The UK is the worst country in the world at saving for retirement, data from a new report into global savings shows.
In the HSBC report, “The Future of Retirement: A New Reality”, the average Briton is found to spend 19 years in retirement but with savings that will run out after just seven.
It means the average Briton’s savings only covers 37 per cent of their retirement income with the rest being covered by other income such as the state or employment.
In a study that spanned 15,000 people across 15 countries Britain had the lowest level of savings for retirement.
Malaysia was the best nation analysed with its citizens saving 71 per cent of their needed retirement income.
On average globally people are storing up enough to pay for 56 per cent of their retirement which is an average of 18 years, leaving an eight year shortfall.
In the report, HSBC group head of wealth management Simon Williams says: “There are, of course, many obstacles to saving, including the lack of a regular savings habit and the financial impact of unexpected life events.
“Unfortunately, the impact of saving too little or too late will only become clear in later years, when people find they are retiring without the necessary income to support an active and fulfilling retirement.”