With populations around the world ageing, individuals need to do considerably more to prepare financially for retirement.

This is the conclusion reached by a global study by HSBC, which has found 19 per cent of respondents "don't know" how they are planning to pay for their old age.

According to The Future of Retirement report, a further 16 per cent of people expect to rely on the state pension when they cease working.

Governments are looking at ways to reduce the growing burden of pensions expenditure, yet 38 per cent of respondents in France do not know how they will fund their retirement and 40 per cent of people in the UK failing to plan.

Malaysia (84 per cent), China (76 per cent) and India (76 per cent) had the highest proportions of those preparing for old age.

"Against a backdrop of an ageing world population and declining state and company pensions, people need to stand up and take responsibility for securing their own future," HSBC head of investments, pensions and savings David Wells said.

The Organisation for Economic Co-operation and Development recently reported a global financial recovery is taking place, but the pace of growth varies widely between nations.

Posted by Lee Thrace