HSBC’s report about British attitudes towards retirement makes for grim reading, says Allister Heath of City AM.
- 17% of respondents don’t know what their main source of income will be.
- 21% believe it will be state pension.
- 9% will be relying on personal pensions.
- 4% cite selling property.
- 39% have some form of strategy.
By contrast, twice as many people in Malaysia, China and India have a financial plan. So what’s wrong here in Britain?
First too many Britons rely on the state, even though the state pension will “by necessity be pathetically low”. Second, financial illiteracy means millions don’t understand (or trust!) financial products. Thirdly, many can’t work out how much they need to put by, and those that do don’t like the answer so do nothing at all! Lastly, the public needs a reality check. “You can’t hope to retire in your 50′s like your parents, if you’re going to live to be 95″.