HSBC pensions to become more flexible

HSBC pensions will have to become more flexible in order to reflect the changing needs and expectations of people in modern society, a new study by the bank has suggested.

"The Future of Retirement", a comprehensive study on global attitudes to ageing and retirement, shows that for many people today traditional retirement is no longer a reality.

The changes in attitude are thought to be due in part to the ageing of the "baby boomer" generation, declining fertility rates and increasing lifespans, all of which are changing the way in which people see pensions.

In particular, the study found that more people thought the retirement age should be raised to cope with increasing pressure (45 per cent), with 26 per cent saying they would prefer higher taxes and only 15 per cent in favour of reducing pension benefits.

"This new way of thinking highlighted by the research should change the way governments, companies and financial institutions deal with ageing and retirement," said Dr Ken Dychtwald, president of US-based consultancy practice Age Wave, which managed the research for HSBC.

Sir John Bond, group chairman of HSBC Holdings, said that the changes posed "real challenges" to the way in which HSBC pensions would operate in the future.

He concluded: "We remain committed to exploring this area more fully, using our findings to guide our own products and services to better fit the increasingly complex, increasingly flexible demands of consumers as well as adding a new dimension to the global debate."