- Working Americans expect to work 5
years longer than those who are retired
- 44% of American pre-retirees wish they
began saving earlier
- 52% of American retirees are using cash
savings to fund retirement
- On average, men begin saving for
retirement at age 29, 5 years before women
- 35% of pre-retirees who are saving for
retirement have stopped or faced difficulties in the savings
process at some point
Americans preparing for retirement expect to save seven years
longer than current American retirees did, according to HSBC Group
research. However, Americans are similarly underprepared for
retirement as global pre-retirees who also cite a seven year
gap.
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HSBC’s latest Future of Retirement – Generations and Journeys
report surveyed 18,207 people in 17 countries worldwide, including
1,009 respondents in the United States, to understand how
individuals can better prepare for their financial security at all
stages of life.
Michael Schweitzer, Global Head of Sales and Distribution,
comments:
“Americans did stand apart from the world in one important area:
the number of years in the workforce. Americans work an average of
5 years longer compared to their global counterparts - 35 years
versus 30, respectively.”
44% of American pre-retirees wish they started saving
earlier
Despite beginning to save for retirement earlier and working
more years than their global counterparts, many working age
Americans still don’t think they are saving enough. Almost half
(44%) wish they had started to save earlier, and 33% say they
should have saved more by putting aside a larger share of
income.
HSBC’s report also uncovers that almost one in seven (14%) of
working age people have still not started saving for their
retirement, including 3% of those aged 60 or over.
Schweitzer explains, “With individuals living longer and an
unpredictable financial landscape possible in the years to come,
it’s crucial that Americans prioritize planning for retirement
today in order to be adequately prepared for the future. Through
the power of compounding, people who start planning early can save
more than they imagined and help put themselves on a secure footing
for retirement.”
American retirees rely less on family and more on investments
or savings
According to HSBC’s research, American retirees rely less on
their children for support (3%) compared to the global average
(12%). Hong Kong and Singapore, in contrast, reported receiving
much higher proportions of financial support from children at 41%
and 34%, respectively.
Instead, over half of retirees in the US are using cash savings
to fund retirement (56%), the third highest amount globally. Other
forms of funding include social security (51%), stocks (38%),
mutual funds (32%) and a spouse or partner’s income (29%).
Americans are also more inclined than retirees in other
countries to depend on income earned from selling property, ranking
the third highest at 10%.
American men save earlier and more than women
Women in the US are less likely than men to have started saving
for retirement. HSBC’s research reports 17% of women have not
started saving for retirement at all, compared to 10% of men. On
average, men began saving at the age of 29 while women waited until
34.
Additional key findings
- 22% of pre-retirees have never received
advice or information about retirement
- 42% of people older than 60 expect to
move into a retirement home
- 55% of people in their 40s are
financially supporting others
- 59% say financial security is one of
the things they value most in life
Practical steps
HSBC’s research identified four actions that people can take to
help improve their financial well-being in retirement:
- Consider all your retirement
expenses: 40% of retirees cited credit card repayments as a
retirement expenditure, however, only 20% of pre-retirees expect to
be repaying credit cards when they retire. When planning for
retirement, make sure to list all your possible retirement
expenditures.
- Start saving earlier for
retirement: Plan to start saving for retirement earlier, to
help build a bigger fund and allow it to grow for longer.
- Seek advice from a professional:
11% of retirees have received financial advice from only friends or
family. Seek information from many sources, but make sure the
advice you get is professional.
- Expect the unexpected: 35% of
pre-retirees who are saving for retirement have either halted or
struggled to save at some point. No one can predict the future, but
preparing for unforeseen events can soften the impact of unforeseen
life events if they do occur.
Notes to editors
The Future of Retirement is a world-leading independent research
study into global retirement trends, commissioned by HSBC. It
provides authoritative insights into the key issues associated with
aging populations and increasing life expectancy around the world.
This report, Generations and Journeys, is the 13th in the series
and represents the views of 18,207 people in 17 countries and
territories worldwide (Argentina, Australia, Brazil, Canada, China,
Egypt, France, Hong Kong, India, Indonesia, Malaysia, Mexico,
Singapore, Taiwan, United Arab Emirates, United Kingdom, United
States). The findings are based on a nationally representative
survey of people of working age (25+) and in retirement, in each
country or territory. The research was conducted online by Ipsos
MORI in September and October 2015, with additional face-to-face
interviews in Egypt and the UAE. Since The Future of Retirement
program began in 2005, more than 159,000 people worldwide have been
surveyed.
HSBC Bank USA
HSBC Bank USA, National Association (HSBC Bank USA, N.A.), with
total assets of US $198.8 bn as of 31 March 2016 (US GAAP), serves
2.4 million customers through retail banking and wealth management,
commercial banking, private banking, asset management, and global
banking and markets segments. It operates more than 229 bank
branches throughout the United States. There are over 145 in New
York as well as branches in: California; Connecticut; Delaware;
Washington, D.C.; Florida; Maryland; New Jersey; Pennsylvania;
Virginia; and Washington. HSBC Bank USA, N.A. is the principal
subsidiary of HSBC USA Inc., an indirect, wholly-owned subsidiary
of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a member
of the FDIC.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. The Group serves customers worldwide from
around 6,000 offices in 71 countries and territories in Europe,
Asia, North and Latin America, and the Middle East and North
Africa. With assets of US$2,596 bn at 31 March 2016, HSBC is one of
the world’s largest banking and financial services
organizations.
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Media enquiries:For HSBC North America Holdings
Inc.Jeremy Balkin,
+1-212-525-7287jeremy.k.balkin@us.hsbc.com
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