Britain faces 'retirement crisis'
Published on 20 February 2013 11:30 AM
The UK is the arguably the most poorly prepared nation for old age, with workers typically spending over a decade with reduced living standards - a global poll suggests.
The savings of most Britons will be inadequate in their old age, as they spend an average 19 years in retirement with savings lasting just seven years, HSBC said.
The 12-year shortfall in the UK was the biggest across the whole study, which took place in 15 countries. The average discrepancy in the poll was 8 years.
UK savers only prepare around 35% of their retirement fund, while Malaysia came out top with over 70%, seconded by the USA and India at 67%.
The UK also came below several other nations including Egypt, China, France, Taiwan, Brazil, Australia, Hong Kong, Singapore and Canada.
1 in 3 people surveyed in the UK said they had not saved at all for their retirement, while more than 60% said they were anxious about it, measuring up to a 57% figure globally.
Of the non-savers, around 3 in 5 said that a limited income was the reason, especially among people aged 35-44 years-old.
Too many relying on state pensions
On average, men in the UK save around £73,000 for their old age, compared to women, who save £53,000.
The study also suggests that people may be relying too much on state pensions and not enough on individual savings.
Some 20% of people said that state pensions are the main source of their post-job income, while a significant proportion of Britons desire a retirement income which represents three-quarters of their employment income.
Only 40% of UK respondents said they save for their retirement, with only Egypt with a lower percentage of savers.
Joanne Segars, chief executive of the National Association of Pension Funds, said that Britain must act urgently on the impending retirement 'crisis'.
She said: 'For millions of people, that will mean working longer or saving more, or both.'
She added that 'too many' Britons will be forced to lower their quality of life due to a lack of pension funds.
Copyright Press Association 2013