Today’s workers will run out of savings just seven years into their retirement, according to a report published today by banking group HSBC.
HSBC’s The Future of Retirement: A new reality study found that the average retirement in the UK is expected to last 19 years, but that average retirement savings will be used up in a little over a third of that time (37%), leaving people entering a period of significantly reduced living standards.
This 12-year shortfall in the UK is the worst identified by the study, which covers 15,000 people in 15 countries around the world.
HSBC predicts that the situation is likely to worsen as life expectancy continues to rise around the world, and people fail to face up to the reality of making up the shortfall while they can.
Christine Foyster, head of wealth development, HSBC UK said: “The concept of retirement is evolving all the time, and we know many people aren’t prepared. But now we know by just how much…..