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Ostrich generation hide from pension reality

Ostrich generation hide from pension reality

Category: Pensions

Updated: 26/05/2011
First Published: 26/05/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Britons stand accused of having their heads in the sand over retirement planning.

A generation of workers face a financially-stretched retirement as people ignore or refuse to respond to the changing nature of pension provision in the UK , a new report from HSBC has revealed.

Although members of the so-called 'Ostrich Generation' are aware they will live longer than their peers and appreciate that state and company pensions will no longer be so generous, they remain under-prepared.

Indeed, the unrealistic expectation of many is that they will be able to semi-retire in their mid-50s before giving up work altogether at 62.

Probably more in touch with reality are the half of those surveyed who expect to be worse off in retirement than their parents.

Almost one in five admitted they do not know what their main source of retirement income will be, with around the same amount of people claiming they intend to rely on the state pension.

Although almost half of people fear they are not saving enough for their retirement, less than four in ten have put a financial plan in place to try to remedy the situation.

Retirement planning is a must for anyone who hopes to enjoy a comfortable retirement, with the earlier the planning starts the better.

"Britons know that they need to plan and save more for their retirement, yet are not turning this knowledge into action," said David Wells, head of investments, pensions & savings at HSBC Bank.

"People need to look around and take proper stock of what they need to do – they can no longer totally rely on the state or their employer to provide for them.

"In the 21st century it is all about taking individual responsibility."

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