Retirement independence a global goal

Canadians expect to remain more independent in their retirement than people in most other countries, according to a research report from global banking giant, HSBC, entitled The Future of Retirement: What the world wants.

In a survey of more than 21,000 people, the bank found some general trends which Canada largely conformed to, but with a more independent streak.

“[Our] 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,” says Stephen Green, CEO, HSBC Holdings. “They cannot afford to shy away from the enormous challenges and opportunities presented by global ageing.”

Overall, 43% of respondents said they wanted to fund their retirement themselves, either through their own savings or by continuing to work later in life. Far from relying on their governments, many seemed to want assistance in fulfilling these wishes, with 72% wanting to see mandatory retirement scrapped.

Among the 6,000 employers surveyed, 49% said they recognize the high value of older workers, but many lack the practices to attract and retain them.

It’s not just the money that has people wanting to work later in life — only 25% cited income as a reason to keep working. Nearly as many (22%) said they needed something meaningful to fill their time, with 21% seeing work as a means to remain physically active. Connecting with other people and mental stimulation both attracted 13% agreement.

Canadian respondents were far more supportive of individual choice than their global counterparts, on the question of when a person should retire. Among Canadians, 49% chose the somewhat vague “when the time is right” option, compared to a global response of 36%. The survey found 26% of Canadians thought a person should retire whenever they could afford it, compared to a global response rate of 15%.

Global attitudes leaned far more heavily in favour of retiring when the person is no longer able to work (25% compared to 13% of Canadians), while 21% thought there should be a set age, compared to just 10% of Canadians.

Perhaps reflective of more traditional values among the other countries surveyed, Canadians were more averse to relying on their children in retirement. Only 18% of Canadians said they expected to live with their kids, compared to 34% globally. Just 13% expected their children to help pay their living expenses, compared to 29% globally.

Canadian respondents were more open to having their children care for them, though, at 43%, which is more closely in line with global expectations of 52%.

Governments were also called upon by to impose compulsory retirement saving programs, with 36% supporting such a scheme, making that the most preferred option for retirement funding.

“The idea of a period of funded leisure at the end of one’s working life has become firmly established, evolving since the 1940s from being seen as a rest, to a reward and now as a right,” said Dr. Sarah Harper, director, the Oxford Institute of Ageing, which assisted in the research. “For the first time, though, The Future of Retirement research shows support globally for some form of compulsory savings for retirement.”

“The Future of Retirement: What the world wants” survey canvassed more than 21,000 individuals and 6,000 employers in 20 countries and territories. Representing 62% of the global population, the list of countries consists of: Canada, Britain, U.S., Hong Kong, China, Japan, Brazil, India, Mexico, France, Singapore, Saudi Arabia, Malaysia, Germany, Indonesia, Egypt, Poland, Russia, Turkey and Sweden.

The research was conducted by HSBC in conjunction with Harris Interactive, Age Wave and the Oxford Institute of Ageing. It is believed to be the largest study of its kind on retirement attitudes.

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com