Governments Seen Failing to Support People in Retirement
People in many countries no longer trust the government to support them in old age, with those surveyed in the UK showing the highest declining confidence in such government support, according to new research carried out by Oxford University. In the UK, twice as many feel the government should support them in old age, compared with the number of respondents who believed that the government would.
The research report Investing in Later Life, surveyed 21,000 people in 21 countries on how people are preparing for retirement. It is the fourth such annual report undertaken by Oxford University’s Institute of Ageing, funded by HSBC Insurance.
Globally, two-thirds of those surveyed said governments should play a significant role in supporting them in old age. However, three-quarters said they feel this will not happen, with those coming up to retirement more disillusioned than the generation who have already retired. Those who have already retired placed the government first as the main contributor to security in old age. In contrast, those coming up to retirement said they felt they would have to rely on their own resources, and would be prepared to work longer to ensure a secure retirement.
Globally, half of those surveyed said they would prefer enforced private savings, with an increase in retirement age as the second choice. In the UK however, being able to work longer, beyond the usual retirement age of 65, was the most popular option among those surveyed.
The report shows larger proportions of higher income groups, and men in particular, tend to have more than one main source of retirement income, but lower income groups and women tend to be reliant on just one source of retirement income. The report says those dependent on single source retirement incomes, are more likely to fall into what the report calls a ‘vulnerability trap’.
The global survey suggests that a relatively small proportion is prepared for retirement, while a larger proportion is completely unprotected.
The survey also shows that there is a substantial middle group that feels it is protected, but in fact faces the prospect of falling into a “vulnerability gap”, that is, with limited amounts of support available from the government or their own families.
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