The report shows that 56% of people have not sought any financial education, leading to a related shortfall in people’s levels of understanding of their finances, with the result that they feel ill-prepared for later life.
While 70% of people in the UK feel they understand their short-term finances very well, only 38% have the same level of understanding of their long-term finances. Furthermore, just one in four (25%) people feel “very well prepared” for retirement.
The report also highlights the fact that many people are not taking adequate measures to prepare for later life. Only 21% of people have cut debt as a priority in order to ensure they are better financially prepared for the long term, while 14% are reducing retirement savings or stopping saving for retirement altogether as a result of the economic downturn.
Ian Martin, head of retirement businesses at HSBC Insurance UK, said: “The Future of Retirement report reveals that people are not accessing sufficient financial advice and guidance to help them plan for their retirement.
“A limited knowledge of financial education makes it very difficult for people to take control of their retirement planning and save for the long term. Without adequate preparation and planning people may well be faced with a shortfall in their savings pot and the prospect of a troubled retirement.”
