A global analysis of factors influencing retirement security has revealed that the United States has fallen to 22nd place in 2024, down from 20th in 2023, according to the Global Retirement Index by Natixis Investment Managers. The country’s ranking was impacted primarily by a decline in material wellbeing, driven by rising unemployment, and a drop in the happiness sub-index.
In the finance sub-index, the US holds the 15th spot. While its overall position in this category remained relatively stable, the report notes improvements in areas such as tax pressure, interest rates, bank non-performing loans, and old-age dependency. These improvements were partly attributed to the Federal Reserve’s decision to maintain interest rates to curb inflation, with possible rate reductions anticipated later in the year.
Despite these challenges, the US leads all other nations in GDP growth, recording a rate of 2.5%, fueled largely by increased immigration. Globally, the study indicates a stabilizing retirement outlook. However, it also highlights growing concerns as individuals increasingly recognize the responsibility of independently funding their retirement.
Dave Goodsell, Executive Director of the Natixis Center for Investor Insight, commented, “This year’s index shows consistent global results, but there’s room for improvement. In the United States, retirement security presents a mixed picture: while inflation is gradually normalizing, unemployment and public debt levels continue to rise.”
The report, developed in collaboration with Core Data Research, also draws attention to the challenges faced by individuals. According to Natixis IM’s Global Survey of Individual Investors, 27% of respondents believe that even saving $1 million wouldn’t be sufficient for retirement. This sentiment was echoed by 24% of respondents who have already saved $1 million. The survey identified four key risks for individuals: interest rates, inflation, public debt, and unrealistic assumptions or goals.
Liana Magner, Executive Vice President and Head of Retirement and Institutional in the US for Natixis Investment Managers, emphasized the need for financial service providers to play a more proactive role in addressing these issues. “To avert future crises, it is essential to deliver personalized solutions that consider both the current economic environment and the specific retirement needs of individuals. This includes improving access to both public and private markets,” Magner stated.
