Hsbc report on retirement reveals changing attitudes to work and pensions

By Simon Hayes on May 15, 2008 8:59 AM |

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RETIREMENT may be a long way from the minds of most Wharfers but HSBC have given everyone food for thought with their latest report.

The banking giant’s insurance arm published their latest Future of Retirement report on Tuesday. The survey of 40,000 people across 25 countries revealed most of us expect to work for longer and are making more detailed provision for retirement, reflecting a growing realisation that we can’t rely on a state pension.

Robert Lang, chief executive of HSBC Life, explained how the report’s findings showed changing attitudes to the challenge of funding retirement.

He said: “There’s a growing pragmatism about having to work until we’re older. It’s not something to be happy or unhappy about, it just is.

“What’s most interesting, particularly in the UK, was the three most popular remedies for the challenge were taxation solutions, increased working age and enforced savings – all pragmatic responses and all government led.

“But only 19 per cent had confidence the government would bear the majority of that financial burden so, although they are looking to the government for the solution, they are perhaps not sure that’s going to happen.

“The survey showed when it looked at the four pillars – government, self, employer, family – that self-reliance was a constant, which shows people are becoming more aware they need to take responsibility for themselves.”

With the credit crunch hitting all aspects of financial life, how does Mr Lang see people changing their plans?

He said: “Every individual will make their own assessment about their retirement needs but it reflects one of the key findings of the report, the risk of people being too dependent on just one form of saving.

“If you start saving for your retirement in your 20s and 30s it’s hard to know 30 years from now what will be the right investment to be in. Is it going to be property, stocks or bonds. What’s the right solution?

“People should be thinking about having more than one means through which to prepare for retirement.”

So, what should people be doing? “Contemplate your retirement,” he said. “Our view would be people need to think about it as soon as they can because that will give them more time to come up with a solution.

“The dynamic of what we’ll need in retirement is changing because life expectancy is increasing. People’s attitudes to retirement are changing so they need to figure out what they are going to do.”

simon.hayes@wharf.co.uk