London: Half of Britons expect to be poorer than their parents when they retire due to a chronic lack of saving, according to a report published yesterday.
Millions are earning too little, spending too much, failing to save and building up crippling debts, the report said.
They have been nicknamed "the Ostrich Generation" — they know they will live longer than previous generations and that state and company pensions will not be so generous but they are burying their heads in the sand rather than planning for the future.
The report, from the bank HSBC, warned: "A generation of Britons are facing a cash-strapped retirement as people ignore, or refuse to respond, to the changing nature of pension provision."
HSBC questioned 1,000 working age Britons and found that 49 per cent expect to be worse off in retirement than their parents. Only 27 per cent expect to be better off. Seventeen per cent do not have a clue how they will pay for their retirement, while 21 per cent plan to rely on the state pension.
But the state pension will not pay for a comfortable old age. It is worth just over £100 (Dh595) a week, if you are entitled to the full amount. The report found that 62 per cent are "slightly" or "very" worried about how they will cope financially when they retire.
Many will be forced to keep on working, particularly with the state pension age being increased to 66 by 2020 for both men and women.
Official figures show the number of people aged 65 and above who have a job is rocketing. Over the last year, it has increased by 105,000.
