Personal Responsibility, Public Trust, and the Future of Retirement Security

Retirement was once a simple proposition: Individuals worked a lifetime and saved, employers provided a pension, and payroll taxes funded government benefits. But demographics and economics have rendered old models unsustainable. In response to surging populations, expanding lifespans, and shrinking government budgets, policy makers and employers continue to shift the responsibility of retirement funding to the individual.

In this, our fourth annual Global Retirement Index, we offer:

  • An examination of top performing countries for retirement security in 2016.
  • An analysis of best practices for sound retirement policy.
  • An assessment of what can be done by policy makers, employers, individuals and asset managers to shore up retirement security globally.

The countries at the top of our Index provide solid best practices for ensuring retirement security. We see four key trends that will help shape the future of retirement security globally:

  • Access – As more of the responsibility for funding retirement falls to individuals, it’s critical that policy makers and employers work to ensure they are set up to succeed.
  • Incentives – Across the globe, policy makers know that favorable tax treatment can be a powerful tool to drive positive behavior in retirement saving. Employers also play a key role in increasing participation with matching contributions, employee education, and access to professional advice.
  • Engagement – For individuals, the key is to move beyond just participation and engage fully in their retirement plan. It’s critical to understand your goals, understand the choices you have and most importantly understand just how much risk you can take on. It’s then that you can move from merely saving for retirement to investing for your future.
  • Economics – Retirement security extends well beyond the savings vehicles themselves and includes consideration for a growing population that will be living on a fixed income for many years to come. Monetary, fiscal, and healthcare policies all play a critical role in ensuring that retirees are self-sufficient.

With individuals assuming greater responsibility for their retirement funding, it will be up to policy makers, employers and the investment industry at large to manage these factors effectively, build innovative solutions, and ultimately earn the trust of individuals worldwide who need to be supported in their pursuit of a secure retirement.

Ed Farrington, Executive Vice President for Retirement at Natixis Global Asset Management, discusses the findings from the 2016 Global Retirement Index and how asset managers can work with policy makers, employers and individuals to help workers retire with dignity.

Click here to read the full report

Published in September 2016

Natixis Global Asset Management S.A.
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This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.

Copyright © 2016 NATIXIS GLOBAL ASSET MANAGEMENT S.A. – All rights reserved

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