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20 Feb 2013

Brits To Face Significant Savings Gap In Retirement

The savings of the average Briton are expected to dry up just seven years after they retire, leaving them without any for the last 12 years of their life, a study by HSBC showed today.

The average Brit intends to retire at 65 and thinks an income of around £22,500 a year would provide a comfortable living.

According to the report, ‘The Future of Retirement: A new reality´, adults retiring at 65 are likely to see their savings vanish by the time they turn 72. With the average life expectancy now at 84, this leaves 12 years of life without savings. However, this gap could widen to between 13 and 17 years for many in England and Wales, where the most common age of death is 85 for men and 89 for women, according to official data.

The study found that the savings gap faced by Britons is the worst among the 15 countries included in the research. The average adult around the world is expected to be left without any savings just over halfway through retirement.

Those who run out of savings and rely only on the income from their pension are likely to see their dreams of retirement full of holidays, home improvements and new hobbies dashed.

However, not many of those still working are ready to give up their comfort now for a more secure future. Just under a third of respondents said that they would put money aside for retirement instead of going on a holiday if they had to choose one year.

Copyright © M2 Bespoke 2013

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