27th January 2016
Three quarters (75%) of people aged 45 and over dream of retiring in the next five years, but almost half (45%) will not be able to, a new study reveals.
HSBC’s latest Future of Retirement report found that those
who wish to retire in the next five years claim they face multiple barriers.
Nearly three-quarters (74%) haven’t saved enough money and 18% say they have too much debt. Nineteen percent also claim they have dependents that rely on their income.
The number of people of people who fear they may never be able to fully retire has also increased in the last year. Twelve per cent are worried they won’t ever be able to afford to retire and will have to continue working, up 2% from 2015.
Caroline Connellan, head of UK Wealth at HSBC says: “For many people concerns about money are preventing them from retiring when they want to.
“Modern financial pressures and the changes in pension freedoms make the need for sound financial planning more important than ever.
“Even small amounts saved today can make a difference.”
It seems retirement is the answer to a happier life. Of those who have retired, 39% of people say their standard of living has increased despite no longer receiving a monthly salary. Forty-one percent said their social life improved compared to just 8% who claimed it had gotten worse.
The report identified four practical steps to help people prepare for retirement:
1. Start saving earlier – You can improve your chance of retiring when you want to by starting to save as early as possible.
2. Plan for a longer retirement – Ensure you have a financial plan in place to make the most of this new chapter of your life.
3. Aim for a healthy retirement – Don’t wait until you’ve stopped working to start taking steps to improve your health.
4. Consider how your healthcare needs may change in your retirement – Make sure your potential healthcare needs are included in your financial planning.