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Retirees falling short of savings targets

28/09/2023

Over-55s are falling nearly £70,000 short of their goal when saving for retirement, research from HSBC has revealed, which could lead to problems later down the line as they are unable to support themselves from savings alone. The average aim is to save £99,495 by the end of their working life, but only manage to accumulate around £31,900.

The study found that after the age of 35, people’s savings habits appear to suffer - something that could leave them in need of a quick home sale when they reach retirement age. Increased financial responsibilities such as raising children, paying higher mortgages and dealing with debts could all contribute to this mid-life savings dip. Additionally, despite having slightly lower aspirations for nest egg savings, women tend to have a greater shortfall on retirement, falling £32,900 short of their goals.

Bruno Genovese, head of savings at HSBC, said the expense of retirement means people will appreciate having a substantial savings pot to supplement their regular income. “The increased financial responsibility that many people face around their mid 30s, such as buying a house, having children and taking on more debt, seems to be hindering long term savings habits, despite the good intentions,” he added.

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