A significant proportion of people in the UK do not expect to fully retire, according to a new report from HSBC, which suggests that the country’s retirement landscape is changing.
The company’s Future of Retirement study shows that 19 per cent of staff in the UK expect that they will never be able to afford to fully retire, while 39 per cent of people who are already retired say that they had not adequately prepared for a comfortable retirement.
Lack of preparation
The survey revealed that 35 per cent of people only realised they were underprepared after retiring, and also suggests that the number of people who never expect to retire is higher among certain demographics.
Britain tops the list of the countries that have the highest proportion of people who are divorced or separated that are expecting to work indefinitely, with this standing at 36 per cent, compared to just 20 per cent globally, while 31 per cent of those who are widowed have the same expectations, compared with 23 per cent across the globe.
In spite of these findings, only two per cent of Brits who did not prepare adequately or at all said they would have to go back to work to cover their financial shortfall, compared to 44 per cent across the world – they are instead resigned to the notion that they will never be able to compensate for the shortfall.
Not all bad news
Although many people concede that they will have to work in later life, some are looking forward to the challenge, with just seven per cent of people in the UK saying they intended to start a business in retirement – however, this stands at 27 per cent across the globe, suggesting that Brits lack the same entrepreneurial spirit.
Christine Foyster, head of wealth management at HSBC, said that whereas some people regard a comfortable retirement as a natural entitlement, for a growing number this is not the case.
She added: “Today’s workers should prepare for retirement as early as possible to have some certainty for retirement. Life is full of reasons to prioritise short-term spending over longer-term planning, but the sooner people start saving, the less likely they will have to rely on working in old age.”
Respondents said that the key tactics for avoiding being caught short in retirement are not rushing into retirement, not relying on one source of income, planning retirement with family in mind, and being realistic about retirement outgoings.