Natixis 2022 Global Retirement Index: From Sydney to Seattle and Beyond

By Dave Goodsell

For ten years, the Natixis Global Retirement Index has been a valuable tool and a global benchmark for policymakers, the press, employers, advisors, and investors examining the many facets of retirement security. Dave Goodsell, the report’s author and Executive Director for the Natixis Center for Investor Insight, swaps observations with Australian superannuation expert Nick Sherry. Here are highlights of their conversation:
  • 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 US ranked 18th in this year’s survey, well behind Australia’s #5 spot. The full report unpacks the underlying details with compelling commentary on the state of retirement security globally. Regardless of your geographic location, from both a government and investor perspective, today’s retirement environment is both challenging and complex. Access the full report here: https://www.im.natixis.com/us/research/2022-global-retirement-index
About the 2022 Natixis Global Retirement Index
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.

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. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

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.

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