Retirement looks less and less like a fact, at least in the United States.
Overall, 59% of Americans said they agree that they will have to continue working longer, while 36% believe they will never have enough money to retire, according to the latest data from the global index of Natixis retirement.
What’s more, about 41% said their ability to be financially secure in retirement “will be a miracle,” the report found.
The Covid pandemic has greatly affected Americans ’feelings about their own retirement security.
Among the main concerns are how significant increases in public spending to recover the economy will lead to a decrease in Social Security benefits.
The Treasury Department has already said the Social Security trust fund that most Americans trust to retire will run out of money ahead of schedule.
The outlook, exacerbated by the pandemic, also threatens to reduce retirement payments and raise health care costs for older Americans.
At the same time, the pandemic pushed back retirement savings, especially younger workers.
Approximately 13% of Generation Y reduced their contributions to the retirement plan and 11% withdrew money from their retirement accounts to meet early accounts.
Among Generation X, 15% reduced their contributions to the retirement plan and 9% retired.
Low interest rates and higher inflation pose additional problems for long-term financial security, according to Natixis, which surveyed 750 individual investors.
“People are really aware of the critical risks they face and they’ve all been exacerbated by the pandemic,” Dave Goodsell said. executive director of the Natixis ’Center for Investor Insight.
The US is losing ground
Natixis ’annual ranking compares countries based on the finances, material well-being, health, and quality of life they offer during retirement.
This year, the United States fell one place to number 17 in 44 countries.
Compared to 2020, the United States scored lower in three of the four categories, including health, quality of life, and finances, mainly due to reduced life expectancy, lower grades of overall happiness and the environment, as well as higher levels of public debt.
These countries are the first in the United States
Iceland got the highest ranking for the third year in a row. Switzerland, Norway, Ireland, the Netherlands, New Zealand and Australia fell slightly due to their willingness to retire, but retained the top spots, while Germany, Denmark and Canada completed the top ten.
With more retirees around the world responsible for their own financial security, the countries that ranked best achieved a balance with low levels of income inequality, available health care and strong social programs, according to Goodsell.
The Natixis index includes 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 receive a score in each category and the combined scores determine a final overall ranking for the 44 nations included.