- Three particular issues facing investors today: the changing demographics of aging populations that are challenging the math of pay-as-you-go retirement systems globally, short-term pressures like inflation (particularly in the US), and rising interest rates. Rising rates are leading to market turbulence, making it a tough year for retirees.
- From an Australian perspective, Nick Sherry stresses the importance of retirement returns over the long term. Considering a working life of 40–45 years, and another 20 or so in retirement, a long-term perspective is critical. Diversification is another crucial component.
- The complexity of retirement is illustrated by examining the four key sub-indexes that make up the Global Retirement Index’s country scores and how the overall scores are compiled. Among Finances in Retirement, Material Wellbeing, Quality of Life, and Health, Goodsell points out that Finances in Retirement is particularly concerning for investors. “Fortunately, this is one area where investors can exert control by carefully managing their retirement savings,” says Goodsell.
- As for how a country fares in its overall score, it comes down to balance. Countries that perform the highest overall are those that perform the best across all four categories. Perhaps a good guide for investors, as well.
The Global Retirement Index (GRI) is a multi-dimensional index developed by Natixis Investment Managers and CoreData Research to examine the factors driving retirement security and to provide a comparison tool for best practices in retirement policy.
The index includes International Monetary Fund (IMF) advanced economies, members of the Organization for Economic Cooperation and Development (OECD) and the BRIC countries (Brazil, Russia, India and China). The researchers calculated a mean score in each category and combined the category scores for a final overall ranking of the 44 nations studied.
The data shown represents the opinion of those surveyed, and may change based on market and other conditions. It should not be construed as investment advice.
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 2022 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.
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