65% intend to save more for their retirement and, in fact, 81% have already started
As a result of the pandemic, Spaniards are more savers and far-sighted in the face of their retirement . One more example that Covid-19 has influenced society by changing its habits. Spaniards acknowledge that the pandemic has also disrupted their plans regarding the retirement age.
Specifically, 65% of those surveyed in Spain affirm that they intend to save more for their retirement and, in fact, 81% have already started to do so . This is confirmed by the Schroders Global Investor Study, conducted with 23,000 investors from 32 locations around the world. By age group, the youngest have taken advantage of these months to allocate a greater amount of money to their retirement (92% of ‘generation z’ and 88% of ‘millennials’).
“The Spanish recognize that the pandemic has also disrupted their plans regarding the retirement age.” Thus, 36% plan to retire later , while 34% still trust that they will be able to retire at the same age as planned.
Regarding the financing of retirement, Spaniards comment that, on average, this year they have allocated 11.5% of their income to retirement. In fact, they are spending more annually than they consider necessary to live comfortably once they have retired (11.1%). This is in line with the European average (11.2%), but below the world average (12.8%).
On the other hand, the percentage of Spaniards who believe that the public pension will not be enough to maintain their standard of living when they retire has dropped from 54% last year to 44% in 2021. However, the concern continues to become more evident in the younger generations: 72% of ‘generation z’ and 49% of ‘millennials’ do not trust that the public pension is enough to cover their expenses when they retire. Perhaps for this reason they are allocating a higher percentage of their income to retirement: ‘generation z’ 13.2% and ‘millennials’ 12% compared to 9.8% of ‘generation x’ and 11% of the ‘baby boomers’.
The study highlights that 55% of Spanish respondents intend to live on the State pension when they retire, although 58% find it more feasible to meet their expenses with their private pension plan and 49% with their savings and investments.
“The pandemic has brought many uncertainties, but it has also sparked an interesting reflection on long-term savings . It is encouraging that Spaniards are willing to save more and at earlier ages for their retirement. The fact that they are allocating a greater amount of what they considered sufficient to live comfortably once they retire shows a clear interest and commitment to the future, no matter how complex the scenario may be, “says the general director of Schroders for Spain and Portugal, Carla Bergareche.