Retirement Gal

All Things for a Secure Retirement

  • Home
  • About
    • Terms of Use
  • Contact

The 7-year Glitch to Today’s Retirement Aspirations

  • Retirement
Share:
fb-share-icon
Tweet

From CNBC.com

Current retirees may have worked tirelessly to ensure that their retirement is financially bulletproof, yet for today’s typical worker to achieve the same status, they’re expecting to save for an additional seven years, new HSBC research suggests.

Having interviewed over 18,200 people across 17 countries either online or face-to-face, the leading lender discovered that workers now expect to save for an average of three decades to feel financially secure for retirement — seven years more than the previous generation, on average worldwide.

Retirement Additional Retirement Savings Years
Source: HSBC

China’s working community is expected to take on the biggest hurdle, with pre-retirees expecting to now save for an additional 14 years, bringing their average saving total up to 23 years, compared to the nine years that current retirees had saved for.

The United Arab Emirates, Australia, France and Hong Kong are also worse off, with each average citizen looking to save for an additional 10 years or more on top of their current average, to feel financially ready for retirement.

Meanwhile, Indonesia was the only country surveyed that doesn’t expect to save for longer than its current average, as many pre-retirees started saving earlier, but expect to retire earlier too, according to the “Generations and journeys” report.

When it comes to how workers plan to save for their future, alternative saving methods are becoming increasingly attractive compared to relying on traditional state pensions. Cash savings/deposits, downsizing or selling property, and personal pension schemes were among some of the options people are looking into to fund retirement.

While it appears the working population is becoming more financially-conscious about retirement, over a third admitted that they wish they’d started saving earlier on. Meanwhile, 24 percent confessed they hadn’t begun saving for retirement, including 12 percent of those in their 60s.

However it isn’t all that easy for workers who have started to save either. Forty two percent of those who have begun saving admitted to having either faced challenges or stopped, when it came to preparing for life after work.

While the way we save for retirement differs from person to person, HSBC stresses that it’s essential for individuals to start saving as early as possible, even if it’s a small amount.

Retirement Planning Retirement Savings
July 19, 2016 Melanie

Post navigation

Retirement May Involve Supporting More Than Just Yourself → ← Expanding Options in Long-Term Care Insurance

Connect with Us

RSS
Facebook
Facebook
fb-share-icon
Twitter
Visit Us
Follow Me
Tweet
LinkedIn
Share
YouTube
Follow by Email
Financial Perspectives

More from Us

As part of Financial Perspectives, we share our unique view through these other affiliated blogs:
Financial Perspectives
Investment Edge
Retirement Corner
The Sharp Chartist

Recent Posts

Expect the Unexpected

Expect the Unexpected

Share:

More Info
10 Ways Retirement Has Changed Over the Last Decade

10 Ways Retirement Has Changed Over the Last Decade

Share:

More Info
It’s RMD Season!

It’s RMD Season!

Share:

More Info
2020 Adjustments for Taxes and Contributions

2020 Adjustments for Taxes and Contributions

Share:

More Info
Social Security 2020

Social Security 2020

Share:

More Info
How Life Expectancy Impacts your Retirement Plan

How Life Expectancy Impacts your Retirement Plan

Share:

More Info
Like Squeezing Blood Out of a Turnip

Like Squeezing Blood Out of a Turnip

Share:

More Info
Breaking Bad Habits

Breaking Bad Habits

Share:

More Info
Break Out Those “Childproof” Locks

Break Out Those “Childproof” Locks

Share:

More Info
Real (Purchasing) Power

Real (Purchasing) Power

Share:

More Info

Disclaimer

The information provided on the Blog is provided for informational purposes only and should not be used as a substitute for personalized professional financial advice. Participation in any way with the Blog does not constitute an investment advisory, financial or retirement planning engagement. You should consult with your investment adviser or another financial professional before making any investment decisions. While all information on the Blog is gathered from sources that we deem to be reliable, we cannot guarantee the completeness and/or accuracy of such information. From time to time general investment guidance may be given in the Blog in response to questions asked by readers of the Blog. There is no guarantee as to the risk, returns, and performance of any investments referenced herein.

Copyright Retirement Gal and Financial Perspectives | Terms of Use