HSBC Issues Third Annual Report on Future of Retirement in 21 Countries

The third annual HSBC Future of Retirement study finds that, far from being a drain on society, older people are huge contributors to the economic and cultural wellbeing of their nations. In fact, rather than being dependents whose care drains vital resources from nations struggling to cope with ageing populations, those in their 60s and 70s--through taxation, volunteer work and the provision of care for family members--are the foundations upon which their nations build.

With respect to employment, the report shows that globally, "large proportions of the over-60s remain in work. In mature economies, between a fifth and a half of people are still in work in their 60s. Even in transitional economies, there are large numbers active in the labour market in their 60s and 70s."

Future of Retirement: The new old age, written in conjunction with the Oxford Institute of Ageing, is available for download. In addition, country-by-country fact sheets are available at HSBC Global Forum on Ageing and Retirement website.

Source: HSBC Insurance Press Release (May 22, 2007)

Global Retirement Survey Shows Traditional Retirement Model Weakening

People want to abandon traditional models of retirement in favour of self-sufficiency and a mix of work and leisure, according to what HSBC Holdings calls "the largest global survey into attitudes towards ageing and retirement ever conducted." Following up on its initial survey released in 2005, HSBC expanded its survey to cover 20 countries. From its survey of 21,000 people and 6,000 companies, the survey finds, among other things, that:

• 43% want to self-fund retirement
• 36% support compulsory saving for retirement--the first choice option for funding later life
• 72% want to scrap mandatory retirement
• 49% of employers recognise the high value of older workers, but many lack the practices to attract and retain them

Stephen Green, Group Chief Executive, HSBC Holdings plc, said HSBC's research “shows that individuals increasingly expect to bear their own costs in later life, but governments and business must understand their role in continuing to support individuals. They cannot afford to shy away from the enormous challenges and opportunities presented by global ageing.”

Future of Retirement: What the world wants, written in conjunction with the Oxford Institute of Ageing, is available for download as either an executive summary, a consurmer report, or an employer report. In addition, country-by-country summaries are available at The Future of Retirement website.

Source: News Release HSBC Holdings plc (April 26, 2006)

Survey: Future of Retirement

The international banking group HSBC Group has published a comprehensive study on global attitudes to ageing and retirement, which shows that for many people traditional retirement is a thing of the past: 80% want to scrap mandatory retirement while just 14% equate financial independence with old age. Entitled "The Future of Retirement." the study examines attitudes in 10 countries (Brazil, Canada, mainland China and Hong Kong, France, India, Japan, Mexico, the UK and the USA). In addition to finding that what people want is greater choice in when and how they retire.ow they retire, less than a quarter (21%) said that never working for pay again would form part of their ideal retirement.

The median age of the global population will increase dramatically by 20404, straining the funding of retirement. But given the choice between increasing taxes, reducing pensions or raising the retirement age to ease this burden, 45 per cent chose the latter, emphasising the desire of many to make their own decisions. Just 26 per cent said they would accept higher taxes. Only 15 per cent opted to reduce pension benefits.

However, while the research uncovered a growing desire to redefine how we traditionally think about later life, it also found that people in many countries are unsure of where to go to find appropriate advice. Almost two-thirds (63 per cent) of those surveyed said they had begun to prepare for retirement but most of this was restricted to reading up on the subject and discussion with family and friends.

In addition to publishing the survey, HSBC has created a Future of Retirement website which offers interactive test for determining how prepared a person is for retirement and retirement solutions offered in various countries.

Source: News Release HSBC Media (May 10, 2005)