London - Global banking giant HSBC warned of a "major East-West divide" on pensions Thursday, as workers in Europe and combating U.S. to correspond to their Asian counterparts adequately for retirement savings.
The London-based Bank has revealed that the conclusions in a report entitled 'The future of retirement' after 17,000 people in 17 countries on attitudes to pensions survey.
HSBC said that the report highlighted "the emergence of the main East-West divide in the perception of retirement".
He added: "the impact of the economic slowdown had a measured impact, particularly in the developed countries of Europe and North America, where many people now expect to be worse than that of their parents when they enter retirement."
"However, this view is in no way universal with households in many parts of the world through the global downturn with their aspirations for a prosperous retirement largely intact."
"This is particularly true in emerging markets like China and the India economic powers," said HSBC.
Director of investments, pensions and savings bank, David Wells, said that "unless that Westerners take a leaf from the book of their Asian peers and begin to be responsible for their own future, unfortunately much will find that their fears of financial difficulties at the end of life are carries out."
HSBC said half of those questioned in its global survey is not a financial plan while 41 percent felt prepared for retirement.
The survey also showed that 32% of respondents were expected to face financial difficulties when they retire - but this figure fell to 17% in China.
The Bank said Chinese households saved the equivalent of 38% of the gross domestic product (GDP), while the figure is 35% in India. As compared to only 3.9% in the United States.
Some nations have implemented mandatory plans to change behaviour, but HSBC stressed education was necessary.
He said "the financial services industry clearly has a role to play in shaking the non-planificateurs in action". "The role of the brand and marketing must be accompanied by a mixture of other interventions."
The Bank appealed for "greater funding financial education creating basic financial education and awareness levels."
In addition, he suggested that Governments could grant tax relief on contributions of pension for workers.
"The key in this report message is that those who take the time to put in place a financial plan are much more likely to benefit from a positive retirement," concluded the HSBC.
"As our results show, financial planning has the power to transform our well-being in retirement."
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