This probably wont come as any surprise but the findings in a global study and report, ’The Future of Retirement: A New Reality’ recently produced by HSBC, tell us that the average Briton will have a savings pot that is only adequate for the first seven years after they stop working.
Because their average post-working life expectancy is now 19 years, there will be an average of 12 years of hardship as the money runs out. HSBC says that the failure to prepare adequately for retirement puts the UK at the bottom of a league table of 15 nations that included developed countries such as the US, France and Australia, and developing nations such as China, Brazil and India.
Christine Foyster, Head of Wealth Development at HSBC UK, said: ”The concept of retirement is evolving all the time and we know many people aren’t prepared. Now we know by just how much. People are living longer, through tougher economic times, but their expectations about their standard of living in retirement remain unchanged.”
People throughout history have faced the question of how to provide for the future, and today’s savers are no exception. Yet as daunting as the current challenges may seem, the solution is simple: the earlier you start to plan the better prepared you will be.
Medical advances and healthier lifestyles mean that the average Briton can now expect to live into their 80s, but the study finds that more than half of the working population is not preparing adequately for later life, with 19% saving nothing at all.
If you would like any assistance in identifying, achieving and maintaining your desired lifestyle without fear of ever running out of money then please contact us.