In a recent HSBC global survey, the difference between the aspirations of many and the reality was amazingly stark. Of those surveyed who were over 45, 81% of them said they would be unable to retire when they wanted due to financial constraints.
The survey also found out that over 18% of people believed they would never be able to retire and this figure has almost doubled in the last few years.
Reasons given for the inability to retire when desired fell into three categories; not having saved enough, dependents who rely on my income and still have a lot of debt.
The above survey only reinforces what has been happening since the ‘Global Financial Crisis’. Since then the majority of governments around the world have reduced pension provisions and cut money into things like healthcare. This has resulted in people not being able or having the funds to retire when they wanted.
The survey also found that many people had no idea as to what health costs might be when they retire and how this would affect their income in retirement. For those not wanting to rely on public health services in the country where they retire they will almost certainly need private health care which can be very expensive.
For many working in good jobs their ability to retire has not only been influenced by a cut in government-funded pensions but also increasing education costs. Many parents and grandparents are facing the increased cost of university and education expenses which may involve them taking out loans to fund these costs.
The reality is that without careful planning for things like retirement and health many of us will not have the funds to enjoy a decent and healthy retirement. The key is to start planning early and to make sure we do all we can to maintain our health and reduce costs for medical insurance or care.
Astraasia would like to help people understand how much they need to save. We offer savings products which provide a defined level of growth during the savings period and an income portfolio which offers a fixed return.
If you would like help or advice when it comes to planning your retirement & discussing health insurance please email or call us.