Around a fifth working people between the ages of 55 and 64 believe that they will never be able to afford a pension, according to a survey by HSBC
In a report on the future of retirement, A new reality, published today, the bank said that, of the 1,000 UK respondents to its poll, 58% prioritise saving for a holiday over saving for retirement. Only a third (32%) said they would prioritise retirement saving. Two of the most popular retirement aspirations were to travel and take frequent holidays, (31% and 49%, respectively).
Those surveyed expect their retirement to last for 19 years, but HSBC's survey found that people's average retirement savings would only last for seven years.
Commenting on HSBC's findings, Tom McPhail, head of pensions research at Hargreaves Lansdown, said industry experts needed to talk to young workers today to inform them of how much they should be saving.
McPhail said: 'It is vital that everyone takes personal responsibility for the retirement savings,' adding that people should be thinking about if they are saving enough; if their money is invested well; and how they would draw their retirement income.
'Unless all scheme members are actively encouraged to address these questions and to plan for their retirement, it is likely that dire predictions about millions of people never being able to afford to retire are likely to come true,' he continued.
The HSBC report offered some practical tips towards a more comfortable future. They included the need for employees to: be realistic about their retirement needs; prioritise savings; be aware of how major life events affect savings for retirement; plan for the future; and use professional advice to improve savings.
