Over a quarter (27%) of international employees are concerned about the possibility of having to work longer than they wanted to due to financial constraints later in life, a report from HSBC reveals.
The global study, The Future of Retirement, found that this fear was most prevalent among countries where the state retirement age was currently under review such as the UK (40%), US (40%) and France (34%).
However, in contrast to these workers, over one third (35%) of employees on a global scale said they aspired to continue working to some extent in later life.
The willingness to demonstrate a more flexible attitude to where work ended and where retirement began was most prevalent in the emerging markets of Latin American and Asia where, for example, almost half (47%) of employees in Singapore aspired to carry on working into retirement, compared to just 19% in France.
On average workers said they would need 78% of their current income once they entered retirement in order to sustain a comfortable lifestyle - far higher than is likely to be achieved.
Over half of non-retirees (56%) globally admitted that financially they were not preparing adequately for a comfortable retirement - this peaked at 66% for respondents in the UK.
While most individuals expected their incomes to fall during retirement, many expected their financial outgoings to be maintained at current levels or possibly increase in retirement. Across all countries surveyed, just 31% thought that their retirement income would stay the same or increase, while almost half (46%) believed their retirement outgoings would stay the same or increase.
HSBC said these findings in retirement preparation shortfall would have a major impact on people's ability to fulfil their lifestyle aspirations in retirement. This was represented in different ways across the countries surveyed, with respondents in Canada (43%), the US (37%) and Australia (37%) most likely to think their health might suffer as a result of income shortfalls in retirement.
While 62% of respondents in Britain were most concerned about struggling with food and fuel costs and being forced to cut down on everyday spending.
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First mentioned in Cridland Report