HSBC Insurance’s Future of Retirement: It’s Time to Prepare report has concluded that over half of people in the UK have never accessed financial education.
The report shows that 56% of people have not sought any financial education, leading to a related shortfall in people’s levels of understanding of their finances, with the result that they feel ill-prepared for later life.
Also, 37% of people in the UK have never accessed any form of professional financial advice.
While 70% of people in the UK feel they understand their short-term finances very well, only 38% have the same level of understanding of their long-term finances. Furthermore, only 25% of people feel ‘very well prepared’ for retirement.
The report claims many people are not taking adequate measures to prepare for later life. Only 21% of people have cut debt as a priority in order to ensure they are better financially prepared for the long term, while 14% are reducing retirement savings or stopping saving for retirement altogether as a result of the economic downturn.
HSBC has compiled the ‘3Rs of financial planning’ to help people become more financially literate. I says people should: review their finances with a professional reduce their debt and outgoings and regularly contribute to their savings for retirement.
Ian Martin, head of retirement businesses at HSBC Insurance UK, said: “The Future of Retirement report reveals that people are not accessing sufficient financial advice and guidance to help them plan for their retirement.