2021 Global Retirement Index
It'll take a miracle
The search for retirement security in an insecure world
In 2021, the world is full of uncertainties for retirees and those saving for retirement. Security is a critical issue — from the immediate challenges of more waves of the pandemic, to longer-term questions about the environment, geopolitics, and inflation.
Retirement is clearly among the top issues for investors. In fact, 40% of investors say “it will take a miracle” to retire securely.1 The 2021 Natixis Global Retirement Index looks at the state of retirement security around the world — and takes a deep dive into four critical concerns for retirement savers, including inflation, interest rates, public debt, and a world of worries.
Inflation: A real-world lesson in purchasing power.
Low rates: Boon to customers. Bust for retirees.
Public debt: Will retirees have to foot the bill?
A world of worry: Into the great unknown of retirement.
The risks presented by inflation, interest rates, and public debt, and the financial challenges of employment and healthcare are great. And they come at a time when many retirement systems are shifting from traditional pensions to defined contribution solutions.
As a result, eight in ten individuals know it is increasingly their responsibility to fund retirement. So, how can retirement investors tackle their goal of a more secure retirement? Individuals surveyed say their employer is a first line of defense in the process:
- 80% of individuals (including 77% of business owners in our survey) believe companies should be responsible for helping them achieve a secure retirement.
- 80% of individuals say they would be more inclined to work for a company that offered matching contributions to their retirement savings plan.
- Seven in ten say having access to investments that reflect their personal values would motivate them to save more for retirement.
- 62% of individuals surveyed globally say they need professional advice selecting investments in their retirement plan. (And this is a group where more than half rate their investment knowledge as strong, and 62% say they understand the investments available in their retirement plan.)
In the end, society is shifting the responsibility for a more secure retirement to individuals. More than three-quarters (78%) of individuals say that the responsibility of funding for retirement is falling squarely on their shoulders. It’s important to help them make smart decisions to fulfill that responsibility. So, maybe it won’t take a miracle, but for many, it will definitely take a commitment from individuals, employers, and policy makers to achieve retirement security.
Global retirement security is a worthy goal. If stakeholders live up to their roles and responsibilities, it can be within reach. To get the full details on where your country ranks — and learn more about the key concerns around global retirement security — download our full report.
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This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of September 2021 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted, and actual results may vary.
All investing involves risk, including the risk of loss. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
Natixis Distribution, LLC is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.