Bermuda residents are being urged to consider how they will fund their retirement as new data shows increasing strain on people’s retirement finances around the world.

The long-term impact of the global economic downturn that hit in 2008 caused millions of people around the world to raid their retirement funds and amass debt in order to survive the hard times.

An HSBC survey indicates that globally around one in five people stopped or reduced their retirement savings during the downturn — whether through investments, cash deposits, annuities or pension schemes.

“This means that millions of people could enter retirement with savings diminished by a quarter or more after getting into debt or severe financial difficulty,” the bank said in a statement.

It noted that in Bermuda the ageing population lends itself naturally to sharing some of the same concerns that are being expressed globally through the report.

Taking into account that people are living longer than before, Renee Bullock-Cann, who is head of retail banking at HSBC Bermuda, said: “For many of us, the thought of having a discussion about retirement in general can feel either a little premature or for some, simply overwhelming.

“Depending on each individual’s personal circumstances, more often than not, there are other key life events such as paying for your child’s university tuition, keeping on top of mortgage payments, etc, that can take precedence.

“However, if we look to recent economic history and the impact this has had both globally and locally on our lives, we can no longer rely solely on our pensions to guarantee the retirement we want.

“There really is no time like the present for each of us to take a good look at how prepared we are for this important life stage.”

Ms Bullock-Cann is urging residents to consider four actions to improve financial well-being in retirement.

The first is to start saving early and make retirement plans as soon as you can.

Secondly, people should start thinking about what kind of lifestyle they want when they retire and work out how much retirement money they will need.

The third action is to refill the retirement savings pot if it was depleted by withdrawals or reduced saving during the downturn.

Fourthly, be prepared for the unexpected. “Unforeseen life events can damage your retirement savings. No one can see into the future, but do consider what could happen and how this will impact your financial planning,” the bank warned.

Commenting on the findings of the HSBC survey of 16,000 people around the world, HSBC’s Michael Schweitzer, head of sales and distribution, group wealth management, said: “While the future health of the global economy still hangs in the balance, it seems that an as-yet unrealised impact of the past decade is still to come.

“It is worrying for the many people who have just about weathered the storm, to think that things could actually get worse — but our research shows that the cumulative effect of lost retirement savings and increased debt is going to be felt by people for many decades to come.

“There is no quick-fix solution — but the key for workers everywhere is to focus on finding the means to save a little for their future, now.

“We know the cost of living is up and budgets are increasingly stretched — but even the smallest amounts saved can help reduce the long-term effect of these challenging times, and make the likelihood of a comfortable retirement all the more real.”

The latest Future of Retirement global report ‘A Balancing Act’ can be found online at: http://www.hsbc.com/about-hsbc/structure-and-network/retail-banking-and-wealth-management/retirement