The report, “The Future of Retirement: The power of planning,” found that four in 10 (38%) survey respondents said they would prefer to spend their time seeking professional financial advice on their immediate, rather than future, needs. The research shows that most people aren’t interested in extended meetings with their financial adviser: only around one in 10 (13%) prefer longer meetings and 17% would like more than one appointment to review their goals and financial plan.
Younger demographics are more likely to cite a lack of time as a reason for not having a financial plan, with 12% of those in their 30s saying they don’t have time to seek advice.
HSBC said the results prove a ‘planning premium’; Americans with a financial plan have 2.2 times more money saved for retirement than the average U.S. employee. Americans with financial plans have accumulated on average $127,000 in their savings and investments for retirement, compared to the average U.S. household with $56,000. Non-planners have around $23,000.
In addition to the financial premium, Americans with a financial plan have an “emotional premium” as well, says HSBC; they are more likely to associate retirement with freedom, excitement, and hope. Almost half (44%) of non-planners link retirement to financial hardship, while this is a concern for less than quarter of planners (19%).
For further information on this and previous reports, visit www.hsbc.com/futureofretirement.