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Press release from CNW Group

Men more likely to dip into retirement savings during tough times

Monday, July 15, 2013

Men more likely to dip into retirement savings during tough times

08:00 EDT Monday, July 15, 2013

HSBC reveals gender gap in how people deal with financial hardship

VANCOUVER, July 15, 2013 /CNW/ - Over a quarter of men (27%) in Canada would consider dipping into their retirement funds to cope with tough times as a result of unforeseen life events, compared to just under a quarter of women (23%), according toHSBC's study, The Future of Retirement: A new reality.

The survey of over 15,000 consumers in 15 markets found a significant appetite among savers to dip into retirement savings when faced with financial hardship.  However, it also found that just four in ten Canadians (40%) are regular savers, leaving many non-savers with little to no option but to resort to more extreme measures.

Moving to a smaller house was among the alternative coping mechanisms explored by the report, revealing, in this case, similarity between genders.  The study found that nearly the same percentages of men (19%) and women (21%) would consider downsizing to deal with financial difficulty.

The study showed the financial strain that home ownership is placing on today's savers, with over one quarter (27%) saying that buying a home or paying a mortgage has had a significant impact on their ability to save for retirement. An equal amount (27%) said that becoming unemployed or getting into debt or severe financial hardship would present the same savings challenge.

Bricks and mortar is just one of the sacrifices people would consider making if their financial situation demanded it; 33% of respondents would tap into other savings and investments and 17% would sell their valuables. However, others would consider borrowing to avoid parting with their assets; 18% would borrow money and 14% would ask friends and family for help.

Betty Miao, Executive Vice President, Retail Banking and Wealth Management, HSBC Bank Canada, said: "Homes can be an emotive investment and people's unwillingness to unlock their equity during times of hardship is understandable. But unless people plan ahead, they may be faced with no alternative."

"People need to take a more robust approach when it comes to financial planning. Regular saving will put them in a stronger position to cope with the unexpected, and help in maintaining living standards later in life."

To download a copy ofThe Future of Retirement: A new reality go to www.hsbc.com/retirement

Notes to editors

HSBC's The Future of Retirement programme is a world-leading independent study into global retirement trends. It provides authoritative insights into the key issues associated with ageing populations and increasing life expectancy around the world. The latest global report, A new reality, is the eighth in the series and is based on an online survey of 15,866 people in 15 countries. Since The Future of Retirement programme began in 2005, more than 125,000 people worldwide have been surveyed.

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 6,600 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and North Africa. HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading international bank in Canada.  With assets of US$2,681bn at 31 March 2013, the HSBC Group is one of the world's largest banking and financial services organisations.

For more information about The Future of Retirement, and to view all previous global and country reports, visit www.hsbc.com/retirement.

Cicero Consulting is a leading consultancy firm serving the banking, insurance and asset management sector, Cicero specialises in public policy consulting as well as global thought leadership and independent market research. Cicero was established in 2001 and now operates from offices in London, Brussels, Washington and Singapore.

As a market leader in pensions and retirement research, Cicero designed and analysed the research and wrote this report, with Mark Twigg as author and Paul Middleton as research director.


 

SOURCE: HSBC Bank Canada

For further information:

Media enquiries:
Fabrice de Dongo
Senior Media Relations Manager
HSBC Bank Canada
(416) 868-8282

Aurora Bonin
Senior Media Relations Manager
HSBC Bank Canada
(604) 641-1905

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