UK - A generation of Brits has its head in the sand over retirement planning and faces a cash-strapped retirement as they ignore or refuse to respond to the changing nature of pension provision in the UK, according to a report from HSBC.

The UK report, called 'The Future of Retirement: The power of planning', finds that members of the UK's "ostrich generation" know they will live longer than previous generations and understand that traditional state and company pensions will no longer be so generous.

HSBC questioned 1,000 working-age Britons for the report and found that half - 49% - expect to be worse off in retirement than their parents, while only 27% expect to be better off.

However, despite fears they are under-prepared - and with expectations to ease into semi-retirement in their mid-50s before stopping work at 62 - the majority are not making any plans about how they will fund their retirement.

Nearly one in five - 17% - of those questioned do not know what their main source of retirement income will be, with a further 21% saying they will rely on the state pension.

As a whole, 68% of respondents are worried about coping financially, and 48% fear they are not saving enough for their retirement, rising to 57% among women in their 30s and 40s.

But despite all this, slightly fewer than four in 10 Britons (39%) have put a financial plan in place to provide for their futures, while 68% are worried they are not financially prepared.

David Wells, head of investments, pensions and savings at HSBC Bank, said: "The emergence of this ostrich generation is a real concern. Britons know that they need to plan and save more for their retirement, yet are not turning this knowledge into action.

"People need to look around and take proper stock of what they need to do - they can no longer totally rely on the state or their employer to provide for them. In the 21st century it is all about taking individual responsibility.

"There is very good news for those who do plan - regardless of what they earn or how much or little they can afford. The very act of starting a plan and putting it into action today will reap significant financial and emotional rewards - a good plan now is far better than a perfect plan tomorrow."

The bank said it found firm evidence in the survey of a planning premium among respondents.

Those Britons with plans have accumulated on average £123,000 in their savings and investments for retirement, compared with the average UK household of £53,000. Non-planners will have around £28,000.

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