Maybe you should retire outside the US
According to a new study, the nation lags well behind many others when it comes to overall financial security for retirees.
Thinking about moving, once you retire? If you're American, how about out of the country?
A new annual index by Boston-based Natixis Global Asset Management says the U.S. ranks 19th worldwide when it comes to retirement security.
The study looked at how well retirees in 150 countries live, based on health, material well-being, their finances and other personal data. Not surprisingly, the top 10 countries on the list were all in Western Europe, which has a tradition of strong health care and social programs for retirees. Norway came in on top, followed by Switzerland, Luxembourg, Sweden and Austria.
Natixis says a number of factors are at work when it comes to its rankings.While the U.S. has the world's largest pension market, it still trails less affluent nations when it comes to income and health metrics. And even though the U.S. might have the most per-capita health care spending, individuals still have to pay at least part of their own health care expenses.
"The U.S. does lag behind Western Europe and some smaller economies in retirement security, specifically in the areas of health and income equality," Tracey Flaherty, Natixis senior vice president for government relations and retirement strategy, said in an interview with Pension&Investments. "There are also demographic trends (in the U.S.) that will have a negative impact on retirement."
Among those trends, according to the study, is America's rapidly aging population, higher life expectancy and declining birth rates. And as the over-65 population increases, so will the pressure on federal programs like Social Security and Medicare.
Combine those figures with many Americans' lack of personal investment and savings with the economic toll taken on retirement savings during the ongoing global economic downturn, and you have a recipe for trouble.
The study's overall message, says Natixis President and CEO for the Americas and Asia John Hailer, is that Americans will be called on to finance more of their own retirements.
"Citizens of other industrialized nations may rely on strong social safety nets in old age, at least for now," he said in a press release. "In the U.S. we encourage workers to plan, save and invest, and promote policies that help them meet their future needs."
VIDEO ON MSN MONEY
Let me see if I got this right, in the past few years we have been told we need to do the following:
- Save more for our retirement
- Do not plan an getting as much from social security
- Work longer hours
- Work past normal retirement age
- Pay more in taxes and get less from the government
- Pay fees for things the government use to provide free
- Take more risk in our investments but get less protection for wall street greed
- Get paid only pennies in interest for the money you save at the bank
- Be happy making less money for working then I made 10 years ago
- Pay to cover the health care for illegal immigrants'
- Get a college education with no grants but with loans at interest rates higher then I pay on a mortgage
- Do not tax the rich or they will pay me less then they are already paying.
- Reduce my standard of living (sounds like a good idea for the rich)
- lastly remember to smile cause the government is here to screw you at every chance they get.
Funny how life has change for us yet I have not heard of any cuts in pay or benefits for the congress me or the president. I have an idea lets cut the House Fitness Gym because based on the half naked photos of Congressman Weiner (for which he was so proud of his body) if that is the best that Fitness Center can do I think it is a waste.
Lets not forget the joy a bailing out the banks and auto makers so they can pay bonuses to the top execs. We were told that they had to pay the bonuses for two reasons. First the execs achieved their goals and have therefore earned the bonus. Was their goal really to run the company into the ground. How do you get a job like that? Second, if we did not pay the bonus the execs would leave their jobs and we needed them for all their knowledge. They would leave their job and what, join the rest of us in the unemployment line. Did we really need their knowledge of how to screw up the business.
Just wondering were is my Obama money?
The 3 smartest financial moves Americans (or anyone) can make is....
1. Have their home paid for when your ready to retire.
2. Have their home paid for when your ready to retire.
3. Have their home paid for when your ready to retire.
Stop taking out 2nd & 3rd mortgage's.
I'd like to see the writer suggest that illegal immigrants should retire to someplace else besides the US - Mexico comes to mind
...that would certainly make it easier on the rest of us
I doubt you are going to save any money by moving to Western Europe. The social programs may be more encompassing (for the moment), but those get paid for by higher taxes and therefore a higher cost of living. The people providing services have to make enough to pay all those taxes, and VAT is a direct high tax on everything you buy--just hidden in the price.
But really, all cultures are full of BS, so just pick one that is charming to you. Life's too short for all this analysis!
1. I would think we want people to retire especially since we have a shortage of jobs. We need rotation through the workforce, we cannot create enough jobs to have people working into their 70's.
2. When people retire (if they do not have to save all their money for healthcare costs and premiums) they tend to spend it on eating out, travel, etc. We are a consumer driven economy.
2. SS is not a retirement plan but people payed into it. Not everyone lives to 70. It is not realistic to
assume people can live on the 1200 average monthly income. Do most of you want too? I would say it is envy for some of you that some people get the above. Clean up the fraud and the other waste in it regarding benefits that were not there in the original plan. Like Congressman Ryan getting a monthly benefit to use because his dad died early in life. He used his to go to College. Both Dems and Republicans are at fault here.
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