The Wake-Up Call Heard ‘Round the World
Published on December 4, 2014
Not just for Americans
The wake-up call for retirement savings is not just for Americans, people around the world are realizing that they need to save more.
The financial services industry has long expressed that consumers either don’t understand the need to supplement public or employer pensions, or think they have more than enough time to save. But, according to Accenture’s latest Global Retirement Services Survey, some people around the world are waking up to retirement reality. These consumers are fully aware of the risk of outliving their savings and are now ready to take responsibility for ensuring that their own retirement is comfortable, because no one else will.
The study found that 82 percent of respondents are worried about their post-retirement finances, and 57 percent believe their standard of living will fall when they stop working. An overwhelming majority of respondents are prepared to do something about it! A whopping 95 percent of respondents are willing to set aside money for their retirement. The amount differs considerably but survey respondents are willing to invest on average 17.2 percent of their monthly pretax dollars in retirement.
Who would these consumers turn to for retirement investment help?
- Financial advisors, insurance brokers or stock brokers (61 percent)
- Insurance companies (61 percent)
- Banks (58 percent)
- Comparison websites (57 percent)
Retirement around the globe
A recent survey by Natixis Global Asset Management, an investment firm, evaluated 150 nations to see which do best in ensuring retirement security and meeting retirees’ financial expectations. The report findings are eye-opening to be sure (see chart below). Americans are trailing behind other industrialized countries in retirement savings.
How is this possible? The shift away from traditional pension plans to 401(k) plans may partly explain why the United States tends to show poorly compared with many other industrialized countries on measures of retirement security. However, the reality is that Americans need to get busy saving.
If you are interested in what retirement looks like around the world, check our blog posts about these countries:
- Costa Rica
- St. Thomas, U.S. Virgin Islands
Get Your Retirement Wake-Up Call
A self-directed individual retirement account is a great way to boost retirement savings through alternative assets that individuals already know and understand; these include real estate, precious metals, commercial paper and notes–nontraditional investment options not allowed within typical retirement plans.
Savvy investors can develop a more diverse portfolio and wake up their savings strategy with potentially more lucrative investments through self-direction. Contact Next Generation Trust Services’ professionals with your questions about self-directed retirement plans at (888) 857-8058 or Info@NextGenerationTrust.com or check out our Starter Kits.Back to Blog