A majority of people plan to work post-retirement, as they feel gap between actual savings and amount needed has widened: HSBC Report

Over half of people expect to work after retirement, according to the inaugural HSBC Quality of Life Report. Younger generations hope to retire earlier than their predecessors. But the financial implications of living longer and other headwinds led to 85% of those surveyed citing financial concerns as a key motivation behind the decision to continue working in some capacity beyond retirement. Financial reasons included ensuring financial security, affording a comfortable lifestyle, and meeting financial obligations. Many also alluded to more holistic reasons, including staying engaged and active (70%) or building skills and knowledge (51%). 

The HSBC Quality of Life Report gathered data from 2,250 respondents across nine different markets; mainland China, Hong Kong, India, Malaysia, Mexico, Singapore, United Arab Emirates, United Kingdom and United States.

Despite most people already saving for retirement, over half of respondents feel financially unprepared for this stage in their life. On average, there was gap of 71% between actual retirement savings and the amount needed. In Hong Kong, people anticipate needing the most savings to lead a comfortable lifestyle during retirement at USD1.1 million, followed closely by Singapore’s USD936K, mainland China’s USD929K and Malaysia’s USD829K. And, in India, respondents estimated needing the least at USD 302K.

With the rising cost of living, this gap is growing. As much as 42% of respondents were concerned about the impact of inflation eating into the value of their savings, while 40% were worried about higher healthcare costs. Notably, respondents in Singapore and Hong Kong expressed heightened concerns about healthcare costs, more than any other market surveyed. 

Sandeep Batra, Head- Wealth and Personal Banking, HSBC India, said, “Poor financial management can significantly diminish the quality of one’s retirement years. Our research underscores the critical role of goal planning and its profound impact on overall personal well-being. By prioritizing money management and accessing appropriate financial guidance and products, individuals can work towards achieving their financial aspirations, including a secure retirement.” 

Quality of Life Index Findings 

The Quality of Life Index is based on assessment against three key dimensions: physical wellness, mental wellness and financial fitness, all three of which are inextricably linked. Those who rated themselves as physically or financially fit were significantly more likely to score above average for mental wellness. 

The survey holistically explored the financial goals, life decisions and expectations of individuals as they look to future-proof their quality of life. 

Other key findings from the HSBC Quality of Life Report include: 

• Millennials aspire to retire 7 years earlier than Boomers on average. 

• The impact of current economic uncertainty is apparent; 58% of global respondents want to gain wealth for financial security in the present and near-term future as a top financial goal. 

• Over one-in-four individuals plan to relocate at some point to achieve a better quality of life. 

• Less than half of respondents have written a will and 20% say they are unsure how to start with legacy planning.