A fifth of British workers believe they will ever stop working because they cannot save enough cash to pay their bills in retirement.
In a global survey, single British retirement savers had the worst outlook, with the highest number (36%) of those divorced or separated expecting to work until their health gives out, compared with 20% worldwide.
Another third of those whose partners have dies (31%) fear the same future, compared to 23% worldwide.
The research, by HSBC, looked at the retirement hopes of 16,000 people in 15 countries.
In Britain, 40% of retired workers felt they had not saved enough for a comfortable retirement, with 13% only realising they did not have enough money when they had retired.
Four step retirement plan
However, only 2% will go back to work to fund the shortfall, compared to an average 44% in other countries, as most believe they could never earn enough to make up their financial shortfall.
Generally, many workers overseas (27%) are looking forward to starting a business when they retire, while only 7% in the UK were having the same thoughts.
The study provoked HSBC into putting together a four-step action plan for those approaching retirement:
- Don’t rush into retirement – Around two-thirds of retired people wish they had carried on working, not only for money but to keep active and stay in a social circle
- Don’t rely on a single source of retirement income – Diversifying means maximising returns and minimising risk and losses
- Plan retirement with your family – Living longer means considering elderly parents, children and grandchildren and including them in financial plans
- Be realistic about your retirement finances – Most expect their bills to drop, but the study shows they stay the same for 52% and 17% see them rise. Investigate the costs of long term care as many fail to consider the impact this may have on their finances
Preparing for retirement
Christine Foyster, head of wealth management at HSBC, said: “It’s natural to want to slow down and relax in retirement. Many people have a need to keep earning money – and the reason is not always because they are poor, but they wish to remain active
“Preparing for retirement is important. Everyone always has a reason to spend now rather than save, but putting money aside as retirement savings now means many will not have to rely on working in their later years.”
