There is some concern for the elderly in the UK following research conducted by HSBC, which shows that an average person’s retirement funds will last just 7 years. An average person in the UK is expected to live off their retirement savings for at least 19 years, however media reports on February 20, 2013 have cast light on a potential worrying situation.
The problem does not only occur in the UK. Around the world people are struggling to live off their retirement plans. HSBC’s study says that most people will run through their savings just halfway through their retirement period. The problem in the UK is bleak, with one in 5 people not saving any money for post-retirement life.
The head of wealth development at HSBC UK, Christine Foyster, has said, “People are living longer, through tougher economic times, but their expectations about their standard of living in retirement remain unchanged”. Foyster went on to say that people have been avoiding the inevitable situation of them running out of funds.
Chief executive of the National Association of Pension Funds Joanne Segars has also said that the UK is in the process of making its state pension simpler, this will allow for future retirees to have a more stable future after retirement.