And some earn less than they expected.
According to HSBC’s Future of Retirement study: Life after work?, a third of retirees (31%) experience a fall in income once they enter retirement with 15% seeing it decline by more than half compared to their pre-retirement income.
A quarter of retirees (24%) found themselves earning less during retirement than they had anticipated.
This shortfall appears more acute among female retirees, with 54% getting a lower income compared to 15% male retirees.
Impact of the global economic crisis (57%), insufficient planning (23%), and lower inheritances than expected (19%) are the main reasons cited by respondents for retirement income falling below their expectations.
While retirement income has declined for many, it does not necessarily mean a corresponding decrease in expenditure. Two-thirds of retirees (66%) say their spending is greater than or the same as before retirement.
Where expenditure does fall, it does not do so by much. Only a small minority (3%) have reduced their outgoings by more than half.
Supporting one’s children financially even while in retirement is becoming common. Retirees in Singapore continue to provide for their children where 27% are supporting their children financially while 38% of working people expect to do so in the future. On the other hand, the research also shows that over a third of retirees (36%) are not financing anyone during retirement and 34% of working people do not expect they have to do so when they retire.
Hmm.. Retirement doesn't mean spending less.