Future security at risk as retirement saving slumps in 2023, reveals survey

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financial journey. Commencing the contemplation of how you’ll sustain yourself during your retirement is a task that can be undertaken at any age — whether it’s early or later in life. Initiating the planning process sooner enhances the array of choices available to you and facilitates the achievement of your retirement goals.

The financial requirements for your retirement hinge on factors such as your chosen lifestyle, anticipated lifespan, and the local cost of living. A general guideline is to target saving approximately 10-15 per cent of your annual income. However, due to escalating expenses, many households may deprioritize retirement savings.

This trend is underscored by a recent BankBazaar survey, revealing a significant decline in retirement planning. The percentage of savings allocated to retirement has contracted from 45 per cent in 2022 to 38 per cent in 2023. Numerous women encounter difficulties in saving for retirement, influenced by various factors.

There are several reasons why women may redirect retirement savings toward other financial goals. The majority of women have shifted their focus from retirement to other savings objectives, with only 34.3 per cent currently saving and investing for retirement, down from 48.45 per cent last year. In contrast, the percentage remains relatively steady for men, with 40.1 per cent continuing to prioritize retirement planning compared to 41.86 per cent the previous year.

The data for this year reveals a changing pattern in women's engagement with retirement planning. In 2023, only 57 per cent of women are actively building a retirement fund, marking an 11 per cent decrease from 68 per cent in 2022. Conversely, for men, the figure experienced a slight increase from