HSBC surveyed 16,000 people in 15 countries for its Life After Work? report, comparing the views of working age people with those in retirement. It said 12% of working people do not expect to be able to retire.
This figure rises to 24% for those over the age of 65, with 14% of those who have not adequately planned for retirement saying they will have to go back to work.
In total 42% of working age people expect to semi-retire, at the age of 57 on average. Of those who want to semi-retire first, 44% said this was to keep physically and mentally fit.
However, 43% of working age people do not know when they will retire. There are also significant country differences. The figure rises to 82% in Brazil, while only 29% of working age people in India do not know when they will take retirement.
On average, the next generation of retirees expect to stop working at the same age their parents did – 59, with younger workers expecting to retire earlier than more realistic older workers. Only when a person passes the age of 55 do they see themselves retiring at 65.
Retirees receive 37% of their income from state pensions/benefits on average. The next generation of retirees expect their savings to last 10 years into retirement, despite believing they will have an average life expectancy of 18 years of retirement. This suggests they are less well prepared than their predecessors, said HSBC. Those currently in retirement expect their savings to last 12 years.
In total, 69% of retirees expect to leave an inheritance to their children, and 38% of non-retirees have already received a significant financial gift or loan from their parents or other relatives.
Nearly half of today’s workers (49%) expect to be supporting other people during their retirement.
The picture is bleak for some retirees, with 63% worrying that they do not have enough to live on and 70% wishing they had saved more. HSBC said 50% had cut down on everyday spending, with 22% worried their health will suffer.
Christine Foyster, head of wealth management at HSBC, said: “People want to slow down in later life and, while some welcome the chance to stay economically active, many may not. Whereas some people regard a comfortable retirement as a natural entitlement, for a growing number this is not the case.
“Life is full of reasons to prioritise short term spending over longer term planning, but the sooner people start saving, the less likely they will have to rely on working in old age.”
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