Global Investor Study 2018

Are you saving enough for a comfortable retirement?

It goes without saying that people would like to retire in comfort, and many strive to save and invest effectively during their working life to ensure a certain lifestyle for their golden years. How successful are people globally at achieving this?

We spoke to over 22,000 people from 30 countries to explore financial expectations for retirement and how these compare to the experiences of people who have already retired.

 

Income expectations for those approaching retirement exceed what retirees receive

0
%

of current annual income is how much people aged 55+ think they will need in order to live comfortably once they retire

0
%

of final salary is on average how much retirees are actually receiving

What people aged 55+ expect they will need versus what is actually received in retirement

Non-Retired

Percentage of current income they think they will need per year to live comfortably in retirement

Retired

Percentage of final salary being received per year in retirement

1%-20%

21%-40%

41%-60%

61%-80%

81%-100%

Over 100%

Don't know

The cost of living in retirement takes up more income than anticipated, leaving less than expected for fun and exploration:

Retired:

Estimated actual spending of annual retirement income

Non-Retired:

Estimated expected spending of annual income during retirement

Living Expenses

Travel

Healthcare costs (their own or someone else's)

Hobbies

Buying a property as an investment

Financial support for relatives e.g. education costs

Buying a second home

Other

Encouragingly, more than 4 in 5 retirees consider their retirement income adequate, but 59% would like to increase their income

Retiree opinions on whether their retirement income is sufficient

Yes, it is sufficient to live comfortably

Yes, but I could use a little more income

No, I do not have enough income to live comfortably

0
%

consider their retirement income sufficient

Those describing their investment knowledge as “advanced/expert” are more likely to be living comfortably on their retirement income than those who feel they have less knowledge

Yes, it is sufficient to live comfortably

Yes, but I could use a little more income

No, I do not have enough income to live comfortably

0
%

consider their retirement income sufficient

Yes, it is sufficient to live comfortably

Yes, but I could use a little more income

No, I do not have enough income to live comfortably

79
%

consider their retirement income sufficient

Yes, it is sufficient to live comfortably

Yes, but I could use a little more income

No, I do not have enough income to live comfortably

91
%

consider their retirement income sufficient

People are, however, investing more at retirement than expected, indicating an understanding of the role investing can play in growing retirement income:

Proportion of total investments and savings for retirement allocated to investments on entering retirement

0%
0%

Retired: actual

Non-Retired: expected

People yet to retire feel they need to be saving more of their annual income than they currently are, in order to live comfortably in retirement

Currently saving on average

0
%

Feel the need to save on average

0
%

But those who describe themselves as having an “advanced/expert” level of investment knowledge have a smaller gap between what they save and what they think they should be saving

Currently saving

Feel they need to be saving to live comfortably

Beginner / Rudimentary

11
%
0
%

Intermediate

12
%
0
%

Expert / Advanced

13
%
0
%

When it comes to making investment decisions for retirement, research and advice is key

People's top three important sources of information about these investments:

1

Own research from
third party sources

2

Financial
Adviser

3

Pension provider /
company

Current levels of savings and investments by those yet to retire may not prove enough to cater for the plans and expectations people have for this stage of their life.

Investing in retirement can help people bolster their income and achieve the lifestyle they want and deserve.

Schroders commissioned Research Plus Ltd to conduct, between 20th March and 23rd April 2018, an independent online study of over 22,000 people in 30 countries around the world, including Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, the Netherlands, Spain, UAE, the UK and the US. This research defines “people” as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years.

Watch/Listen

Watch Schroders’ Global Head of Retirement, Lesley-Ann Morgan speak on BBC Business Live about the findings of the 2018 Global Investor Study.

Contact Schroders

Schroders is a world-class asset manager operating from 29 countries across Europe, the Americas, Asia, the Middle East and Africa.


Worldwide locations

For any further questions, please use our online contact form. 

Contact form

Our sales team is happy to talk to you about any investment options or opportunities you might be interested in.

Your contacts