Retirement out of reach for two in five workers, says HSBC report

Business Sunday 14/February/2016 19:10 PM
By: Times News Service
Retirement out of reach for two in five workers, says HSBC report

Muscat: Sixty-five per cent of pre-retirees aged 45 and above would like to retire within the next five years if circumstances allowed, but 38 per cent of these say they are unable to do so, according to HSBC’s report ‘The future of retirement healthy new beginnings’.
Financial pressures are so great that 18 per cent of pre-retirees worldwide predict that they will never be able to retire fully. This is almost twice the proportion that said the same in 2015, when 10 per cent of pre-retirees expected never to be able to afford to fully retire.
In the survey of more than 18,000 people in 17 countries worldwide, HSBC found that the desire to retire among 45+ pre-retirees is strongest in Argentina (78 per cent), France (77 per cent), China (75 per cent) and in the UK (75 per cent). Of those aged 45+ who would like to stop working and are unable to do so, 81 per cent say this is because they would struggle financially.
HSBC’s report also reveals that 55 per cent of working age people over 45 who would like to retire in the next five years want to do so to have the freedom to travel or pursue other interests, and 44 per cent say they would like to spend more time with family. Nearly one in three (29 per cent) say they would like to retire because they are tired of the everyday routine of work and almost a quarter (23 per cent) say it is because their work is having a negative impact on their mental and/or physical health.
Working age people over the age of 45 who have a retired partner are most likely to want to retire in the next five years (81 per cent), with 39 per cent saying they would like to do so to join their partner in retirement.
Of those 45+ pre-retirees who would like to retire but are unable, 64 per cent say this is due to not having saved enough, 32 per cent say it is because they have dependants who rely on their income and 24 per cent cannot retire due to having a lot of debt.
Abdulqader Al Sumali, head of Retail Banking and Wealth Management in HSBC Bank Oman said: “We hope that the findings and recommendations of this report will inspire the Omani nationals working in the private and public sectors to take proactive steps towards saving for their retirement and diversifying their income. Unforeseen medical expenses, tending to the financial needs of dependents and being able to pursue personal aspirations are some of the critical reasons why people need to plan for retirement early.”