Millennials Need To Get Real About Retirement, Claims Survey

Millennials around the world need to wake up to working and living longer and to shake off unrealistic dreams of retirement, says a new study.

Only 10% plan to work beyond the age of 65, according to Shifting Sands, a retirement report from HSBC Bank.

Millennials – 19 to 36 year olds – expect to retire earlier than previous generations at around 59 years old even though the current average age to stop working is 61.

The survey looked at the retirement plans of 18,000 millennials in 16 countries.

Six out of 10 agreed that they would have to work longer than their parents and need to save to support themselves in retirement.

Unrealistic retirement expectations

These thoughts have prompted millennials to start saving young. Two-thirds have already begun by the age of 26. They are also keener to take risks when investing.

Attitudes to money were also found to be strong, with 65% scrutinising their spending to find cuts to boost their savings and 61% seeking financial guidance and 51% moving money between accounts to find the best rates and deals.

Charlie Nunn, Group Head of HSBC Wealth Management said: “While millennials are broadly aware of the economic and demographic challenges they face, they do not appear to have grasped the full implications for their retirement.

“With low interest rates, rising healthcare costs and potentially less state support for retired people in the future, it has never been more important to save for a comfortable retirement.

Technology aids saving

“Starting to save early – and saving enough – can reduce the need to have to continue working in later life.”

More millennials view property as the best investment for retirement (47%), with cash (38%) and stocks and shares (29%) the next most favoured.

Technology is also making a difference to the way millennials save and invest.

Nearly half agree technology helps them make financial decisions (47%), while 35% research financial information online, 27% have online savings accounts, 19% check out online retirement calculators and 18% have a retirement planning app on their smartphones, laptops or tablets.

The countries millennials lived in included Britain, the United Arab Emirates, Hong Kong, Australia and Singapore.

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