Canada drops to No. 10 among developed nations for retiree well-being after spending two years in a row at No. 8, according to Natixis Investment Managers’ annual global retirement index.
The index, which provides an overview of the relative well-being and financial security of retirees in 44 countries, examined several factors, including whether a country has a great health-care system and an outstanding health record, a very high quality of life, a well-preserved environment with low levels of pollution, a sound financial system offering high rates of true return and a very high level of material wealth.
It found retirement security in Canada and other developed nations around the world now faces uncertainty due to the immediate threat of the ongoing coronavirus pandemic as well as longer-term worries about the environment, geopolitics and inflation.
Canada swaps places with Germany this year (which is at No. 8,) dropping to No. 10 due to its lower scores in the finances and quality of life sub-indices, noted the report. Meanwhile, Canada scored higher in the material well-being (No. 19) sub-index compared to last year and also had higher scores in both the income equality and income per capita indicators this year.
Globally, retiree well-being is at risk due to inflation, interest rates, public debt and the financial challenges of employment and health care, said the report. And, the report added, these risks come at a time when many retirement systems are shifting from defined benefit pensions to defined contribution plans.
In addition, a survey conducted for Natixis among 8,550 people in 24 countries found eight in 10 individuals said they know it’s increasingly their responsibility to fund retirement. However, the same percentage (80 per cent) said they believe companies should be responsible for helping them achieve a secure retirement. And the same percentage (80 per cent) said they’re more inclined to work for a company that offered matching contributions to their retirement savings plan.
Meanwhile, seven in 10 said having access to investments that reflect their personal values would motivate them to save more for retirement. And almost two-thirds (62 per cent) of survey respondents globally said they need professional advice selecting investments in their retirement plan even though more than half rated their investment knowledge as strong and 62 per cent said they understand the investments available in their retirement plan.