Can You Afford to Retire? Likely Not Yet, Study Finds
U.S. workers toil an average of 35 years, a full five years longer than their global counterparts. And it's not simply because Americans are more industrious by nature.
"It reflects a higher level of awareness around the cost of retirement and less dependence on government pensions," said Michael Schweitzer, global head of sales and distribution at HSBC (HSBC) - Get Report .
According to HSBC's Future of Retirement study, younger generations expect saving for retirement to take longer than their retired counterparts. Americans preparing for retirement, for example, expect to save seven years longer than current American retirees did.
The study, which tapped into the views of 18,207 people in 17 countries, revealed that 44% of American pre-retirees wish they started saving earlier. While 86% of working people have started saving for retirement, 35% of those have either stopped or faced difficulties saving.
Meanwhile, the study showed that 14% of pre-retirees have not started saving for their retirement. And while those closer to retirement are more likely to have started saving for retirement, 12% of people in their 50s have still not started saving.
"People are afraid to confront their financial realities," said Schweitzer.
The results also showed American men save earlier and more than women; 17% of women have not started saving for retirement at all, compared to 10% of men. On average, men began saving at the age of 29 while women waited until 34.
As to how they are funding their retirement, 56% of retirees in the U.S. are using cash savings, the third-highest amount globally. Other forms of funding include Social Security (51%), stocks (38%), mutual funds (32%) and a spouse or partner's income (29%), according to the survey. Also, 17% of pre-retirees believe that income from downsizing or selling a property is likely to help them fund their retirement.
Finally, the survey recommends working people seek financial advice from a professional about saving for retirement, pointing out that 22% of pre-retirees have never received advice or information about retirement.