fifth of 50 year olds have not started saving for retirement
The latest HSBC Future of Retirement study found that 21% of working age people have still not started saving for retirement, and worryingly, 17% of people in their 50s have yet to do so.
Of the 2,000 Brits polled, 8% of people aged 60+ admitted they’ve yet to start saving for their future.
The findings also show that working age people in the UK expect to save for seven more years than those who have already retired.
They 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, people of working age 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. HSBC said this may reflect ongoing changes to the State Pension age as well as an “increased awareness of retirement issues.”
Of those yet to retire, a quarter said they expect to use property to fund their later years, but only 7% of current retirees use property to fund their retirement.
HSBC also revealed how more pre-retirees expect to earn an income or keep working to some extent to help fund their pension (23% compared with 6% of current retirees).
Caroline Connellan, head of UK premier and wealth at HSBC, 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.
Four steps to help you plan for retirement
1) Consider all your retirement expenses: When planning for retirement, make sure to list all your possible retirement outgoings. HSBC found that 31% of retirees have credit card repayments yet only 14% of working age people expect to repay these bills in retirement.
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. According to the report, 21% of retirees said they wished they would have started saving earlier.
3) Make sure your advice is professional: Check information from a few sources, but make sure the advice you get is professional.
4) Be prepared for financial ups and downs: HSBC found that 28% of those surveyed who had started saving for retirement had to either stop or they have faced difficulties saving. 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.