The future of retirement (I)

The Future of Retirement 2007 report, the third annual one, is sponsored by the UK-based banking group HSBC Holdings and prepared by the Oxford Institute of Ageing, which is part of Oxford University. It explores “what the world wants for later life,” that is, people’s expectations of and experiences with retirement, based on surveys with 21,000 people, aged 40 to 79 in 21 countries, both developed and developing, including Turkey. This study is supposed to be the largest of its kind in terms of its coverage. In this column, I will discuss the major findings of the report. In my next column, I will focus on its results on Turkey.  

Since its first issuance in 2005, the Future of Retirement report has broadened its coverage of both the sets of issues relating to retirement and the people surveyed in different countries across the globe. Turkey has been included in the report since 2006. The major, and on the whole surprisingly upbeat and uplifting, findings of the Future of Retirement 2007 report, around the themes of health, contribution and families, can be summarized as follows: (1) Contrary to the prevailing pessimistic view, most retirees, but primarily those in developed countries, are satisfied with the quality of their lives. This finding refutes the “myth” about the present and future problems that are supposed to be facing retirees in their 60s and 70s, springing largely from retirement funding controversies as people live longer and population growth slows down. The report concludes that “…people the world over are now able to live the lives at the age of 70 that previous generations would have enjoyed at 50.” Most people in their 60s and 70s claim to be in good health and in control of their lives. Especially in developed countries, retirees experience a boost in their health and quality of life, combined with feelings of control and independence, called the “Retirement Bonus.”

(2) They are an asset to, not a burden on their societies, contributing significantly to their economies through tax revenues and unpaid volunteer work, but most importantly through family care and support, both personal and financial. In other words, instead of being only on the receiving end, they give generously to their families and societies. In fact, the report finds that the care and support they give to their families exceed what they receive.

(3) Significant percentages of people in their 60s and 70s -- in both developed and developing countries -- continue to do paid work, as the trend toward seeking early retirement declines. Many people who retired early have regretted it for various reasons. Newer generations are becoming increasingly doubtful about the net benefits of early retirement.

(4) In most of the countries surveyed, retirees miss either work or money less than pre-retirees expect to. However, the majority of pre-retirees do not expect their standard of living to fall when they retire.

(5) Contrary to another pessimistic view that families are in decline all over the world, the report concludes that families, although getting smaller, are thriving. Most people who were surveyed, an overwhelming two-thirds of them, define themselves in terms their families. Older people consider themselves the cement of their families, increasing in number, consisting of four or five generations.