Britons “Burying Their Heads in the Sand” over Pensions

A new report released by HSBC has highlighted the problem of what it calls “the ostrich generation”; Brits aware of the new challenges which they will face in retirement, but who have not taken many steps to address the situation.

People are aware that they face a longer time in retirement and pension payouts will be less generous than a generation ago. Yet the report also found that many were not well prepared for retirement, with 21% planning to live on their state pension alone, whilst 17% don’t know what their main source of income will be. Less than four tenths have got a financial plan ready for their futures, and half of all Britons expect to be worse off than their parents in retirement.

David Wells, head of investments, pensions and savings at HSBC urged for people to make preparations, commenting: "The emergence of this Ostrich Generation is a real concern. Britons know that they need to plan and save more for their retirement, yet are not turning this knowledge into action. People need to look around and take proper stock of what they need to do - they can no longer totally rely on the state or their employer to provide for them.”