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Prepare for life after work

Prepare for life after work

Category: Retirement

Updated: 28/11/2013
First Published: 27/11/2013

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 It is now over 6 months old so the content may be out of date.

A report released by HSBC has analysed the issues, attitudes and concerns surrounding retirement, covering everything from income to leaving a legacy, but unfortunately it found that retirement aspirations didn't always live up to reality.

The report highlighted the fact that, no matter what people expect from their retirement, they need to start planning early if they want to achieve their ambitions. Travelling is a key part of a lot of people's retirement plans with 30% of those surveyed hoping to travel a lot or even live abroad, but unfortunately 50% say their lack of preparation has meant they won't be able to holiday as much as they'd hoped.

More general money issues are a concern for a lot of retirees too with 63% worrying that they won't have enough to live on, and 70% of those regret not saving more. An additional 38% admit they haven't prepared adequately, with 42% realising their retirement aspirations won't be met as a result.

Fears surrounding a stable financial retirement were found to affect those of working age as well, with 12% anticipating that they'll never be able to fully retire. Perhaps even more worrying is that all respondents of the survey, both retirees and those still working, expect their retirement savings to run out – retirees expect their pot to last 12 years into their retirement, while those still working expect it to last just a decade.

This is compounded by the fact that living in retirement is more expensive than people think. Fifty-two percent say they spend as much as, or even more than, they did previously, showing that outgoings don't automatically drop at retirement as a lot of people expect – something that's made worse by the fact that 21% of retirees saw their income drop by over a half.

The key, say retirees, is to start saving at an early age, with 53% of those surveyed saying this is the most important piece of financial advice they'd give. They'd also encourage the younger generation to save little and often and to live within their means, and crucially they'd advise those still working to develop a proper financial plan, both to ensure a comfortable retirement and so they're able to leave a legacy.

It's a good message for pre-retirees to take on board, and luckily with a bit of forward planning it's perfectly possible to enjoy a comfortable retirement – regularly putting money into a pension and ideally a separate savings account can ensure your retirement reality will live up to your aspirations.

What Next?

You could increase your income in retirement by up to 40% by using our online annuity planner

Need some more information on our retirement? Check out our Retirement guides

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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