Saving for retirement is one of the biggest concerns for people all over the world, and new research has found that this uncertainty may be warranted.
According to CNBC, a recent report from UK-based bank HSBC found considerable discrepancies between most workers’ will to retire in the near future and their actual ability to do so.
As part of the study, HSBC surveyed 18,000 people online from 17 countries around the world. Approximately 65% of respondents would like to retire within the next five years, but 38% feel that this is an impossible goal.
“Financial barriers are preventing many people from retiring when they would like to — or, in some cases, at all. Almost one in five people fear that they will never be able to retire fully,” said Charlie Nunn, head of wealth management at HSBC.
While the improvement of healthcare on a global scale is certainly beneficial, governments are now tasked with finding different ways to bear the cost of aging populations. Therefore, there is less money available for workers towards the end of their careers, forcing them to work longer than expected.
In 2014, Gallup published a similar report claiming that nearly half (49%) of baby boomers still working say they don’t expect to retire until they are 66 or older, including one in 10 who predict they will never retire.
According to local Massachusetts news affiliate WWLP, a recent University of Michigan study also found that retirement is now more elusive than ever. In fact, about one third of the study’s respondents who had set their “goal retirement age” several decades ago are now unable to retire as soon as they had hoped.
As for the research from HSBC, most respondents said that they would like to give up work for good so they can spend more time with family. Nearly 33% said they were just bored with their daily routine, and about 25% believe their current job is having a negative impact on their health.
Nunn recommends that young adults start saving as soon as possible to reach their retirement goals. While it may seem like small potatoes at the time, each deposit a person makes in their savings account will make their dream of retiring early more likely.
“People should consider these aspirations when planning for retirement and ensure they are making sufficient financial provisions for this new chapter in life. Even small amounts saved today can lay the groundwork for a comfortable retirement tomorrow,” Nunn added.