This report lets you see for yourself what others think and feel about their retirement. I hope it will also encourage some readers to take more control of their own financial future. The ability to shape your retirement is in your own hands with the power of planning.

1. The Future of Retirement
The power of planning
UK Reportwww.hsbc.com/retirement
HSBC Insurance Holdings Limited
8 Canada Square
London E14 5HQ
© HSBC Insurance Holdings Limited 2011
All Rights Reserved.
Excerpts from this report may be used or quoted,
provided they are accompanied by the following
attribution: ‘Reproduced with permission from
The Future of Retirement, published in 2011 by
HSBC Insurance Holdings Limited, London.’
Published by HSBC Insurance Holdings Limited, London
Designed and produced by Global Publishing Services

2. Foreword Introduction
HSBC’sThe Future of Retirement programme is
a world-leading independent study into global
retirement trends. It provides authoritative insights
into the key issues associated with ageing populations
and increasing life expectancy around the world.
The 2011 global report, The power of planning, is the
sixth in the series and is based on interviews with
more than 17,000 respondents in 17 countries in
December 2010.
This country report, based on the views of 1,042 UK
respondents, explores how households in the UK
are likely to respond to the rapidly changing shape of
retirement over the coming decades. All data used in
this country report relates to the UK unless otherwise
indicated. For further global and regional comparisons,
please refer to the global report.
Welcome to the sixth Future of
Retirement report, researched
exclusively for HSBC.
A lifetime of working is likely
to create a strong appreciation
of the value of time and how
important it is to make the most
of every moment. For many
people retirement is something
to look forward to, which they plan in anticipation of
having time to do things they’ve dreamed of.
At HSBC, we help people to plan financially for their
future, both to realise their dreams and to help
them protect against the bad times which
sometimes threaten.
We believe it’s important to ask our customers what
matters to them and how they feel about the future.
This is why we invest inThe Future of Retirement,
across 17 countries and 17,000 people.The survey
findings are the real reflections of people in the UK
and across the world.
This report lets you see for yourself what others
think and feel about their retirement. I hope it will
also encourage some readers to take more control
of their own financial future.The ability to shape your
retirement is in your own hands with the power
of planning.
DavidWells
Head of Investments, Savings
and Insurance
HSBC Bank
The Future of Retirement2 3
„„ 56% of Britons see retirement as an age of freedom. Married couples are the most confident
about this
„„ UK respondents are concerned about occupational pensions: 57% of those who expect to be
worse off than their parents in retirement gave the reason that company pension schemes would
be less generous
„„ Only 42% had heard of the new National Employment SavingsTrust (NEST) which will be intro-
duced from 2012
„„ Men and women of all ages associate retirement with freedom, but women are on average 18%
more likely to associate it with financial hardship
„„ Only 40% of households have planned financially for their future
„„ Nearly one in five people do not know what their main source of retirement income will be
„„ Those who have plans for their futures are not only better prepared financially for retirement but
also feel more positive about their futures
„„ UK respondents are less likely than their global peers to have a financial plan, but they are more
likely to have taken professional financial advice
„„ Those who have financial plans and have taken professional advice are the best prepared of all
for the future, with 250% of the UK average level of retirement savings and investments
„„ Independent financial advisers are the most popular source of professional advice in the UK with
59% of advice-seekers consulting one; banks were the second-largest
„„ Respondents are more active online researchers than the worldwide average, with 45% in the
UK using this advice source
„„ For individuals who want to take action now to improve their financial well-being later in life,
there is a simple 5-step checklist based on the research
Key findings

3. The Future of Retirement4 5
Retirement landscape
The retirement landscape for the ‘baby-boomer’
generation, which is now entering retirement, will be
quite different to the one that their parents enjoyed
in the past and their grandchildren will experience in
the future.The United Nations Population Division
reports that in the past 30 years, the process has been
relatively stable with the percentage of the population
aged 65 and over increasing just slightly from 14.9% in
1980 to 16.6 per cent in 2010. However, this is set to
change: by 2050, 22.9% of the population is projected
to be aged 65 and over. This represents a squeeze
on those of working age, and on the state, to have
to provide retirement income and healthcare for the
ageing population. Adequate planning and preparation
for retirement will become more important than ever
as dependence on retirement savings grows.
0
20
40
60
80
100
%
Figure 1:
Aged 0-14 Aged 15-64 Aged 65+
1980 2010 2050
21
64
15
17
66
17
16
61
23
Figure 2:
An opportunity for a whole new chapter in life
A continuation of my current lifestyle
An opportunity to be a more flexible in how I work
A time for rest and relaxation
The beginning of the end
48%
10%
23%
11%
9%
Figure 3:
Having a strong religious faith
Having work you enjoy
Having ambitions and dreams
Continally trying new things
Avoiding stress
Good financial planning
Staying young at heart
Keeping fit
Loving family and friends
Not having to worry about money
Keep your mind sharp
56
73
51
43
64
63
70
29
65
37
12
0% 10 20 30 40 50 60 70 80
Aged 0-14 Aged 15-64 Aged 65+
1980 2010 2050
21
64
15
17
66
17
16
61
23
Figure 1: The baby-boomers enter retirement
Source: United Nations Population Division, World Population Prospects,The 2008 Division
Figure 2: How people perceive retirement
Figure 3: What is extremely important to a happy retirement
The changing shape of retirement
Faced with the universal challenge of funding an
ageing society, Britons remain upbeat in their
perception of retirement.
Nearly half (48%) see retirement as a new chapter in
life, and 56% associate retirement with freedom.
When considering what constitutes a happy
retirement, 70% said not having to worry about
money and 56% see good financial planning as
extremely important.
38% associate retirement with financial hardship, but
this peaks with women (49%), singles (40%) and the
cohabiting (49%).
Married Britons appear more secure, with only a third
(34%) thinking old age will bring financial hardship and
42% seeing it as a time of happiness.
With 29% believing that having work you enjoy is
extremely important in a happy retirement, it seems
that UK respondents are adapting to the new reality of
longer, less secure retirements in their willingness to
consider flexible work.The UK has actively sought to
encourage longer working lives through increasing the
State Pension Age (SPA) from 65 today to 68 by 2043.

4. Nearly one-quarter of Britons expect to be much worse
off than their parents in retirement.This rises to nearly
one-third of those without a financial plan. Nearly 58%
said that this was because the state pension was
as not generous as it used to be, while 63% were
concerned that their generation had not saved enough
for retirement.
A high number (57%) are concerned that company
pensions are not as generous as they once were.This
is certainly true, given that final salary schemes, which
were common 30 years ago are now largely extinct.
The retirees of tomorrow face a more uncertain future;
as a result there is a sense that a golden age has
passed and that the future will hold greater challenges.
The Future of Retirement6 7
Figure 4:
-60
-50
-40
-30
-20
-10
0%
BetteroffWorseoff
10
20
30
40
50
60
70
80
France
US
UK
Poland
Canada
Taiwan
Argentina
SaudiArabia
Singapore
Mexico
SouthKorea
HongKong
Brazil
UAE
Malaysia
China
India
-56
-37
-22 -20 -20
-4
11
16 17
23
29 31 33 34
42
62
69
Global average (11)
0
%
10
20
30
40
50
60
57
31
58
49
Figure 6:
Freedom Financial hardship
Male Female
People are living longer and need more savings
State pensions are not as
generous as they used to be
Company pensions are no longer
as generous as they used to be
My generation is not saving enough
Jobs and careers are less secure
Low interest rates will mean lower
returns on retirement savings
The global financial crisis has reduced
the value of my investments and savings
Higher taxis will reduce
the value of my retirement plans
My generation has borrowed too much
63
58
57
51
49
48
46
44
42
Figure 5:
0% 10 20 30 40 50 60 70
Figure 4: Better or worse off than your parents’ generation in retirement?
(net score)
Figure 6: Women associate retirement with financial hardship more than men
Figure 5: Why will you be worse off in retirement than your parents’ generation?
The shape of retirement is changing rapidly in the UK,
as the population ages and the previously generous
state and company benefit schemes become leaner.
The financial crisis has exacerbated the ageing
issue, increasing public debt and large government
deficits leading to cuts in public services. Women
are decidedly less upbeat than men about their
fiscal futures, they are 18% more likely to associate
retirement with financial hardship.

5. Shortfalls in retirement preparedness
Our findings reveal a ‘preparedness gap’ amongst
respondents. 93% of those we surveyed claimed
having enough money to live on in retirement as
important, but only 60% said they felt adequately
financially prepared.The preparedness gap in the UK is
further emphasised by how worried people are about
being able to cope financially in retirement: 62% said
they were either slightly or very worried.
The biggest reason why people are concerned about
coping financially in retirement is because they don’t
think they will get enough from the state pension.
Those admitting that they hadn’t saved enough
constitute 48% of respondents, and concern is
greatest among women in their 30s and 40s, at 57%,
suggesting that younger generations may be coming
to accept the shift in responsibility from state to the
individual.
Unforeseen events are also unnerving respondents,
yet only one-fifth of Britons (21%) feel that their family
is very prepared if something should happen to them,
suggesting a lack of asset protection and life insurance.
Debt is an issue for many in the UK too, and high
levels of household debt and the high cost of servicing
repayments are a barrier to higher savings both for the
long and short-term.
Clearly, there is a need to change current patterns
of household behaviour to ensure a comfortable
retirement.The new National Employment Savings
Trust (NEST) may help to achieve this, but 57%
are not aware of its existence, despite its planned
introduction in October 2012. Whatever impact the
scheme has on UK households, millions of people
could benefit further from having a financial plan and
seeking professional advice.
A worrying finding is that 17% of respondents do
not know what their main source of income will be in
retirement. Furthermore, 21% of respondents believe
that their biggest source of income will be the state
pension.The 9% who will be relying on personal
pensions is a small minority in comparison, and
these figures need to change if the UK is to be truly
prepared for the future of retirement.
igure 7:
Slightly worried
Very worried
Not worried
Not thought about it
Do not intend to retire
20%
42%
7%
1%
30%
48
59
36
41
30
26
14 14
19
Figure 8:
0
%
10
20
30
40
50
60
I haven’t
saved
enough
I don’t think
I’ll get
enough from
the state
pension (e.g.
social
security)
I won’t get
enough from
my work
pension
scheme
I’m afraid
of
unforeseen
events
depleting
my savings
I’m worried
about the
cost of
ill-health
I’m worried
that my
investments
won’t per-
form well
enough
I'll need to
support my
children or
grandchil-
dren
through
education
I’m
concerned
about the
cost of
looking after
my parents
in their old
age
I have too
much
outstanding
debt
Figure 7: Levels of concern about coping financially in retirement
Figure 8: Why people worry about coping financially in retirement
The Future of Retirement8
State pension (e.g. social security)
Don’t know
Defined contribution pension scheme arranged...
Defined benefit pension scheme arranged...
Individual personal pension scheme
Other savings and investments
An inheritance
Wages or salary from paid employment
Rental income
Socks and/or shares investments
Selling your primary residental propety
Selling assets tied up in investment propety
Support from children/descendents
Selling assets tied up in business
21
17
10
10
9
7
6
5
4
4
4
2
1
1
Figure 9:
0% 5 10 15 20 25
Figure 9: Over-reliance on declining state and company pensions
9

6. The Future of Retirement10 11
The power of planning
Table 1:The four consumer types
Global
(% of
global
respond-
ents)
UK
(% of UK
respond-
ents)
Consumer types
38% 36%
Non-planners: disengaged. These people are doing nothing by way of financial plan-
ning or financial advice. There is a complex mix of reasons why they do not make a
plan; many believe they lack the necessary household income.
12% 25%
Non-planners: advice-seekers. These people do not have a financial plan, though they
do at least take professional financial advice from time to time. They are likely to seek
advice around one particular need, rather than take holistic advice.
22% 13%
Planners: active self-guided. These people have a financial plan in place but do not
seek professional expertise to help them make sense of their finances. They are likely
to be younger, mid-to-high income and internet savvy.
28% 26%
Planners: advice-seekers. These people have a financial plan in place and also take
professional financial advice to help manage their finances. In many respects they are
very well prepared for retirement. They are more likely to be older and wealthier.
As we have seen, a greater onus will be put on
individuals to prepare for their own later lives. Currently,
financial planning behaviour in the UK falls short of the
global averages, with only 39% of UK respondents
having financial plans in place, compared to 50% on
average world-wide. However UK respondents are
more likely to opt for professional financial advice
instead, with Britons twice as likely as the global
average to take financial advice without a plan.This
finding suggests a tendency for the British to shift
responsibility for their financial concerns about the
future to professionals.
The group who most embraced financial planning are
young men (aged 30-39), 46% of whom did so.This
suggests, amongst men at least, a generational shift
in attitudes towards planning, as younger people see
that they are facing a long retirement with less state or
company pension provision than their parents.
Figure 10:
0
%
10
20
30
40
50
% Planners
40
46
34
38 39
37 37
40
All
Males
All
Females
Male
30-39
Male
40-49
Male
50-59
Female
30-39
Female
40-49
Female
50-59
Figure 10: Younger men more likely to have a financial plan
The planning premium
Our findings reveal that those with a financial plan for
the future enjoy several benefits over those who do
not – the ‘planning premium’ - and that these benefits
are both ‘hard’ and ‘soft’, including not only greater
and more diverse retirement savings, but also a more
positive outlook and fewer worries about later life.
Respondents who undertook financial planning were
more likely than non-planners to associate retirement
with positive ideas such as freedom and less likely
to associate it with negative ones such as financial
hardship. Although it is difficult to separate cause
and effect, these findings hold true across all age
and income ranges. Whilst these benefits may seem
obvious, the extent to which they are present in our
findings indicates a significant ‘soft’ benefit of planning
for the future today; those with a plan have fewer
sources of worry and stress.
When we look at the retirement savings and
investment levels of our respondents, we see that
those with financial plans have over four times (433%)
as much as non-planners.This shows that there
is a strong planning premium in the UK in hard
financial terms.
Figure 11:
0
%
10
20
30
40
50
60
70
80
70
50 49
28
49
27
47
23
32
20
31
16
28
13
16
5
15
22
1514
12
20
15
23
18
30
18
35
23
48
Freedom
Happiness
Opportunity
Satisfaction
Wisdom
Excitement
Hope
Wealth
Loneliness
Discrimination
Fear
Lossofmemory
Boredom
Poorhealth
Financialhardship
Planners Non planners
Figure 11:
0
%
10
20
30
40
50
60
70
80
70
50 49
28
49
27
47
23
32
20
31
16
28
13
16
5
15
22
1514
12
20
15
23
18
30
18
35
23
48
Freedom
Happiness
Opportunity
Satisfaction
Wisdom
Excitement
Hope
Wealth
Loneliness
Discrimination
Fear
Lossofmemory
Boredom
Poorhealth
Financialhardship
Planners Non planners
Figure 11: Retirement associations of planners and non-planners
UK
average
Non-
planners:
disengaged
Non-
planners:
advice
seekers
Planners:
active
self-guided
Planners:
advice-
seekers
All
non-
planners
All
planners
Total retire-
ment savings
and invest-
ments (house-
hold median)
£(GBP), to
nearest ‘000
53,000 14,000 42,000 123,000 132,000 28,000 123,000
% of global
average
100% 26% 79% 232% 249% 53% 232%
Table 2: Planners have more retirement savings and investments
These figures are calculated using median data, which can produce the same results in different categories

7. The Future of Retirement12 13
The advice advantage
Those who have a financial plan in place and sought
professional advice are the best off financially, with
the largest retirement assets of all four consumer
types.This reveals a further benefit for those who
combine financial planning with professional advice –
the ‘advice advantage’. Advice-seeking planners have
nearly two-and-a-half times (249%) more retirement
assets than the UK average. Whilst it is difficult to
separate cause and effect, these findings also hold
true when controlling for age and income.
Those who sought professional financial advice
showed a preference for independent advice channels
with 59% having visited an independent financial
adviser, with banks the second most popular source
of advice. Newer sources of advice such as online
research are used significantly more in the UK than
elsewhere globally.
The benefits of planning, especially when combined
with professional advice, that our research has shown
suggests that whilst the UK faces a challenge over the
coming decades in funding retirement, a wider culture
of financial planning would be beneficial to both
individuals and the economy as a whole.
Britons are on the whole relatively upbeat about
retirement, particularly married couples and those
on higher incomes, whereas women and those
closest to retirement find themselves feeling most
apprehensive.
At the same time there is widespread concern that
they will not be able to afford the sort of retirement
currently being enjoyed by their parents’ generation.
Such fears have been brought to a head by the impact
of the financial crisis, which is forcing the UK to come
to terms with structural problems in its pensions
system.The government is embarking on reforms that
will raise pension ages more rapidly than previously
planned with the state pension age for men set to
increase from 65 to 66 years as soon as 2016.
Large numbers of Britons are doing nothing about the
shortfalls in provision to come, though the possible
introduction of a universal state pension by the
coalition government should make the state pension
easier to understand.This could make it simpler to
convince UK households to take steps towards saving
for their own retirement.
For individuals and households who want to take
action now to improve their financial well-being in later
life, we have devised a simple 5-step checklist based
on the research:
1. Establish some clear goals,
both short and long term
2. Benchmark yourself
3. Establish a comprehensive financial plan
4. Implement the plan
5. Keep your plan under review
Further details on the 5-step process can be found
at the end ofThe Future of Retirement The power of
planning global report.
Conclusion