Pre-retirees have to save an additional seven years compared with current retirees, according to a survey released Monday by HSBC.
“While there is much to learn from today’s retirees, younger generations must navigate their own path through the big events in their lives and a changing financial landscape,” Charlie Nunn, group head of wealth management, said in the report. “Starting to save early may no longer be enough to ensure a comfortable retirement, and continuing to save through the ups and downs of life is just as important.”
The average age at which pre-retirees started saving was 29, compared to 31 for retirees, and they still plan to work an additional five years, according to the report.
The bank surveyed more than 18,000 people in 17 countries for the report. More than 1,000 respondents are from the United States.
The report found that 14% of pre-retirees haven’t started saving for retirement, including 12% in their 50s. Of those who have, 35% have been forced to stop for some reason, or have had trouble meeting their savings goals. Over half of people in their 60s (52%) are still supporting other people financially, a percentage that actually increases among people in their 70s or older (64%).
Furthermore, few pre-retirees expect they’ll still be struggling with debt once they stop working. Just 20% said they expected they would still be making credit card payments when they retired, and 5% expect to be repaying other loans. However, 40% of retirees said they were still paying off a credit card, and 12% had other loans they were paying down.
In fact, 61% of people in their 60s were still borrowing, and 67% of those in their 50s were doing the same. Half of people 70 or older were borrowing money.
Over a third of respondents who were currently retired said they wished they had started saving earlier, and 31% wish they had saved a larger share of their income. Still, 34% don’t wish they had done anything differently.