American workers are somewhat confident in their ability to retire comfortably; but workers globally, not so much.
Only 29% of workers globally are very/extremely confident that they will be able to retire comfortably (36% U.S.).
Just 23% of people globally are very/extremely confident that their healthcare will be affordable in retirement (31% U.S.).
Two in five people globally feel stressed about their long-term financial plans for retirement at least once per month (51% U.S.).
The most frequently cited retirement concerns are declining physical health (50% global, 44% U.S.) and running out of money (40% global, 49% U.S.), according to new research.
These are the major findings in The New Social Contract: Empowering individuals in a transitioning world, a new research report from Aegon Center for Longevity and Retirement and nonprofits Transamerica Center for Retirement Studies that’s based on 16,000 workers and retirees in 15 countries.
It adds that many individuals are counting on retirement income from Social Security, employer benefits, and personal savings, and the vast majority recognize that government retirement benefit programs are under strain.
“Globally, only 6% of people believe that the Social Security-like provision in their country will remain perfectly affordable and that the government should not take any action (8% U.S.). The message is clear that governments need to take action. Whatever the solutions may be, the reforms must be fair and equitable.”
Noting that employers play an invaluable role in helping their employees prepare for retirement, should look beyond the traditional role of providing workplace retirement benefits and health, disability, and life insurance, and expand their current offering to include workplace wellness programs.
Employers can also promote lifelong learning through training, development, and career-pathing programs.