How habit can help you save for a long retirement

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What’s the secret to a comfortable retirement and how do we get there?

New research from the Transamerica Center for Retirement Studies and Argeon Center for Longevity and Retirement has revealed the retirement preparedness of 15 countries across Europe, the Americas, Asia, and Australia.

“People are living longer than ever, and are inspiring changes in how we think about working, active living and healthy aging,” said Catherine Collinson, president of TCRS.

The report found that the average retirement is expected to last 20 years, with 39% of people globally having no retirement strategy at all and only 13% with a written retirement strategy.


The results from the Aegon Retirement Readiness Survey 2015 show that while readiness as increased, there are some simple ways we can boost our retirement savings beyond getting a pay rise.

One of these is being a “habitual saver” — or saving on a regular basis. Just 39% of employees globally identify themselves as “habitual savers”.

“While it may seem obvious that people who save consistently over time will likely have a larger nest egg when they retire, it is noteworthy that the retirement preparations of habitual savers transcend simply setting funds aside and include higher degrees of planning and confidence,” said Collinson.


Being a habitual saver increases your chances of financial resilience — nearly half of these savers have a back-up to help deal with unforeseen events. This compares with just 11% among non-savers.

It also makes you take a more balanced approach when you’re planning your retirement income. Instead of expecting most of their retirement savings to come from the government, habitual savers have it evenly spread out across personal savings, investments and workplace retirement benefits.

Ultimately, it is important to understand that income is not a major obstacle to saving on retirement.

“Habitual savers are not necessarily limited to the affluent,” said Collinson. “For those who are aspiring to save, they may find that getting into the habit of saving can be within reach.”

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