Getting old in America isn’t what it used to be. In a worldwide study, the U.S. has fallen to No. 17, down three spots from last year, in its ability to offer its citizens a secure retirement. The Natixis Global Asset Management Global Retirement Index ranks 43 mainly developed countries on this score.
Why did the U.S. have such a dismal showing? We took hits in income equality, health care spending and life expectancy. While America may have the fifth-highest income per capita, we have the sixth lowest score for income equality, suggesting that retirement saving is difficult for average workers. Our life expectancy fell, yet we spend the most on health care compared to the other countries analyzed in the index.
A big part of the problem is demographics. Overall, we are living longer — and that’s not necessarily a good thing for retirement planning. About half of the people born today in the developed world are expected to live past the age of 100, up from a global average life expectancy of 71 currently.
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