A total of three quarters of people - 75 per cent - aged 45 plus would like to retire in the next five years but almost half - 45 per cent - cannot do this because their circumstances will not allow it, according to HSBC’s latest report entitled ‘The Future of Retirement’.
The report, which represents the views of more than 18,000 people in 17 countries, showed that nearly three-quarters - 74 per cent - haven’t saved enough money and 18 per cent say they have too much debt.
Additionally, 19 per cent claim they have dependents that rely on their income.
Over the last year the number of people who fear they may never be able to fully retire has also increased.
A total of 12 per cent are worried they will not be able to afford to retire and will have to continue working, up 2 per cent from 2015.
HSBC’s report revealed that of those who have retired, 39 per cent of people say their standard of living has increased despite no longer receiving a monthly salary.
Forty-one per cent said that their social life improved, compared to 8 per cent who claimed it had gotten worse.
HSBC identified four practical steps to help prepare for retirement.
These were to start saving earlier; to plan for a longer retirement; to aim for a healthy new retirement and consider how your healthcare needs may change in your retirement.
Caroline Connellan, head of UK Wealth at HSBC, said: “For many people concerns about money are preventing them from retiring when they want to.
“Modern financial pressures and the changes in pension freedoms make the need for sound financial planning more important than ever.
“Even small amounts saved today can make a difference.”
Nigel Waterson, chairman of the Equity Release Council, said: “A comfortable retirement takes decades of hard work to realise. Increasingly, it also hinges on a broader approach to later life financial planning than was the case for past generations.
“For those who find they are asset rich but cash poor as they approach later life, the mantra of ‘save more now’ can only stretch so far.”