36% of Americans say they won’t have enough to retire, report says

Retirement is less and less like a given, at least in the United States.

Overall, 59% of Americans say they accept having to continue working longer, while 36% now believe that they will never have enough money to be able to retire, according to the latest data from the Natixis Global Retirement Index.

Even more – around 41% – said their ability to be financially secure in retirement “is going to take a miracle,” according to the report.

The Covid pandemic has taken a heavy toll on Americans’ feelings about their own retirement security.

One of the main concerns is how significant increases in public spending to get the economy back on track will lead to reduced social security benefits.

Already, the Treasury Department has said the Social Security trust fund most Americans rely on for retirement will run out of money sooner than expected.

The outlook, made worse by the pandemic, also threatens to cut retirement payments and increase health care costs for older Americans.

At the same time, the pandemic has set back savings for retirement, especially young workers.

About 13% of millennials cut their pension contributions and 11% withdrew money from their retirement accounts to make ends meet, according to the Natixis report.

Among Gen Xers, 15% reduced their pension contributions and 9% made a withdrawal.

Low interest rates and higher inflation pose additional challenges for long-term financial security, according to Natixis, which surveyed 750 retail investors.

“People are really aware of the critical risks they face, and they have all been exacerbated by the pandemic,” said Dave Goodsell, Executive Director of the Center for Investor Insight at Natixis.

Natixis’ annual ranking compares countries on the basis of finances, material well-being, health and the quality of life they offer in retirement.

This year, the United States has fallen to 17th out of 44 countries.

Compared to 2020, the United States scored lower in three of four categories including health, quality of life and finances, mainly due to shortened life expectancy, lower scores on the general happiness and the environment as well as higher levels of public debt.

Iceland achieved the highest overall ranking for the third year in a row. Switzerland, Norway, Ireland, the Netherlands, New Zealand and Australia all declined slightly in retirement readiness but still held onto the top spots, while Germany, Denmark and Canada completed the top 10.

With more retirees globally responsible for their own financial security, the top-ranked countries have struck a balance with low levels of income inequality, available health care and strong social programs, according to Goodsell.

The Natixis index includes the advanced economies of the International Monetary Fund, members of the Organization for Economic Co-operation and Development and the BRIC countries (Brazil, Russia, India and China).

Countries are given a score in each category and the combined scores determine a final overall ranking for the 44 countries included.