A Guardian report by Philip Inman, reporting research by HSBC into retirement trends, says that 20% of the world's workers have raided their savings in the last year to reduce their debts and 13% have stopped saving altogether in the downturn . Almost 90% say they are unprepared for retirement and 75% say they don't know what income they can expect when they stop working. Reluctance to save in the downturn will add to the 'unpreparedness gap' evident in every major economy and the bank's chairman, Stephen Green, says 'A perfect storm is confronting pensions planning, created by an ageing population, falling pension fund values, a drop in state and employer contributions and an economic downturn which is forcing people to make financial choices.' He suggests governments support education schemes and financial advice centres to help people make informed choices about their retirement plans.
“What about endogeneity?”
5 hours ago