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| Retired Britons 'will run out of savings third way through post-work years' | Retired Britons 'will run out of savings third way through post-work years' |
| (9 months later) | |
| Workers in Britain will run out of savings a third of the way through their retirement and are reported to be the worst prepared, among 15 nations, for that period in their lives, according to a bank's study. | Workers in Britain will run out of savings a third of the way through their retirement and are reported to be the worst prepared, among 15 nations, for that period in their lives, according to a bank's study. |
| The global report, published by HSBC, finds that the average Briton will have a savings pot that is adequate for the first seven years after they stop working, but then there will be 12 years of hardship, on average, as the money runs out. | The global report, published by HSBC, finds that the average Briton will have a savings pot that is adequate for the first seven years after they stop working, but then there will be 12 years of hardship, on average, as the money runs out. |
| HSBC said the failure to prepare adequately for retirement put the UK at the bottom of a league table that included developed nations such as the US, France and Australia, and developing nations including China, Brazil and India. | HSBC said the failure to prepare adequately for retirement put the UK at the bottom of a league table that included developed nations such as the US, France and Australia, and developing nations including China, Brazil and India. |
| Christine Foyster, head of wealth development at HSBC UK, said: "The concept of retirement is evolving all the time and we know many people aren't prepared. Now we know by just how much. | Christine Foyster, head of wealth development at HSBC UK, said: "The concept of retirement is evolving all the time and we know many people aren't prepared. Now we know by just how much. |
| "People are living longer, through tougher economic times, but their expectations about their standard of living in retirement remain unchanged. They are putting off the inevitable, which is the reality of significant cuts to their living standards in their twilight years after their savings run out." | "People are living longer, through tougher economic times, but their expectations about their standard of living in retirement remain unchanged. They are putting off the inevitable, which is the reality of significant cuts to their living standards in their twilight years after their savings run out." |
| Medical advances and healthier lifestyles mean that the average Briton can now expect to live into their 80s, but the study finds that more half of the working population is not preparing adequately for later life, with 19% saving nothing at all. | Medical advances and healthier lifestyles mean that the average Briton can now expect to live into their 80s, but the study finds that more half of the working population is not preparing adequately for later life, with 19% saving nothing at all. |
| A struggle to make ends meet was the greatest concern expressed about living in retirement, the bank said of its survey. Almost two-thirds of those questioned feared financial hardship, while 31% said they were worried that they would have to work longer than they desired. | A struggle to make ends meet was the greatest concern expressed about living in retirement, the bank said of its survey. Almost two-thirds of those questioned feared financial hardship, while 31% said they were worried that they would have to work longer than they desired. |
| But while people in the UK recognise they are not saving enough, they seem set on retiring punctually at 65 and 57% put saving for a holiday ahead of saving for old age. One in seven (14%) would raid retirement pots to cope with big items of expenditure such as buying a home or settling school fees. | But while people in the UK recognise they are not saving enough, they seem set on retiring punctually at 65 and 57% put saving for a holiday ahead of saving for old age. One in seven (14%) would raid retirement pots to cope with big items of expenditure such as buying a home or settling school fees. |
| The report showed that the savings of the average American would last for two-thirds of a 21-year retirement, while retirees in China would run out of money halfway through the 20 years of life after giving up paid work. | The report showed that the savings of the average American would last for two-thirds of a 21-year retirement, while retirees in China would run out of money halfway through the 20 years of life after giving up paid work. |
| Of the 15 countries studied, Malaysia was best placed to deal with the financial needs of an ageing population, with savings covering 12 of the 17 years of retirement. | Of the 15 countries studied, Malaysia was best placed to deal with the financial needs of an ageing population, with savings covering 12 of the 17 years of retirement. |
| Foyster said: "People throughout history have faced the question of how to provide for the future and today's savers are no exception. Yet as daunting as the current challenges may seem, the solution is simple: the earlier you start to plan, the better prepared you will be." | Foyster said: "People throughout history have faced the question of how to provide for the future and today's savers are no exception. Yet as daunting as the current challenges may seem, the solution is simple: the earlier you start to plan, the better prepared you will be." |