UK workers are the worst at saving for their retirement compared to those in 15 other countries across the world, according to HSBC.

Its research, The Future of Retirement: A new reality, found that the average retirement in the UK is expected to last 19 years but that the savings will run out just seven years into retirement.

This means that savings will only cover 37% of a worker’s retirement income and represents an overall 12-year shortfall in retirement savings.

However, the average retirement savings worldwide will dry up just over half way into retirement, according to the international study of 15,000 respondents in 15 countries across the world.

In addition, 56% of the global working population is not preparing adequately for their retirement but this rises to 66% in the UK. Of these, 19% of people across the globe are not preparing for retirement at all but this increases to 34% in the UK.

Financial concerns represented the greatest fear about living in retirement, with 63% in the UK saying they are concerned about financial hardship, compared to 57% globally. In addition 31% are worried that they will have to work longer than they want to.

The shortfall could mean workers enter “a period of significantly reduced living standards”, the bank warned.

It added that the situation is likely to worsen as life expectancy continues to rise around the world and if failures to “make up the shortfall” continue.

HSBC UK head of wealth development Christine Foyster said: “The concept of retirement is evolving all the time and we know many people aren’t prepared. But now we know by just how much.

“People are living longer, through tougher economic times, but their expectations about their standard of living in retirement remain unchanged. They are putting off the inevitable, which is the reality of significant cuts to their living standards in their twilight years, after their savings run out.”

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