One in five workers fear they will never have enough money to retire, damning report warns
HSBC study finds a third were ‘not preparing adequately’ for retirement
The report also warned another third were saving nothing at all
It warns Britain must prepare for the ‘Age of the Unretired’
Pensions minister insists Government reforms will help people save more
By JASON GROVES
PUBLISHED: 00:30, 18 September 2013 | UPDATED: 08:30, 18 September 2013
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A fifth of workers believe they will never have enough money to retire, a report warns today.
The study by HSBC found a third of people were ‘not preparing adequately’ for their retirement, with another third saving nothing at all.
It warns that Britain must prepare for the ‘Age of the Unretired’.
Money worries: An HSBC study has found a fifth of workers believe they will never have enough money to retire
Pensions minister Steve Webb last night insisted Government reforms of the pension system would help people to save more, particularly those on low incomes.
But he added: ‘It is certainly true that this generation will have to work longer than their parents … We need to get people starting to think about their retirement much sooner, instead of the culture of “panic at 50” which we’ve had until now.
‘Under-saving is a chronic problem in this country and has been for decades – it cannot be turned around overnight. People need to start saving earlier, save more and, yes, work for longer – there are not many other options.’
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HSBC research shows the UK fares badly when it comes to saving for retirement.
On average British workers think their savings will run out barely a third of the way through their retirement.
Workers in the United States think their savings will fund two thirds of their retirement, while those in Australia, Mexico and China think they have saved enough to pay for at least half.
Today’s study found only two per cent of people plan to get a job to boost an inadequate income during retirement
Former government pensions adviser Ros Altmann said: ‘People are going to have to save more but they are also going to have to work a bit longer too.’
But today’s study found only 2 per cent of people plan to get a job to boost an inadequate income during retirement.
Meanwhile, 44 per cent said they were ‘resigned to the idea they will just never be able to make up the shortfall’.
In Britain, just seven per cent of people said they hoped to set up a new business in retirement, compared to a global average of 27 per cent.
Christine Foyster, head of wealth management at HSBC, said: ‘People want to slow down in later life and while some may welcome the chance to remain economically active, many may not.
‘Whereas some people regard a comfortable retirement as a natural entitlement, for a growing number it is not.’