Saving earlier might not guarantee a successful retirement. Why?
Saving early might not be enough to ensure a comfortable retirement, and continuing to save during difficult financial times is just as important as when a person begins saving for retirement. According to a global report by HSBC analyzing responses from over 18,000 people in 17 countries, 14% of those not-yet-retired haven’t started saving for retirement, with a whopping 12% in their 50s. For those who have started saving for retirement, over one-third, 35%, have needed to stop saving or have had trouble meeting their savings goals. It is these “lost years” of savings that can destroy a successful retirement savings strategy, the researchers noted.
Additionally, the report findings show that while current retirees, globally, started saving for retirement at age 31, those who have yet to retire began saving at age 29 and plan on working an additional five years compared to their already-retired counterparts. This additional seven years of savings might still not be enough because of other factors eating into retirement savings and thwarting plans.
For more on this important research, check out our new article this Thursday.