Recent HSBC research identified four broad actions which may help today’s retirement savers to create an informal plan and work towards a better financial future for themselves.
1. Be realistic about your retirement aspirations
The research indicates that more than half of retirees (53%) have been unable to realise at least one of their hopes and aspirations since retiring.
Retirement can offer many choices. Decide what kind of retirement you want and be honest with yourself about how much it will cost.
2. Review your long-term working plans
HSBC findings suggest that almost half (47%) of working-age people plan to semi-retire before fully retiring.
Consider at what age you can realistically afford to fully retire, and if you expect to semi-retire or keep working for longer.
3. Consider your wider financial commitments
There is evidence that almost three fifths (57%) of working-age people and half of retirees (50%) provide regular financial support to at least one other person.
Providing financial support for family members – your partner or spouse, your children, your ageing parents – may be a reality through your working life and into your retirement. Consider your own and your family’s long-term financial needs, and make sure to include both in your retirement planning.
4. Have a clear retirement plan
According to the HSBC findings, more than half (54%) of working-age people who have received, or expect to receive, an inheritance believe it will fully or partly fund their retirement. However, only a third (33%) of all working-age people have received an inheritance.
Consider how you will fund your retirement and don’t bank on receiving an inheritance. Make sure you have a realistic financial plan in place and seek professional financial advice if you need help.