Here is the Number 1 Place to Retire Outside the U.S.
NEW YORK ( MainStreet) Most people take the fact that they're retiring in the U.S. as a given. But, spending your golden years outside the red-white-and-blue boundaries might be worth considering when you read what Natixis Global Asset Management (NGAM) found in its recent retirement study :
The United States ranks nineteenth worldwide in the retirement security of its citizens...The findings suggest that Americans will need to pick up a bigger share of their retirement costs especially as the number of retirees grows and the government's ability to support them fades....
"The message is clear: you will be called on to finance more of your retirement," said John Hailer, NGAM's president and chief executive officer for the Americas and Asia. "Citizens of other industrialized nations can rely on strong social safety nets in old age, at least for now..."
Tracey Flaherty, senior vice president of Government Relations & Retirement Strategy at Natixis Global Asset Management, says one of the more obvious issues with the U.S. retirement market is the dominance spending seems to have over the culture.
"One of the problems we haveuniquely in the U.S.is our citizens are saving too little for retirement," says Flaherty. "If you look at us compared to the rest of the world we are not a nation of savers and that's a problem." However, Flaherty also recognizes the existence of trends that offer future retirees less incentive to save for life after work.
Compare this to Australia, which ranked nine places above the United States for retiree security, at the eleventh spot.
According to a recent report from the Center for Retirement Research at Boston College, 90% of working Australians, ages 18 to 70 have retirement savings. They are automatically enrolled in a Superannuation account, to which their employers are mandated to contribute up to 12% of their earnings by 2020 (9% currently). The total assets of these accounts now exceed Australia's GDP.
On the flip side: citizens of the United States are mandated to contribute to the Social Security program for 40 quarters of their working lives. It makes no savings for individual workers, nor are all workers eligible to receive Social Security benefits. In addition, depending on one's income, individuals can expect taxes on up to 85% of their benefits.
That being said, the following points are a few others NGAM found on how retiring within the United States compares to 150 other countries. Here's how the U.S. ranked in...
Health (23): The U.S. has the world's highest per-capita health spending, but lags behibnd other nations in access to care. Americans also trail citizens of most of the developed world in life expectancy.