Retirement remains an unaffordable dream for many, according to a new HSBC report. Nearly one in five people worldwide predict that they will never be able to retire completely and many more may have to continue working for longer than they would like.
The research found that 65 per cent of pre-retirees aged 45 and above would retire within the next five years if circumstances allowed. But 38 per cent of this group say that they are unable to do so, primarily because they would struggle financially.
The Future of Retirement Healthy new beginnings report, commissioned by HSBC from Ipsos MORI, is based on a survey of more than 18,000 people in 17 countries and territories worldwide.
Of those pre-retirees aged 45 and above who would like to retire but cannot, 64 per cent say they have not saved enough money
Charlie Nunn, Group Head of Wealth Management, HSBC, said: “People worldwide are recognising that retirement can be an opportunity for reinvention and new beginnings. Yet financial barriers are preventing many people from retiring when they would like to – or, in some cases, at all. Almost one in five people fear that they will never be able to retire fully, so the need for sound financial planning is stronger than ever.”
Workers aged 45 and above are most likely to want to retire in Argentina (78 per cent), France (77 per cent), China (75 per cent) and the UK (75 per cent).
People give a range of reasons for wanting to retire. Some 55 per cent of working people aged 45 or above who would like to retire in the next five years want to travel or pursue other interests, and 44 per cent would like to spend more time with family. The report also shows that 29 per cent would like to retire because they are tired of the everyday routine of work, while 23 per cent say it is because their work is having a negative impact on their health.
People who have a retired partner are particularly likely to want to retire in the next five years.
Of those pre-retirees aged 45 and above who would like to retire but cannot, 64 per cent say they have not saved enough money, 32 per cent say they have dependants who rely on their income and 24 per cent say they have a lot of debt.
Read the full report The Future of Retirement Healthy new beginnings.
The Future of Retirement Healthy new beginnings was conducted by Ipsos MORI on behalf of HSBC in September and October 2015. The findings of the report are based on a survey of more than 18,000 people of working age (25+) and in retirement in 17 countries and territories: Argentina, Australia, Brazil, Canada, China, Egypt, France, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, United Arab Emirates, the UK and the US.