The United States could learn utterly a bit from other countries around a universe when it comes to retirement security, according to a new report.
The annual Global Retirement Index, started by Paris-based investment bank Natixis Investment Managers, analyzes 4 pivotal indexes: finances in retirement, including taxes and a old-age dependency ratio; health, such as life outlook and expenses; “material good being,” that is income equivalence and unemployment; and peculiarity of life, including complacency and H2O quality. Iceland surfaced a list this year, followed by Switzerland and Norway.
See: 15 signs that a smashing retirement lies forward
The other countries in a tip 10 were Ireland, New Zealand, Sweden, Denmark, Canada, Australia and Luxembourg. The United States was ranked 18th.
The U.S.’s top measure was in health, during 86%, followed by peculiarity of life, that was 76%. The nation scored a 71% in finances in retirement, though usually 58% in element good being. Although a U.S. has a low stagnation rate, a nation suffers from a vast income inequality opening and supervision indebtedness, that forsaken a score, pronounced Ed Farrington, executive clamp boss during Natixis Investment Managers. The U.S. did arrange 10th in a financial subindex
Natixis Investment Managers
Still, countries opposite a creation have many of a same concerns about retirement confidence as a U.S. Australia has a employer-sponsored devise in place, that mandates employers minister to employees’ retirement accounts with a company’s possess assets, though Australians still need to save on their possess to safeguard they have adequate income in retirement. The U.K. is identical — it has a national module where employers contingency automatically enroll workers in a retirement plan, though a grant rate might not be high adequate for destiny retirees to live off.
Read: Here’s how other countries financially support their retirees
The Social Security complement in a U.S. is stable, though usually for now, and requires courtesy from process makers. The trust supports that support a complement are approaching to run out of income in a subsequent 15 years, in that case, all retirees would accept usually about 80% of a advantages they’re owed. Old age grant problems exist in other tools of a universe as well. Brazil has had a distant too inexhaustible system, and is in a midst of revamping a grant structure. The changes will need Brazilians to work longer, though it will keep a supervision grant afloat. China’s chronicle of Social Security is also teetering, partially since there are not adequate immature workers to support retirees.
Comparing countries from opposite regions isn’t always fair, generally when they’re not a same distance or have a same healthy resources to monetize, Farrington said. But there are lessons a U.S. can reap from others, including a Nordic countries’ peculiarity of life and health care.
Alessandra Malito is a personal financial contributor formed in New York. You can follow her on Twitter @malito_ali.
We Want to
Hear from You
Join a conversation
