Dive Brief:
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HSBC Group reports that average Americans feel they will need to work 5-7 extra years compared to current retirees, but research shows that due to health factors, that's an unrealistic goal.
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HSBC’s study, Future of Retirement – Generations and Journeys, found that American workers' optimism knows no bounds when it comes to working well beyond the traditional retirement age, according to PlanSponsor.
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The HSBC survey also found that 44% of American pre-retirees believe they started saving too late, and working age Americans already saving are not confident they are saving enough (33% say they should have saved more already by putting aside a larger share of income). HSBC’s report also found 14% of working-age Americans are delaying retirement savings, including 3% of workers older than 60. Â
Dive Insight:
HSBC's research offers ideas for employees to turn their retirement planning around, and HR and benefits leaders should be there to provide tools and education to facilitate it. For example, employees should consider all retirement expenses when planning. While 40% of retirees cite paying off credit cards as a regular expense, 20% of pre-retirees think they won't have credit card balances when they retire.
Also, HR needs to let workers know that anything can happen and encourage preparedness. For example, 35%Â of pre-retirees saving for retirement have either halted or struggled to save at some point. Part of any retirement planning education process must include expecting the unexpected.