18.09.13

One in Five Workers Say They Will Never Retire

One in five people working in Britain today believe they will never stop working, according to a new report published today.

The Future of Retirement report reveals a fifth (19 per cent) of Britons expect never to be able to afford to retire fully, and HSBC, the author of the report, have warned that Britain must prepare for the ‘Age of the Unretired’, as people fail to save enough for their retirement.

Two-fifths of retired people in Britain (39 per cent) said that they had not financially prepared for a comfortable retirement, with 35 per cent of those only realising they were underprepared after retiring. Almost half (49 per cent) of retirees surveyed said they were unable to realise their plans for retirement because they had less money to live on than they envisaged. However, just 2 per cent of Brits who were financially unprepared for retirement said they would have to go back to work to make up their financial shortfall, compared to 44 per cent globally.

Globally, the UK ranked fairly low for retirement savings, with the average British worker believing their savings will run out barely a third of the way through their retirement. Workers in the United States think their savings will last for two-thirds of their retirement, while those in Australia, Mexico and China believing they can fund at least half of their retirement.

Christine Foyster, Head of Wealth Management, said: “People want to slow down in later life and, while some welcome the chance to stay economically active, many may not. Whereas some people regard a comfortable retirement as a natural entitlement, for a growing number this is not the case.