Americans Having to Save Longer for Retirement
Americans are planning to save seven years longer for their retirement than current retirees did, according to a new study.
HSBC’s Future of Retirement – Generations and Journeys surveyed over 18,000 people in 17 countries, and found that Americans are working longer than people in other countries. On average, Americans work five years longer than their global counterparts (35 versus 30 years).
One reason for this discrepancy is that they rely less on their children for support (3% in the United States compared to 12% globally). In Hong Kong and Singapore, retirees receive much more help from their kids (41% and 34%, respectively).
Instead of counting on children, 56% of American retirees are using cash savings to survive retirement, which is the third highest total of any country in the survey. Social security (51%), stocks (38%), mutual funds (32%) and a spouse/partner’s income (29%) also help Americans fund retirement. Americans are more likely than other retirees to sell property (10%).
Even though Americans are saving earlier and working longer, many believe they still aren’t putting enough aside. 44% wish they had started saving earlier, and 33% said they regretted not saving a larger portion of their income.
Unfortunately, many are not saving at all. The report found 14% of working age people had not started saving for retirement, including 3% of individuals 60 or over.
Other key findings include:
- American men begin saving earlier than women: men start at 29, while women wait until 34
- 22% of working adults have never received information or advice about retirement
- 42% of people over 60 plan to move into a retirement home
- 55% of those in their 40s are supporting others
- 35% of pre-retirees have stopped saving or faced difficulties during their retirement planning process