Retirement: Expectations VS Realities

To most employed, the concept of retirement is an abstract idea- an event, a long way into the future. It is similar to dying and many accept the idea of not thinking about it. Many important and much needed activities are put off due to this reasoning. These moves, if done, could make old age much more bearable, both for the retirees and  for their heirs. The list of activities include writing living wills and estate planning.

An HSBC Group conducted study revealed that pre-retirees contemplating retirement either work on a new funding model or are out of touch as to where exactly their money ends up. The method present day retirees fund the spending are different from future retirees. This finding was based on surveying 1,000 Americans. The response itself forms a portion of a bigger effort where about 18,000 retired and working people spread across 17 nations were subjected to poll questions concerning retirement issues.

The list of other highlights in the survey includes the finding that US pre-retirees have a greater propensity than present retireees to expect their income from future retirement through selling property-either by selling their primary or a secondary home. A greater percentage (71 percent) of the pre-retirees having children expect that they will enjoy a happy retirement life compared to workers  (66 percent) who have no offspring. About 21 percent of pre-retirees expect that an inheritance will fund their post-retirement life. The inheritance component takes up eight percent of retiree funding.

A majority of retirees-about 52 percent- use cash to fund retirement. After cash comes stocks, and is preferred by 38 percent of those surveyed. Mutual funds are preferred by 32 percent. A few even plan to depend on the income of their partner. The last category is 29 percent. When all countries are concerned- about 17 of them- the median comes to 41 percent. The United States is superseded only by Hong Kong. The Special Administrative Region clocks at 62 percent. Singapore comes third, at about 59 percent.

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