28JUL 2021
Income expectations for those approaching retirement exceed what retirees receive
0
%
of current annual income is how much people aged 55+ think they will need in order to live comfortably once they retire
0
%
of final salary is on average how much retirees are actually receiving
What people aged 55+ expect they will need versus what is actually received in retirement
Non-Retired
Percentage of current income they think they will need per year to live comfortably in retirement
Retired
Percentage of final salary being received per year in retirement
1%-20%
21%-40%
41%-60%
61%-80%
81%-100%
Over 100%
Don't know
The cost of living in retirement takes up more income than anticipated, leaving less than expected for fun and exploration:
Retired:
Estimated actual spending of annual retirement income
Non-Retired:
Estimated expected spending of annual income during retirement
Living Expenses
Travel
Healthcare costs (their own or someone else's)
Hobbies
Buying a property as an investment
Financial support for relatives e.g. education costs
Buying a second home
Other
Encouragingly, more than 4 in 5 retirees consider their retirement income adequate, but 59% would like to increase their income
Retiree opinions on whether their retirement income is sufficient
Yes, it is sufficient to live comfortably
Yes, but I could use a little more income
No, I do not have enough income to live comfortably
0
%
consider their retirement income sufficient
Those describing their investment knowledge as “advanced/expert” are more likely to be living comfortably on their retirement income than those who feel they have less knowledge
Yes, it is sufficient to live comfortably
Yes, but I could use a little more income
No, I do not have enough income to live comfortably
0
%
consider their retirement income sufficient
Yes, it is sufficient to live comfortably
Yes, but I could use a little more income
No, I do not have enough income to live comfortably
79
%
consider their retirement income sufficient
Yes, it is sufficient to live comfortably
Yes, but I could use a little more income
No, I do not have enough income to live comfortably
91
%
consider their retirement income sufficient
People are, however, investing more at retirement than expected, indicating an understanding of the role investing can play in growing retirement income:
Proportion of total investments and savings for retirement allocated to investments on entering retirement
0%
0%
Retired: actual
Non-Retired: expected
People yet to retire feel they need to be saving more of their annual income than they currently are, in order to live comfortably in retirement
Currently saving on average
0
%
Feel the need to save on average
0
%
But those who describe themselves as having an “advanced/expert” level of investment knowledge have a smaller gap between what they save and what they think they should be saving
Currently saving
Feel they need to be saving to live comfortably
Beginner / Rudimentary
11
%
0
%
Intermediate
12
%
0
%
Expert / Advanced
13
%
0
%
When it comes to making investment decisions for retirement, research and advice is key
People's top three important sources of information about these investments:
1
Own research from
third party sources
2
Financial
Adviser
3
Pension provider /
company
Current levels of savings and investments by those yet to retire may not prove enough to cater for the plans and expectations people have for this stage of their life.
Investing in retirement can help people bolster their income and achieve the lifestyle they want and deserve.
Schroders commissioned Research Plus Ltd to conduct, between 20th March and 23rd April 2018, an independent online study of over 22,000 people in 30 countries around the world, including Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, the Netherlands, Spain, UAE, the UK and the US. This research defines “people” as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years.
