Pre-retirees expect to make more sacrifices in retirement than current retirees have, a new study finds.
Globally, a quarter (25%) of working age people say they will have to move to a smaller home when they retire, and more than a third (36%) say they will eat out less often, according to the latest study by HSBC.
“A balancing act” is the 10th in HSBC’s The Future of Retirement series and represents the views of more than 16,000 people in 15 countries and territories, including the United States. The findings are based on an online poll conducted by Ipsos MORI in August and September 2014.
Many pre-retirees think that they are not doing enough to adequately prepare for a comfortable retirement, data reveal.
Globally, almost two in five (37%) think their financial preparations are inadequate, a sentiment matched by retirees, 37% of whom say they were not prepared adequately or at all, according to the study. Many working-age people are worried about running out of money (69%) and about having enough money to live on day-to-day (66%) in retirement.
“Globally, working age people expect that their retirement savings and investments (excluding pensions) will run out 11 years into their retirement,” the study says. “With retirees on average fully retiring at age 60 and with an average life expectancy of 78 years, pre-retirees typically face a seven year gap when they will be solely reliant on any state, employer or personal pension provisions they may have.”
In addition, a third (33%) of today’s retirees say their financial situation in retirement is worse than they expected, and 34% say they should have saved more.
Access the study here.
Written by Cassandra Dowell