Retirement seems less straightforward, at least in the United States.
Overall, 59% of Americans said they accept they will have to work longer, while 36% now think they won’t have enough money to retire, according to the latest data from the Natixis Global Retirement Index.
The report found that more than that – about 41% – said their ability to be financially secure after retirement would “take a miracle”.
The Covid pandemic has taken a heavy toll on Americans’ sentiments about their retirement insurance.
A major concern is how large increases in government spending to get the economy back on track will reduce Social Security benefits.
The Treasury has already said that the Social Security Fund that most Americans rely on for retirement is running out sooner than expected.
The outlook, exacerbated by the pandemic, threatens to cut pensions and raise health care costs for older Americans.
At the same time, the pandemic has put savers back into retirement, especially young people.
The Natixis report found that about 13% of Gen Y reduced their retirement contributions and took 11% of their retirement accounts to make ends meet.
Under Generation X, 15% cut their retirement contributions and withdraw 9%.
Low interest rates and rising inflation pose additional problems for long-term financial security, according to Natixis, which included 750 individual investors.
“People are really aware of the critical risks they face, all of which have been exacerbated by the pandemic,” said Dave Goodsell. CEO, Van Natixis Center for Investor Insights.
Natixis’ annual ranking compares countries based on the financial resources, material well-being, health, and quality of life they provide after retirement.
This year, the United States slipped one place to 17 out of 44 countries.
Compared to 2020, the US scored lower in three of four categories, including health, quality of life and finances, mainly due to shorter life expectancy, lower rates of general happiness and the environment, as well as higher government debt. .
Iceland takes first place in the general rankings for the third year in a row. Switzerland, Norway, Ireland, the Netherlands, New Zealand and Australia all slipped slightly in their retirement readiness but still held the top spots, with Germany, Denmark and Canada in the top ten.
With more retirees around the world responsible for their financial security, Goodsell said, the countries that ranked best with lower income inequality, available health care and strong social programs.
The Natixis index includes the advanced economies of the International Monetary Fund, members of the Organization for Economic Co-operation and Development and the BRIC countries (Brazil, Russia, India and China).
Countries are scored in each category and the combined scores determine the final overall ranking of the 44 countries listed.
