A study of retirement security in 150 nations ranked the U.S. 19th behind Scandinavia and much of Northern Europe. Learn more.
A comparative study of retirement security in a 150 nations ranked the United States 19th, behind Scandinavia, Canada, Japan and much of Northern and Eastern Europe.
The new annual index, released yesterday by the international financial services firm Natixis Global Asset Management analyzes World Bank, United Nations and other data on the health, material well-being, financial circumstances and overall quality of life of retirees around the world. The findings suggest Americans will need to assume a greater responsibility for their retirement security as the population ages and strains government support programs.
“The message is clear: You will be called on to finance more of your retirement,” John Hailer, NGAM president, said in a statement. “In the U.S., we encourage workers to plan, save and invest, and promote policies that help them meet their future needs.”
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U.S. retirees are particularly burdened by health care costs, according the report, in contrast to nations with “robust health care and retiree social programs.” Contributing to the retirement risks facing Americans are rising life-expectancy rates and declining birth rates. By 2050 the ratio of workers-to- retirees in America is expected to drop below three-to-one.
The recession has also reduced the ability of Americans to save for retirement. The share of working Americans ages 30 and older who risk running out of money in retirement has increased from 38 percent in 2011 to more than 53 percent today, according to NGAM.
Investors greatest regrets and fears center around retirement issues.
“The bottom line is that U.S. workers, like many of their counterparts across the globe, have to step up even more and take charge of their retirement futures,” Tracey Flaherty, senior vice president for government relations, said in a statement.
Here’s a breakdown of how the U.S. ranked across the four measure of retirement security:
· Health – 23rd: The U.S lags other nations in access to care and life expectancy.
· Material Well-being – 38th: A relatively high level of income inequality threatens the retirement security of many Americans.
· Finance – 28th: The U.S. ranked is lower on concerns over the long-term solvency of Social Security and other programs.
· Quality of life – 26th: Americans express relatively high levels of happiness, but the nation falls in the rankings due to environmental measures affecting retirement security .