Nine per cent of respondents to a global poll said they considered paid employment a main source of retirement income.
HSBC’s survey of 17, 000 people in 17 countries also revealed that—as we discovered during the recession — paid employment is not a guarantee. For those who are unable to work past the standard (European) retirement age of 62 due to health reasons or a lack of work , it’s important that they have built up savings.
Moreover, more and more countries have started upping the retirement age. Britain, for example, will raise the retirement age, and therefore the age citizens start receiving government pensions, to 68 by 2043.
With baby boomers expected to leave the workforce in increasing numbers every year, and fewer people of working age to support the system, even Europeans can no longer depend on government pensions. Simultaneously, the prevalence of private-sector defined benefit pension plans is also on the decline.
Moral of the story? Start saving.