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Canada Ranks 10th for Retiree Wellbeing in Natixis Investment Managers' 2021 Global Retirement Index as Savers Hope for a MiracleCanada slipped two spots to No. 10 among developed nations in the 2021 Global Retirement Index (GRI), Natixis Investment Managers (Natixis IM) annual snapshot of the relative financial security of retirees in 44 countries. The ninth annual index shows that many Canadians feel that their retirement dreams are slipping away, notably as a result of the macro-economic consequences of the COVID-19 pandemic including increased government debt, rising inflation and persistently low interest rates. Savers are shouldering a growing share of the responsibility for funding their retirement and are increasingly looking to the private sector and financial advisors for help. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211102005390/en/ Top 25 Countries in the 2021 Natixis Investment Managers Global Retirement Index To understand retirement savers' outlook for a financially secure retirement, Natixis also surveyed more than 8,500 individual investors globally, including 300 in Canada. The survey of Canadian investors found:
"The pandemic has exacerbated financial inequality and accelerated long-term trends that are eroding the prospect of retirement security for many," said Jim Roach, Senior Vice President of Retirement Strategies at Natixis Investment Managers. "As policymakers look to normalize fiscal and economic policy in the wake of the pandemic, Natixis Investment Managers' Global Retirement Index provides insight into the factors having the greatest impact on retirement security around the world." The GRI examines 18 performance indicators of retiree welfare grouped into four thematic sub-indices, namely:
The GRI calculates the performance for each country on these criteria, resulting in a composite score that provides a comparative tool for evaluating retirement security globally, as well as identifying drivers of changes in each country's score and ranking. 2021 Global Retirement Index: A global view of retiree wellbeing
Canada ranked among the top 20 for all four sub-indices in the 2021 Global Retirement Index, placing No. 10 for Finances in Retirement; No.11 in Health; No. 16 in Quality of Life; and No. 19 in Material Wellbeing. Compared to last year, Canada had lower scores in two of four sub-indices, including:
On the Health sub-index, Canada's scores remained the same as last year, with higher scores in life expectancy and health expenditure per capita offset by a lower score in insured health expenditures. Canada scored higher in Material Wellbeing because of improvements in income equality and income per capita. Nearly two-thirds (64%) of Canadians surveyed believe that income inequality has a detrimental impact on overall retirement security. Public policy and the private sector opportunity in a world looking beyond COVID In response to the COVID-19 pandemic, governments around the world rolled out massive fiscal stimulus packages, cut or froze interest rates, and flooded the capital markets with unprecedented liquidity. Yet even as these policy actions helped spur recovery and growth, they represent a significant long-term risk to retirees who are especially vulnerable to low yields and face the challenge of generating a sustainable income in retirement. "The challenge is compounded as retirees invest in riskier assets to generate the returns they need at a point in life when they may not have the time to recoup potential losses," said Dave Goodsell, Executive Director, Natixis IM Center for Investor Insight. "Fortunately for today's policy makers, low interest rates make debt more manageable. However, growing levels of public debt and the need to find budgetary solutions will force tough decisions about government spending, including public retirement benefits, raising taxes, raising the retirement age, and cutting benefits." Natixis IM's survey found that Canadian investors are saving 16% of their current income for retirement. Yet even at this rate, 27% believe they will never have enough money to retire comfortably, including nearly half (48%) of millennials and more than one-third (36%) of Generation X. More worrisome is that these findings represent a population of investors with a median net worth of CAD 550,000 who have accumulated a median of CAD 300,000 in savings for retirement, far more than the average amount of CAD 112,295 Canadians held in Registered Retirement Savings Plans (RRSP) accounts in 2020.1 The survey also highlights the opportunity that exists for the private sector, namely employers and financial advisors, to play a role:
A report on the 2021 Global Retirement Index explores in-depth these findings and other factors affecting retirement security globally. Please find the full report here. Methodology The Global Retirement Index assesses factors that drive retirement security across 44 countries where retirement is a pressing social and economic issue. It was compiled by Natixis Investment Managers with support from CoreData Research. The index includes International Monetary Fund (IMF) advanced economies; members of the Organization for Economic Cooperation and Development (OECD); and the BRIC countries (Brazil, Russia, India and China). The researchers calculated a mean score in each category and combined the category scores for a final overall ranking of the 44 nations studied. Natixis surveyed 8,550 individual investors globally, including 300 in Canada with the goal of understanding their views on the markets, investing and financial security. Each of the respondents had minimum net investable assets of $120,000 CAD (or Purchase Price Parity [PPP] equivalent). High net worth respondents were those with more than $1 million (USD equivalent) in total net worth, minus the value of primary residence. The survey was conducted in March and April 2021 by the research firm CoreData. About the Natixis Investment Institute The Natixis Investment Institute applies Active Thinking® to critical issues shaping the investment landscape. A global effort, the Institute combines expertise in the areas of investor sentiment, macroeconomics, and portfolio construction within Natixis Investment Managers, along with the unique perspectives of our affiliated investment managers and experts outside the greater Natixis organization. Our goal is to fuel a more substantive discussion of issues with a 360° view of markets and insightful analysis of investment trends. About Natixis Investment Managers Natixis Investment Managers' multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 20 active managers. Ranked among the world's largest asset managers1 with more than $1.4 trillion assets under management2 (€1,182.5 billion), Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles. The firm is dedicated to advancing sustainable finance and developing innovative Environmental, Social, and Governance (ESG) products. Natixis Investment Managers consults and partners with its clients and offers insight on markets and assumptions to better align strategies with long-term goals. Headquartered in Paris and Boston, Natixis Investment Managers is wholly-owned by Natixis. Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Investment Managers' affiliated investment management firms include AEW; Alliance Entreprendre; AlphaSimplex Group; DNCA Investments;3 Dorval Asset Management; Flexstone Partners; Gateway (News - Alert) Investment Advisers; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners; Vaughan Nelson Investment Management; and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions and Natixis Advisors, LLC. Not all offerings available in all jurisdictions. For additional information, please visit Natixis Investment Managers' website at im.natixis.com | LinkedIn (News - Alert): linkedin.com/company/natixis-investment-managers. Natixis Investment Managers' distribution and service groups include Natixis Distribution, LLC, a limited purpose broker-dealer and the distributor of various U.S. registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.
1 Cerulli Quantitative Update: Global Markets 2021 ranked Natixis Investment Managers as the 15th largest asset manager in the world based on assets under management as of December 31, 2020.
The views and opinions expressed may change based on market and other conditions. This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. 3881388.1.1 1 Data: BMO Financial Group, Registered Retirement Savings Plan (RRSP) study. Average retirement accounts holdings by Canadian households in 2020.
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