YEREVAN, September 28. /ARKA/. HSBC’s report found 53% of retirees say that ‘Start saving at an early age’ is the best financial advice they have ever received, ARKA reports referring to the results of The Future of Retirement study.
HSBC has been conducting the “Future of Retirement” research since 2005, and a total of 125,000 have been interviewed so far. The current survey involved some 16,000 people from 15 countries (Australia, Brazil, Canada, China, Egypt, France, Hong Kong, India, Malaysia, Mexico, Singapore, Taiwan, United Arab Emirates, Great Britain and the USA).
The survey found 66% saw their income fall on retiring, and 21% saw it fall by more than half. 12% of working age people expect never to be able to afford to fully retire.
The study also showed 42% expect to semi-retire, on average at age 57 and 64% of semi-retirees wish they had worked full-time for longer.
HSBC’s report found that people’s expectations of a work-free retirement dwindle as they enter old age, with a sixth of people (17%) between 55-64 years of age saying they expect they will have to continue working indefinitely. This compares to 10% of 25-34 year-olds.
“Today, when Armenia stands at the forefront of pension reform, we believe that a good piece of financial advice and views from those who have passed through all steps of retiring and planning for retirement is what our customers might need. HSBC has been conducting At HSBC, our purpose is to help customers fulfil their hopes and dreams and realise their ambitions, for themselves and their families, by enabling them not only to manage their financial affairs today but also to plan for their long-term financial future”, said Mariam Adamyan, HSBC Bank Armenia cjsc Manager Communications.
The study also showed that 37% of pensioners’ income is from state benefits and pensions, and 52% saw their outgoings stay the same or increase on retiring.
As to retirement planning, 63% of retirees have planned informally for their retirement and only 26% of retirees have used a professional financial adviser. 56% of retirees are still saving after retirement to some extent for later life, with just 38% claiming not to save anything each month.
HSBC’s research identified some actions, which may help retirement savers plan a better future for themselves, i.e. not to rush into retirement, not to rely on one source of retirement income, to plan retirement with family in mind and to be realistic about retirement outgoings.
Pension reforms were kicked off in Armenia on January 1, 2011, by embedding voluntarily funded pension system. Mandatory funded pension system is expected to be introduced in the republic on January 1, 2014, and will refer to all the citizens born after January 1, 1974.
Due to the funded pension system retirees will be able to collect their pension amount. All workers, the self-employed and villagers of up to 40 years old will be able withdraw 5 % of their salary for the pension fund, another 5%, but not over 25,000 drams (300,000 for entrepreneurs), will be contributed by the state.
HSBC Bank Armenia is a member of HSBC Bank plc. It was registered in Armenia in 1995. Its shareholders are HSBC Europe BV that owns a 70% stake and Wings Establishment (30%). HSBC Bank Armenia joined NASDAQ OMX Armenia stock exchange in 2009. ($1=405.62drams). N.V. –0–
