UK workers are the worst in the world at saving for retirement, data from a new report into global savings shows.
According to the HSBC report, “The Future of Retirement: A New Reality”, the average UK citizen will spend 19 years in retirement but with savings that will run out after just seven.
In other words, their savings will only cover 37 percent of their retirement income with the rest being covered by other income such as the state or employment.
Polling 15,000 people across 15 countries worldwide, the study found that people will on average run out of retirement savings just over half way into their retirement. Malaysia was the best nation analysed with its citizens saving 71 percent of their needed retirement income.
HSBC group head of wealth management Simon Williams says: “There are, of course, many obstacles to saving, including the lack of a regular savings habit and the financial impact of unexpected life events.
“Unfortunately, the impact of saving too little or too late will only become clear in later years, when people find they are retiring without the necessary income to support an active and fulfilling retirement.”
