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2023 Global Retirement Index Finds Improved Retirement Security Conditions, But Most Canadians Aren't Feeling ItFor the first time in ten years, nearly all developed countries in Natixis Investment Managers' Global Retirement Index (GRI), including Canada, received a higher overall score for retirement security over the prior year. The annual index, released today, shows improved economic conditions, mainly the result of employment growth, wage gains, and interest rates. Yet Natixis Investment Managers' (Natixis IM) research reveals that optimism at the macro level is not being felt in the everyday lives of retirees and working Canadians. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230913812422/en/ Full Rankings: 2023 Natixis Investment Managers Global Retirement Index (Graphic: Business Wire) Natixis IM's survey of affluent, individual investors with at least $100,000 in investable assets found that 32% of working respondents in Canada feel inflation is killing their dreams for retirement. Most (80%) of Canadians surveyed, including 68% of retirees, say that recent history has shown just how big a threat inflation is to their retirement security, devaluing their income and savings. At the same time, many are contemplating the potential threat of reduced government benefits, which ranks among their top three fears about retirement, the survey found. While 36% of working Canadians envision having the financial freedom to do what they want, when they want in retirement, 64% expect to make tough choices and trade-offs, including:
"As economies have rebounded from the global pandemic, employment and wages have increased but so has inflation, forcing central banks to boost interest rates. It's a good news-bad news scenario for retirement security, and further underscores the complexity of the retirement funding challenge," said Liana Magner, Executive Vice President and Head of Retirement and Institutional in the US for Natixis Investment Managers. Retirement Index Trends Canada received an overall score of 74% in 2023, up from 71% in 2022. The country ascended to 12th from 15th place in this year's annual ranking of retirement security among the 44 countries in the Index. This was powered by higher scores in the unemployment and income equality indicators. The improvement also stems from stabilization of Canada's interest rates and a marked improvement in progress implementing UN Sustainable Development goals which drove improvements in water resources and sanitation. At the same time, Canada saw a slight decrease in the population's happiness scores as well as a decrease in life expectancy. Natixis IM created the GRI in collaboration with CoreData Research to establish a global benchmark that incorporates the wide variety of factors essential for people to enjoy a healthy and secure retirement including not only important financial factors but also access to and cost of healthcare, climate conditions, the state of governance and general happiness of the population. The GRI rankings are relative, not absolute, and based on an aggregate of mean scores from 0% to 100% for 18 performance measures in each of four sub-indices -- Finances in retirement, material well-being, health, and quality of life - which are combined to provide an overall picture of the environment for retirees. For the four sub-indices, Canada ranks as follows in the 2023 GRI compared to the year prior:
The Global Top 25 For the second consecutive year, Norway held its first-place title on the GRI, followed in order by Switzerland (No. 2), Iceland (No. 3), and Ireland (No. 4), all of which held the same rankings as in 2022. Luxembourg and the Netherlands both climbed two places in the rankings to 5th and 6th respectively. In doing so, they outpaced Australia, which dropped out of the top five to 7th, and New Zealand came in at 8th. Germany moved into the top ten at No. 9, replacing Denmark, which dropped from the 9th to 10th spot. The Czech Republic, which has the lowest unemployment in the European Union, dropped out of the list of top 10 countries, plunging from 10th to 18th as it struggles to curb wage-driven inflation.
Nearly all of the developed countries in the Index received a higher overall score for 2023. Among developed countries, only Portugal, Spain and Japan had decreases. The list of countries in the top 25 has remained the same for four consecutive years, with notable shifts among them. Over the past year, Austria and Canada both ascended three places to 11 Five key risks to retirement security Natixis IM's 2023 survey of Individual Investors found that 38% of Canadians still working think it will take a miracle to be able to retire securely, up from the 25% who said the same in 2021. "Saving for retirement was already a challenge. Now, as people think about the impact of higher prices, longer lives, and the potential for reduced retirement benefits, many are doubting whether they will be able to put all the pieces together," said Dave Goodsell, Head of the Natixis Center for Investor Insights. "They may think they need a miracle, but the best course of action is to face the challenges head-on through planning and education." The GRI and Natixis IM's research identify five key risks to retirement security, including:
Natixis IM's report on the Global Retirement Index includes builds on findings from:
A copy of the full report from the 2023 Natixis Investment Managers Global Retirement Index can be found at: https://im.natixis.com/intl/research/2023-global-retirement-index 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. About the Natixis Center for Investor Insight The Natixis Center for Investor Insight is a global research initiative focused on the critical issues shaping today's investment landscape. The Center examines sentiment and behavior, market outlooks and trends, and risk perceptions of institutional investors, financial professionals and individuals around the world. 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 15 active managers. Ranked among the world's largest asset managers1 with more than $1.2 trillion assets under management2 (€1.1 trillion), Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals. Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France through the Banque Populaire and Caisse d'Epargne retail networks. Natixis Investment Managers' affiliated investment management firms include AEW; DNCA Investments;3 Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; 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 are available in all jurisdictions. For additional information, please visit Natixis Investment Managers' website at im.natixis.com | LinkedIn: 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 2023 ranked Natixis Investment Managers as the 17th largest asset manager in the world based on assets under management as of December 31, 2022.
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