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1、Good News.Bad News.Retirement security improves but few feel more secure.2023 NATIXIS GLOBAL RETIREMENT INDEX2Global Retirement Index 2023Contents The Good and Bad News on Retirement Security The Global Retirement Index 2023 Framework The Best Performers Performance by Sub-Index Finances in Retireme

2、nt Index Spotlight:The Australian superannuation system-a model for other nations?Material Wellbeing Index Spotlight:Japan offers a warning-and lessons-for the aging developed world Health Index Quality of Life Index Spotlight:Crisis as a catalyst:Russian invasion brings new urgency to energy transi

3、tion The Top 25:Year-on-Year Trends Country Reports References Detailed Framework Appendix A Methodology Constructing the Indicators Constructing the Global Retirement Index Appendix B:Full Rankings Disclosures21718192122242729313335384066676868687273743Global Retirement Index 2023For the first time

4、 in a decade,the data presents reasons for renewed optimism about retirement security.The pandemic is fading in the rearview mirror,inflation is easing in North America and Europe,central bank moves have boosted interest rates,unemployment in key markets is at or near historic lows,and nearly all of

5、 the developed countries included in the Natixis Global Retirement Index received a higher overall score for 2023.But while improvements in the areas of finances in retirement,material wellbeing,health,and quality of life suggest that retirement security feels more attainable at the macro level,indi

6、viduals in many countries are not as optimistic according to results of the 2023 Natixis Global Survey of Individual Investors.In fact,even with inflation declining to as low as 3%in the US and 5.5%in Europe,1 more than four out of ten working individuals(42%)say inflation is killing their dreams of

7、 retirement.More specifically,68%of investors in this group of 7,552 individuals in 23 countries say recent inflation has significantly hurt their ability to save for retirement.THE GOOD AND BAD NEWS ON RETIREMENTIll have the freedom to do what I want when I wantIll be stuck having to workIll have n

8、o choice but to live frugally56%28%21%Ill be forced to move somewhere less expensive Ill have to sell my homeIll have to rely on friends&family to make ends meet21%12%10%More than half of individuals think they will have financial freedom in retirement.But 44%have concerns for their outlook on retir

9、ement.42%of working individuals say inflation is killing their dreams of retirement4Global Retirement Index 2023 Inflation:Even as it recedes in the short term,individuals have learned hard lessons about just how fast and how high prices can rise.In the long term they will need to reassess savings a

10、nd investment goals to ensure they are better positioned for any future spikes that could kill their chances at a secure retirement.Interest rates:A decade of record low interest rates had hampered retirees ability to generate income.Now with rates rising,both those in retirement and those who arent

11、 need to better understand the ripple effects of a rising rate environment on their financial picture.Most individuals dont.Public debt:The Global Financial Crisis added$12 trillion to public debt in OECD countries,2 then the Global Pandemic added$18 trillion more.3 In the end,somebody has to pay th

12、e bill and it could impact retirement income plans of individuals across the globe.Demographics:An already aging global population is experiencing the effect of a “Silver Tsunami”as a larger and even older population is pressuring traditional notions of retirement.The results are already visible as

13、the transition from defined benefit to defined contribution escalates and policymakers grapple with the best way to manage increased demand for support from an aging population.Big expectations and bad assumptions:When it comes down to it,the only factor individuals can actually control is their exp

14、ectations.But whether they are retired or not,investors need to ensure their assumptions about retirement are accurate and their financial expectations are realistic.Saving was already a challenge.And now,as they ponder the prospects of higher prices,longer lives and the potential for reduced retire

15、ment benefits,many individuals doubt whether they will be able to put the pieces together at all.Overall,48%of this group of affluent investors($100,000+in investable assets)worry that retirement wont even be an option,including 38%of those with$1 million or more in assets.So,even as the broad measu

16、res have improved,its clear that individuals are faced with critical challenges,including five key risks that will impact their retirement security in 2023 and well beyond:The results of the 2023 Global Retirement Index do show glimmers of hope for global retirement security.But not every individual

17、 sees the light.Many have looked at the mounting financial,societal,and personal challenges and have simply lost hope.In fact,48%of working individuals included in the survey think the problems are insurmountable and say“its going to take a miracle to be able to retire securely”an increase over the

18、40%who said the same in 2021.Half of those surveyed say they are so concerned that they avoid thinking about retirement altogether.That may be the biggest mistake they can make.The best way to overcome these big challenges,though,is to face them head on.Understand what they mean for society and indi

19、viduals.And set a realistic course forward.That begins with addressing the risk that has been most present in recent years inflation.5Global Retirement Index 2023Inflation:A light at the end of the tunnel?Or an oncoming train?Inflation has long been the wild card in retirement plans and policies.No

20、matter how well the financial strategy for retirement security has been mapped out at the personal or societal level,rising prices have always been an unpredictable variable that could swiftly upset even the best laid plans.Economists,retirement planners,and others have long used inflation at 2%4%an

21、nually as a rule of thumb.Over time,most individuals were likely to accept this estimation be-cause it was their experience.That is,until the 15 years fol-lowing the Global Financial Crisis.During this period,in which monetary and interest rate policy deployed by central banks to manage the economy

22、helped to keep inflation well below traditional averages,many had forgotten just how much a sudden increase in prices could upset their plans.In the three years following the global pandemic,the world has become all too familiar with the impact of inflation.After experiencing big spikes in the cost

23、of everything from oil to groceries to used cars,83%of working investors said recent history shows just how big a threat inflation is to their retirement security a sentiment echoed by 80%of the 998 respondents who have already retired.Overall,inflation ranks as the number-one investment con-cern fo

24、r both retirees(62%)and workers(57%).Similarly,ris-ing everyday prices also come in as the number-one financial fear for both groups(60%of workers and 73%of retirees).The sting is so strong that inflation now comes well ahead of the fears that usually top their list,including taxes and sud-den unexp

25、ected large expenses like worries about losing a furnace in the dead of winter or discovering a failed roof in the middle of a storm.But between the two groups,retirees face a bigger risk from inflation,considering that many are living on a fixed income and the effect of reduced purchasing power may

26、 be amplified as large heating bills and bigger grocery expenses eat into their accumulated assets.TOP INVESTMENT CONCERNS62%43%34%32%23%57%37%37%26%28%InflationRecessionVolatilityWarRising RatesRetiredNot RetiredUS20202023 2010202019802010GermanyEuroJapanUK20202023 IS A WAKE-UP CALL ON INFLATION 4.

27、7%1.7%3.6%Source:Bloomberg4.9%2.1%3.9%4.1%1.3%1.5%4.2%1.3%1.9%1.1%0.4%1.1%USInflation Rate6Global Retirement Index 202373%I60%43%I44%32%I36%34%I27%5%I26%15%I25%Higher everyday costsLarge,unexpected expense Taxes Healthcare costs Job securityCashflowINVESTORS BIGGEST FINANCIAL FEARS IN 2023RetiredNot

28、 RetiredPrices ease but concerns remain high Retirees in some countries have been able to breathe a sigh of relief in recent months as central bank efforts to bring inflation under control have yielded the desired results.In June,inflation in the US had been cut by more than half from 6.5%six months

29、 earlier to just 3%in 2023.The ECB delivered comparable results,taking inflation from 2022s 9.2%to just 5.5%.But not all efforts have been as successful.For example,inflation in the UK has moderated by less than 3%in the same timeframe.Though 7.9%may sound better than the 10.5%rate experienced a yea

30、r earlier,it may not feel any better in consumers wallets.4In contrast,the economic bounce from Chinas much delayed reopening has fizzled,and in July the country entered deflationary territory as prices dropped 0.3%5 year over year,a phenomenon driven largely by lower costs for food and transportati

31、on.The challenge in this scenario is that consumers may see prices dropping and postpone purchases,waiting to see how low prices will drop before buying.With demand decreasing,unemployment has increased in certain sectors.In June unemployment of those aged 1621 had climbed to 21%.6Lessons learned ab

32、out retirement saving Despite the improvements in the West,individuals are still concerned about the impact of inflation on their plans for re-tirement.More than three-quarters of workers(77%)say this recent spike in inflation has shown them why they need to save more for their retirement a sentimen

33、t echoed by 66%of those who are already retired.More than six in ten(63%)workers say it also shows why they should invest more for re-tirement(as do 41%of retirees).They are right to keep inflation top of mind.A recent survey of market strategists in the Natixis Investment Managers family showed tha

34、t 69%rank inflation as a moderate(47%)or high(22%)risk over the next six months.Even with recent improve-ments in mind,central banks have not yet met their target rate of 2%,something this pool of highly experienced investment professionals say may not happen until the second half of 2024(28%)or as

35、late as 2025(38%).7Individuals are well aware of the risks,and 68%of investors worldwide say this painful bout of inflation has highlighted the importance of professional advice.Its also clear that many may need advice as they face another unfamiliar economic scenario,the rising rate environment.INF

36、LATION7Global Retirement Index 2023Rising interest rates:A win many individuals dont understandLow interest rates have been a distinguishing economic factor in the 21st century so far.Over the past 20+years,central bankers have had to rely on rate cuts to stave off potential market and economic coll

37、apse brought on by three successive crises including the 2001 Tech Bubble,the 2008 Global Financial Crisis,and the 2020 Global Pandemic.In fact,not once in the past two decades have rates on 10-year Treasuries surpassed January 2000s 6.7%.In Europe,rates have also been on the decline since January 2

38、000s 5.5%.8 And while this extended run of low rates had created favorable conditions for borrowers,businesses,and investors,low interest rates have wreaked havoc on retirement security.From the individual perspective,low rates made it hard to annuitize a sustainable retirement income stream from li

39、fe-time savings.It also increased investment risk by limiting bonds ability to provide ballast in portfolios.For pension managers,it led to increased liabilities and decreased funding ratios,making their ability to ensure benefits to members uncertain over the long term.So,if there is a silver linin

40、g in the inflation picture,it is the series of rate hikes that central bankers have implemented to counter rapidly rising prices.Since March of 2022,central banks in many regions have been on a run of interest rate hikes that have delivered the highest interest rates in 15 years or more.In the US,th

41、e Fed has implemented 11 hikes in 16 months,taking its target rate from 0.25%to 5.50%.Similarly,the ECB has imple-mented 9 hikes in the same timeframe,taking rates there from-0.50%to 3.75%.9 Others have followed suit.Higher interest rates.Lower pension liabilities.In the long term,higher interest ra

42、tes will help pensions ad-dress the critical shortfall in funding ratios,but not without some short-term pain.Since bankers began the cycle of rate hikes,pensions have taken a hit on asset values.According to OECD,the value of the$48 trillion in pension assets held in its 38 member countries decline

43、d by-15.6%in 2022.10 OECD reports that the losses were due in large part to the large volume of fixed income instruments held by pensions along with losses in equity markets and inflation.But pensions may find that the long-term benefits of higher interest rates outweigh short-term losses.In essence

44、,higher rates have helped to improve funded ratios,or the ratio of assets to liabilities,from two different angles.First,higher market yields mean a higher discount rate may be applied to future liabilities,lowering their present value;and second,return estimates are likely higher as pensions can no

45、w invest in bonds that are now paying significantly higher yields than what weve seen over the past decade.Its these assumptions that determine if they will have the cash available to pay out all that is owed to members.Individuals will also find some bad in rising rates.Most notably,rising rates me

46、an higher borrowing costs,especially on big ticket items like homes and automobiles,though that drag has yet to be felt in housing markets.It can also mean that their savings take a short-term hit as they did in 2022,when for the first time in 45 years stocks and bonds had losing years.But retirees

47、should be particularly happy with higher rates,as higher rates mean more favorable conditions for generating income off their savings.$8.50US7/31/20237/31/202012/31/20081/31/2000GermanyEuroAustraliaUKCENTRAL BANKS HAVE REVERSED 15 YEARS OF LOW RATES3.96%0.53%2.21%6.67%4.31%0.10%3.02%5.74%2.49%-0.52%

48、2.95%5.54%2.49%-0.52%2.95%5.54%4.06%0.82%3.99%7.23%Source:BloombergNETHERLANDS UNITED KINGDOMLUXEMBOURG POLANDUNITED STATESWHERE THE LARGEST PENSION LOSSES OCCURRED IN 2022(OECD MEMBERS)10-20.7%-20.2%-17.2%-16.5%-15.0%8Global Retirement Index 2023What do rising rates mean for bond portfolios?Unfortu

49、nately,few understand what rising rates mean for their investments.The 2023 edition of the Natixis Global Survey of Individual Investors set out to test bond knowledge among 8,550 affluent investors in 23 countries.The survey presented them with a simple quiz asking them to identify what happens to

50、a bond portfolio when interest rates rise.Respondents were given five choices and asked to choose all that apply:a)The price of the bonds increases.b)The price of the bonds decreases.c)The income currently received from the bonds increases.d)The future income from bonds increases.e)I dont know.There

51、 are two correct choices in this example:(b)The price of bonds in the portfolio decreases,because you can now buy bonds at a higher interest rate;(d)Future income from bonds increases,as fixed-income allocations can now be invested at a higher rate.Only 2%of investors overall knew both correct answe

52、rs.For partial credit,27%knew prices would decrease.Only 15%recognized that future income potential would increase.Worse yet,while only 2%of retirees knew both answers,only 12%knew about the higher income potential.At a time when they should be concerned with wringing as much income out of their inv

53、estments as possible,48%of retirees simply answered,“I dont know.”This lack of knowledge may be one of the key reasons that despite the highest rates in 15 years,only 22%of retirees report that rising rates have led them to add bonds to their portfolios.There will be a lot riding on this lesson for

54、future retirees as they contemplate the potential for lower public retirement benefit payments as a result of growing public debt.At a time when they should be concerned with wringing as much income out of their investments as possible,48%of retirees simply answered,“I dont know.”“I dont know”Passed

55、 the quizTaiwanHong KongMexicoChinaJapanGermanyUSCanadaFranceSingaporeArgentina/UruguaySpainSwitzerlandThailandKoreaColombia/PeruUKChileItalyNetherlandsAustralia18%8%21%6%33%31%37%51%40%22%28%28%24%12%17%28%54%31%35%33%64%5%4%3%3%3%3%3%2%2%2%2%2%2%2%2%1%1%1%1%1%1%RISING RATESBONDS ARE MATH.MATH IS H

56、ARD.9Global Retirement Index 2023Public debt:Somebody will eventually have to pick up the tab Another outfall of managing economies through three different crises in 20 years is that policy makers have had to issue sub-stantial levels of public debt to fund recovery programs.In fact,public debt,as m

57、easured as a percentage of GDP,has been growing consistently across OECD countries since the turn of the century.Over the past 20+years,public debt levels across the developed world have been accelerating.Consider this:In 2010,OECD re-ported the average debt to GDP ratio of its 38 member countries s

58、tood at 69.2%.Even as the financial crisis eased in many regions,many countries struggled with sovereign debt crises like those seen in Greece,Italy,Spain,and Portugal.By 2019,the average debt to GDP ratio among OECD countries had reached 78.6%.Then came Covid and the average ratio increased by almo

59、st 20%to 93.3%during the pandemic.While that was the average,some countries saw even greater increases.In Canada,the debt to GDP ratio jumped 31%from 111.9%to 146.1%.In the UK,it jumped 27%from 118.8%to 151.2%.For some it added to an already large bill as Japan saw its debt climb from 234.8%to 257%o

60、f GDP and Greece saw it grow from 200.8%to 236.8%.A momentary lapse in debt pressure Interestingly enough,the same inflation spike that hurt consum-ers actually helped alleviate public debt concerns in the short term.The unique combination of higher prices,higher wages,and economic growth boosted pr

61、ojections for the tax revenues need-ed to make good on debt obligations.As a result,many countries saw their debt to GDP ratio decline significantly in 2022.In the US,public debt declined from 159.9%of GDP to 144%.In Australia,it declined from 2020s high water mark of 92.1%to 70.4%.And in the Nether

62、lands,it declined from 70.2 to 54.3%.11While it looks good on paper,its important to remember that the debt is still there and could still get larger.Individuals intuitively understand the dilemma this creates for policy makers.Overall,more than three-quarters(77%)of those investors who are still wo

63、rking worry that high levels of public debt in their country will result in reduced retirement benefits down the road.The same is true for 73%of the retirees included in the survey.When it comes down to it,individuals are concerned about how it will impact their plans for funding retirement.Even amo

64、ng this group of affluent investors,58%say it will be difficult to make ends meet in retirement without their public benefits.And this includes more than half(53%)of those with$1 million or more in assets.Public debt isnt the sole reason to be concerned about the future of benefits.In fact,demograph

65、ics have set off an even louder alarm as developed countries begin to feel the impact of aging populations and declining birth rates.0%50%100%150%200%250%300%38.4%41.3%77.0%9 92.1%70.4%2000 201020192020 2022 105.8%107.4%111.9%146.1%113.3%72.4%101.0%123.1%145.9%116.9%112.6%130.4%200.8%236.8%191.5%118

66、.4%124.3%154.2%183.1%140.8%204.4%234.8%257.0%254.6%49.4%89.2%118.8%151.2%103.6%72.1%125.3%136.1%159.9%144.0%AustraliaCanadaFranceGreeceItalyJapanUKUSSource:OECD Public Debt as a Percentage of GDP10Global Retirement Index 2023Demographics:The Silver Tsunami makes landfallPublic and private pension ma

67、nagers have known for a long while that economics are only one side of bad math behind retirement security.On the other side of the equation is a demo-graphic storm that is poised to upset traditional funding models in the developed world.At heart of the matter is a confluence of three factors that

68、have long-term implications for retirement.First,the world population is growing rapidly.In just 70 years,the number of people walking the planet has tripled from just 2.54 billion in 1950 to 7.79 billion in 2020.12 In simplest terms,the combined population of todays two largest countries,India(1.4B

69、)and China(1.4B),accounts for more people than the total global population at the midpoint of the 20th century.13 In just 30 years,it is estimated that the global population will approach 10 billion people(9.74 B).Second,people are living longer.According to OECD data,life expectancy at age 65 has i

70、ncreased dramatically.For example,the life expectancy for women age 65 and older in Australia has increased by more than 40%in 60 years.In 1960,women there could plan on living 15.6 years beyond 65;in 2022,they can plan on living 23 years.Similarly,the average for men has increased by almost 8 years

71、 from 12.5 to 20.3 years.Women and men in France,Germany,Japan,Mexico,the UK,the US and other countries have also seen life expectancy at 65 increase.This in itself presents a distinct financial planning challenge for women.14 In fact,two-thirds of the 8,550 people sur-veyed(67%)believe women are at

72、 a disadvantage when it comes to retirement savings due to longer lifespans and their role as care givers,which can frequently take them out of the workforce for extended periods of time.The problem is even more obvious to those who have retired,among whom 73%see the disadvantage.A third factor at p

73、lay is slowing birth rates in developed countries.According to OECD,countries need a fertility rate of 2.1 children per woman of child-bearing age to maintain a stable population.In 1960,the population in many developed countries was still growing.OECD countries shared an average fertility rate of 3

74、.3.The US was emblematic of that growth,as at the tail end of the postwar baby boom,the fertility rate was above average at 3.7.By 2020,the OECD average had dropped to just 1.56,while it came in at 1.64 in the US.15But two countries underscore just how much of an impact a low birth rate can have.Bot

75、h Japan(2.0)and Italy(2.4)already had below average birthrates in 1960.By 2022,those rates had dropped to 1.33 and 1.24 respectively.16 While Japan is most often cited as the example of the challenges presented by low birth rates and aging populations,recent experience in Italy serves to illustrate

76、the challenge.Recognizing the country faces key demographic risks,the Italian parliament approved the“Pact for the Third Age”in January.A package of sweeping health and social reforms aimed at Italian seniors,the reform introduces a pilot program that brings to-gether most of the civil organizations

77、 involved in the assistance and protection of seniors who are no longer self-sufficient and will replace the current national monthly allowance benefit.The rationale for streamlining service is clear as in 2021,those over age 65 accounted for 23.7%of the Italian population,compared to 17.6%across OE

78、CD countries.Only in Japan did this group represent a larger share of population at 28.9%.17In just 70 years,the number of people walking the planet has tripled.11Global Retirement Index 2023The math behind retirement benefits no longer adds up When it comes down to it,public benefits are built on a

79、 simple premise:You need more people paying into the system than there are people taking benefits out.The most direct indicator of this is the old-age dependency ratio,which measures the number of people aged 65 or older per 100 people of working age.Since the year 2000,this ratio has been rising ra

80、pidly across the developed world,a phenomenon that is still gaining steam.At the start of the century,the average old-age dependency ratio across OECD countries came in at 22.5.As of this year the ratio has increased to 33.1 a 47%increase in 23 years.The places where it has accelerated fastest inclu

81、de Japan,where it has nearly doubled from 27.3 to 54.5,Germany(26.5 to 41.4)and Italy(29.2 to 40.9).But it is in the next 27 years that countries will see the biggest shift.Japans old-age dependency ratio is expected to reach 80.7 in 2050,and in Italy it will hit 74.4.But the most surprising country

82、 in this time frame is likely to be Spain,where old-age dependency will have grown from 26.9 in 2000 to 34.5 in 2023 to 78.4 in 2050.18An aging population accelerates the shift from DB to DC plans While not facing the same accelerated aging problem,the Netherlands is grappling with the implications

83、an old-age dependency ratio of 37.4 has for its population today.Earlier this year,the Dutch parliament voted in sweeping reforms to its retirement system.19Like most countries,the Netherlands is addressing the challenge in part by raising its national retirement age from todays 66 and four months t

84、o 67 and three months by 2028.But similar policy moves are not always welcomed with open arms.Such was the case in France where the decision to raise the retirement age from 62 to 64 resulted in over one million residents taking to the streets in a series of protests between January and June 2023.Mo

85、st notable among the changes in the Netherlands is a new emphasis on employer-paid defined contribution plans over de-fined benefit pensions.Set to take effect in 2025,the move will put more of the onus for saving on individuals,something Dutch investors recognize as 72%say it is increasingly their

86、responsibility to fund retirement on their own a sentiment shared by 81%of individuals worldwide.All this at a time when 78%of workers surveyed believe more employers should offer defined benefit plans rather than defined contribution plans.But most individuals do recognize the inherent problem,as 7

87、2%globally say that government retirement pro-grams do not take into account that people are living longer.Knowing the responsibility for retirement funding is landing on them means individuals will need to be clear in their retirement planning and investment assumptions.But data suggest few are.DEM

88、OGRAPHICS12Global Retirement Index 202347%42%31%29%37%I wont have enough money to enjoy my retirementInflation is killing my dreams of retirementIll never save enough to retire I will be forced to return to work after retiringIm worried government benefits will be cut INVESTORS BIGGEST FEARS ABOUT R

89、ETIREMENTPlanning assumptions:We have met the enemy,and it is usLonger lifespans,the potential for declining benefits,and rising costs are just three among a litany of risks that need to be con-sidered in 21st century retirement planning.If individuals are to live up to the responsibility they feel

90、for funding retirement on their own,they will need to step back and analyze where they are today,evaluate how long they have until retirement,and determine what it will take to get there.Unfortunately,many are not starting out with realistic assumptions.As a starting point,many underestimate whats n

91、eeded to ensure a secure retirement.Overall,individuals included in the Natixis investor survey are starting with a fair grasp of how long they could possibly live in retirement.Those who are still working think their retirement will last about 20 years.But they would do better by listening to the a

92、dvice of those who are already retired.Retirees say they anticipate living 25 years after work.It may not sound like a big difference,but those five extra years could require significantly more savings.Its especially true when considering that as people age,their healthcare costs could in-crease and

93、 the odds of their needing long-term care increase.But lifespans,which currently stand at 23 years for women at 65 and 20.5 for men in OECD countries,are growing.Those planning on 20 years may want to reconsider how long they will need to fund retirement particularly when most plan to retire at 61 y

94、ears old,creating demand for four more years of funding.Given that scenario,even 25 years may be overly optimistic for some individuals.This should be of significant concern,since the median asset level of retirees in the survey group comes in at$625,000 with about$250,000 in retirement accounts.Con

95、sidering that they also claim a median household income of$150,000,many retir-ees may not have the cash reserves to carry them the distance.Overconfidence:another retirement risk By way of example,a separate survey of defined contribution plan participants in the US conducted in Q1 2023 shows a crit

96、ical gap between their estimations on retirement and their savings goals.Boomers(age 59+)appear to come closest,as they estimate they will need$1.1 million to fund retirement.Unfortunately,this group has only saved a median of$170,000.However,those who have not yet left the work force recognize they

97、 need more time and say they will retire at 70.Generation Xers(ages 4358)anticipate needing$1.3 million and living 22 years after retiring at 65.Their saving picture is worse,as they have only saved a median of$81,000.Millennials may pose the biggest challenge,as they think it will only require$891,

98、000 to fund retirement while they believe they will live another 25 years after retiring at 60.20Globally,many individuals already recognize that back-of-the-napkin estimates are likely off,as six in ten believe they will have to work longer than theyve planned.That may seem like a simple answer to

99、not saving enough.But what if you cant work as long as youd planned?Its a question that 46%of working individuals worry about.They have good reason for concern.Many times,retirement isnt a choice.A late career layoff,health issues,or family care issues could all take individuals out of the workforce

100、 before they hit their retirement funding targets.77.9%13Global Retirement Index 2023From saving to investing for retirement Saving alone will not get most people to their retirement goal.Savings accounts and certificates of deposit may have broken free from a decade-long run of low interest rates,b

101、ut it still isnt enough.Investing in equities has traditionally pro-vided an opportunity for inflation-beating returns.But inves-tors have grown accustomed to the big double-digit returns theyve experienced in the past decade,and their recency bias has set them up with unrealistic expectations.Marke

102、ts across the globe have rallied for more than a decade,delivering returns well above their historic norms.Even with disastrous 2022 factored into the equation,the S&P 500 delivered average annual total return of 13.99%between 2012 and July 2023,a substantial gain over the 8.93%it aver-aged between

103、1991 and 2011.The EuroStoxx also delivered impressive results,delivering an average of 9.77%compared to the 6.68%it averaged between 1991 and 2011.And the Nikkei delivered the biggest turnaround,delivering 14.69%compared to the-3.98%loss it had previously averaged.21It adds up to unrealistic expecta

104、tions for investors.On aver-age,investors around the globe say they expect their invest-ment to deliver 12.8%above inflation over the long term a figure that has barely moderated after 2022s deep losses.Even retirees say they expect returns of 10.1%above infla-tion.Globally,financial advisors say it

105、s more realistic for any investor to expect 9%above inflation.But the global number doesnt tell the whole story.The gap between whats expected and whats realistic is greatest in the US,where it is 123%.Investors say they expect 15.6%,but advisors call 7%realistic.Australians have an 81%expectations

106、gap between investors expectations of 12.5%above inflation and advisors 6.9%.In Hong Kong(12.4%vs.7.6%)and Canada(10.6%vs.6.5%)the gap is 63%.In Japan(13.6%vs.8.7%)its 56%,and in Italy(9.6%vs.6.3%)its 52%.Despite their optimistic outlook,many investors may find their high expectations for investment

107、 returns do not jibe with their tolerance for taking on risk.Overall,59%globally say they are comfortable taking on risk in order to get ahead.Theyll need to be comfortable.Traditionally,double-digit returns have meant being exposed to higher levels of volatility and higher potential losses.True,the

108、se were not issues for much of the past decade,but 2022 was a severe reminder of just how fast fortunes can turn.Investors may want to make a realistic assessment of their ability to take on risk,especially when 74%say they would take safety over investment performance if forced to choose.Retirees m

109、ay want to take an even deeper look at their risk concerns.While they want returns of 10.1%above inflation,just 31%are willing to take risk to get ahead and 84%prefer safety over performance.One down year like last years-19%loss from the S&P 50022 could substantially undermine their ability to maint

110、ain a sustainable stream of retirement income over the long term.Financial professionalsrealistic expectations(2022)*RETIREES long-term return expectationsExpectations Gap12%43%64%32%70%74%13%20%0%7%-3%20%-24%1%-2%1%-2%9.0%7.0%6.9%7.6%6.5%8.7%6.3%7.0%7.6%6.9%6.6%6.2%14.0%14.5%14.2%10.1%10.0%11.3%10.

111、0%11.1%15.1%7.1%8.4%7.6%7.4%6.4%7.4%10.6%14.7%13.9%Financial professionalsrealistic expectations(2022)*INVESTORS long-term return expectationsEXPECTATIONS GAP BYCOUNTRY*Natixis Investment Managers,Global Survey of Financial Professionals conducted by CoreData Research in March and April 2022.Survey

112、included 2,700 respondents in 16 countries.Expectations GapGlobalUSAustraliaHong KongCanadaJapanItalyGermanySpainSwitzerlandFranceUKMexicoChileSingapore42%123%81%63%63%56%52%44%39%39%35%31%5%4%2%9.0%7.0%6.9%7.6%6.5%8.7%6.3%7.0%7.6%6.9%6.6%6.2%14.0%14.5%14.2%12.8%15.6%12.5%12.4%10.6%13.6%9.6%10.1%10.

113、6%9.6%8.9%8.1%14.7%15.1%14.5%PLANNING ASSUMPTIONS14Global Retirement Index 2023Retirement:Planning for an uncertain futureRetirement plans have to incorporate a wide range of variables,most of which are well beyond what individuals can control themselves.Fortunately,more than half(53%)of the 998 ret

114、irees surveyed in 23 countries have good news to share.They say theyve saved enough money that they can have fun in retirement.Unfortunately,it leaves 47%who arent having fun,including the 31%who say finances are tighter than they expected and 10%who say they are barely hanging on.An-other 3%say the

115、 struggle has been so hard that theyve had to find a job in order to make ends meet.(3%replied“other.”)The responsibility for funding retirement may be falling on the shoulders of individuals and they need to be realistic about their expectations,but that doesnt mean they dont need help.Policymakers

116、 and employers both play a critical role in helping them succeed.Policymakers:Increase the odds of savings success There is no way of getting around the fact that the population across the developed world is getting older.Public retirement policy will need to continue supporting retirees along their

117、 journey and help remove the barriers to success.There will be tradeoffs.As individuals in Australia(age 67)and France(age 62)learned this year,increasing minimum retirement ages for public retirement benefits is a key policy tool.But policymakers also must work to ensure that individ-uals can maxim

118、ize savings in their working years.This means maximizing engagement by providing favorable tax treatment on retirement savings to drive participation and engagement rates,and offering incentives for employers to provide workplace savings plans in the first place.In the US,the SECURE 2.0 act signed i

119、nto effect at the end of 2022 made significant strides in getting people on the path to save with provisions for auto-enrollment,student loan matches,emergency savings,and increased catch-up contribution limits for workers over age 50.Similarly,the US Department of Labors Prudence and Loyalty regula

120、tion allows plan sponsors to consider participant prefer-ences in building out retirement plan investment options.For example,employers may offer sustainable investments as plan options a choice 74%of investors globally say would get them to participate in a company plan or increase their contributi

121、ons.In Australia,regulators have been working to strengthen the countrys renowned Superannuation savings scheme.Within these priorities the government is currently focused on en-shrining the Purpose of Super by more clearly defining its objectives and enhancing member experience and the quality of a

122、dvice.In addition,the mandatory contribution rate will increase to 12%by 2026.Though not part of the legislation,Superannuation funds are also being encouraged to develop more innovative products they offer members when they enter retirement,ultimately help-ing them to annuitize savings and manage i

123、ncome in retirement.There are still more considerations aimed at improving investment outcomes for plan participants.Advice is a partic-ular concern for individuals.Even as 60%of those surveyed say they fully understand the investment options in their retirement plan,two-thirds say they need profess

124、ional help in making selections for their portfolio.IMPLICATIONS15Global Retirement Index 2023Employers:Increase the odds of savings success Whether its through defined benefit pensions or defined contribution savings plans,employers are a linchpin in retirement funding.In fact,82%of individuals sur

125、veyed believe companies should be responsible for helping employees achieve retirement security.But in getting employees to retirement success,the devil is in the details.Employers should put a close eye toward the design of their workplace retirement plan to ensure workers have maximum opportunity.

126、Its critical to leverage the all the opportunities to improve participation and engagement.Auto-enrollment is quickly becoming an accepted standard across the developed world.It can be complemented with auto-escalation features that allow employees to increase contributions on an annual basis.One of

127、 the most important features is the company match.Given todays tight labor market when employers are looking for an edge that helps them attract and retain talent,they should recognize that 77%of individuals worldwide said they would be more likely to work for a company that offers a match.Individua

128、ls:Set realistic goals Retirement planning can present significant challenges,not the least of which is answering the basic questions:“How much do I need?”and“How long is it going to have to last?”Its easy to re-spond with“As much as you can”and“As long as it can.”But giv-en the state of retirement

129、sentiment in 2023,this is not the time or place for glib answers.Individuals need real,practical advice.Working with a professional is often an important step in taking retirement planning from emotional to empirical by:But beyond the plan itself,investment professionals work with individuals for th

130、e long term to provide them with real-time feed-back on what market movements mean for them and regular updates on how they are progressing.Even when working with professionals,individuals still need to step up and engage in their retirement savings and take note of key features and benefits that wi

131、ll help increase their odds of success.Because even the glib answer isnt too far off the mark,knowing all the risks,it is important to realize retirement can last a long time and it will take a lot of money.So saving as much as you can and making it last as long as it can is at least a rational resp

132、onse to the retirement funding problem.IMPLICATIONSDefining the parameters for how long retirement could lastEstablishing goals:how much is needed to support a given lifestyleSetting realistic expectations:investments based on a clearer under-standing of risk77%of individuals worldwide said they wou

133、ld be more likely to work for a company that offers a match.Additional Information About the Survey:Natixis Investment Managers,Global Survey of Individual Investors conducted by CoreData Research in March and April 2023.Survey included 8,550 individual investors in 23 countries.1.Bloomberg2.OECD-ge

134、neral government debt 2011 vs.20083.OECD governments borrowed USD 18 trillion from the markets in 2020,equal to almost 29%of GDP.https:/www.oecd.org/daf/fin/public-debt/Sovereign-Borrowing-Outlook-in-OECD-Countries-2021.pdf4.Bloomberg5.National Bureau of Statistics of China.(August 9,2023).Monthly i

135、nflation rate in China from July 2021 to July 2023 Graph.In Statista.Retrieved August 21,2023,from https:/ Unemployment Hits High in China.Retrieved August 21,2023,from https:/ 2023 Natixis Strategist Outlook is based on responses from 32 experts including 26 representatives from 11 affiliated asset

136、 managers,4 representatives from Natixis Investment Managers Solutions,and 2 representatives from Natixis Corporate&Investment Banking.8.Bloomberg9.Bloomberg10.https:/www.oecd.org/daf/fin/private-pensions/PMF-2023-Preliminary-2022-Data.pdf11.OECD(2023),General government debt(indicator).doi:10.1787/

137、a0528cc2-en(Accessed on 21 August 2023).https:/data.oecd.org/gga/general-government-debt.htm12.https:/ on 08/22/2023,https:/www.worlddata.info/the-largest-countries.php14.OECD(2023),Life expectancy at 65(indicator).doi:10.1787/0e9a3f00-en(Accessed on 21 August 2023)15.OECD(2023),Fertility rates(indi

138、cator).doi:10.1787/8272fb01-en(Accessed on 21 August 2023)16.OECD(2023),Fertility rates(indicator).doi:10.1787/8272fb01-en(Accessed on 21 August 2023)17.OECD(2023),Elderly population(indicator).doi:10.1787/8d805ea1-en(Accessed on 21 August 2023)18.OECD(2023),Old-age dependency ratio(indicator).doi:1

139、0.1787/e0255c98-en(Accessed on 21 August 2023)19.OECD(2023),Old-age dependency ratio(indicator).doi:10.1787/e0255c98-en(Accessed on 21 August 2023)20.Natixis Investment Managers,Survey of US Defined Contribution Plan Participants conducted by CoreData Research,January and February 2023.Survey includ

140、ed 736 US workers,587 being plan participants and 149 being non-participants.Of the 736 respon-dents,362 were Millennials(age 2742),166 were Gen X(age 4358)and 208 were Baby Boomers(age 59 and above).21.Bloomberg22.BloombergThe Global Retirement Index(GRI)is a multi-dimensional index developed by Na

141、tixis Investment Managers and CoreData Research to examine the factors that drive retirement security and to provide a comparison tool for best practices in retirement policy.As the GRI continues to run each year,it is our hope it will be possible to discern ongoing trends in,for instance,the qualit

142、y of a nations financial services sector,thereby identifying those variables that can be best managed to ensure a more secure retirement.The country rankings are intended to examine key retirement factors and a discussion of best practices.This is the 12th year Natixis and CoreData have produced the

143、 GRI as a guide to the changing decisions facing retirees as they focus on their needs and goals for the future,and where and how to most efficiently preserve wealth while enjoying retirement.The index includes International Monetary Fund(IMF)advanced economies,members of the Organization for Econom

144、ic 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.See page 75:Appendix B for the full list of countries.Global Retir

145、ementIndex 202381%and above41%-50%40%and below51%-60%61%-70%71%-80%OVERALL GRI SCORE(%)Global Retirement Index 20233FrameworkThe index incorporates 18 performance indicators,grouped into four thematic sub-indices,which have been calculated on the basis of reliable data from a range of international

146、organizations and academic sources.It takes into account the particular characteristics of the older demographic retiree group in order to assess and compare the level of retirement security in different countries around the world.The four thematic indices cover key aspects for welfare in retirement

147、:the material means to live comfortably in retirement;access to quality financial services to help preserve savings value and maximize income;access to quality health services;and a clean and safe environment.The sub-indices provide insight into which particular characteristics are driving an improv

148、ement or worsening each countrys position.Data has been tracked consistently to provide a basis for year-over-year comparison.Life ExpectancyHealth Expenditure per CapitaNon-Insured Health ExpenditureHealthOld-Age DependencyBank Non-Performing LoansInflationInterest RatesTax PressureGovernanceGovern

149、ment IndebtednessFinances in RetirementIncome EqualityIncome per CapitaUnemploymentMaterial WellbeingHappinessAir QualityWater and SanitationBiodiversity and HabitatEnvironmental FactorsQuality of LifeGlobal Retirement Index 20234The Best PerformersNorway keeps hold of its first-place title for the

150、second consecutive year,boasting an overall score of 83%.Switzerland,Iceland,and Ireland all retain the same rankings as 2022,underscoring the consistency of these high achievers.In addition,Luxembourg,the Netherlands,Australia,New Zealand,and Denmark all remain in the top ten this year,with ranking

151、s of fifth,sixth,seventh,eighth,and tenth,respectively.And while the Czech Republic drops out of the top ten,Germany moves into the top ten with a score of 76%,replacing Denmark in ninth.Countries in the top ten overall tend to be good allrounders that perform strongly across all sub-indices.However

152、,Norway,Switzerland,and Luxembourg are the only nations to achieve the distinction of ranking in the top ten in each of the four sub-indices.Iceland,Ireland,and the Netherlands finish in the best ten in three out of four sub-indices.The remaining countries in this elite group place in the top ten fo

153、r at least one sub-index.This year,the best performers have more consistent rankings across all sub-indices.Among the overall top ten countries,there are seven top ten finishes for Material Wellbeing,Health and Quality of Life,and six for Finances in Retirement.This contrasts with previous years,whe

154、n some of the best performers excelled in Health and Quality of Life but finished with mid-tier or bottom-tier rankings in Material Wellbeing and Finances.While this remains the case for some countries such as Denmark,others have managed to turnaround weak sub-index performances to ultimately improv

155、e their overall rankings.The Netherlands,for example,leaps up the Finances in Retirement sub-index rankings from 26th Top 10 Countries in 2023 GRI202320222013Ranking changeNorway10083%81%87%Iceland301181%79%76%Luxembourg5479%75%81%Australia7078%75%79%Germany9576%72%78%Switzerland20082%80%84%Ireland4

156、02180%76%70%Netherlands6379%75%76%New Zealand8477%75%77%Denmark10176%74%78%222221Global Retirement Index 20235to 16th this year.There is a similar story for Luxembourg,which jumps from 21st in Finances last year to 5th,and in the process climbs to 5th in the overall GRI.Standout performer Norway sta

157、ys at the top of the GRI and keeps the same rankings as last year in the Health(1st)and Quality of Life(4th)sub-indices.A rise up the rankings in Material Wellbeing(2nd to 1st)is balanced by a decline in Finances in Retirement(8th to 9th).Switzerland remains second this year with a slightly higher s

158、core than 2022.Its rankings are relatively consistent with last year,with the exception of Material Wellbeing,where it surges up the sub-index from 14th to 6th.It also takes the top spot for the Finances in Retirement sub-index,moving up from second in 2022.Iceland also maintains its third-place ran

159、king after dropping two places in 2021.It achieves top five finishes in three sub-indices,staging gains in Health(4th),Material Wellbeing(3rd),and Quality of Life(5th).But it drops out of the top ten in Finances in Retirement to 12th.Luxembourg and the Netherlands both climb two places in the rankin

160、gs to 5th and 6th respectively,fueled by strong performances across the four sub-indices.In doing so,they outpace Australia which drops out of the top five to 7th,despite recording a slightly better overall score.New Zealand also slips two places this year,from 6th to 8th.Germany secures a spot in t

161、he top ten in this years GRI,rising from 11th to 9th.This comes on the back of strong improvements in the Finances in Retirement and Material Wellbeing sub-indices.And Denmark completes the GRI top ten,edging down from 9th last year.The drop in ranking is attributable to a sharp fall in the Material

162、 Wellbeing sub-index,where Denmark slides from 6th to 12th.More positively,Denmark stages an improvement in Health and Finances in Retirement and stays in second place in Quality of Life.Global Retirement Index 20236Performanceby Sub-IndexThe performance by sub-index section analyzes GRI performance

163、 on an indicator by indicator basis.Focusing on sub-index performance highlights the strengths of some countries indicators and illuminates good practices for certain countries while highlighting needed areas of improvement for others.Global Retirement Index 20237Finances in Retirement IndexSwitzerl

164、and,second in the GRI overall,takes the top spot in the Finances in Retirement sub-index.The sub-index is based on performance across seven indicators:old-age dependency,bank nonperforming loans,inflation,interest rates,tax pressure,government indebtedness,and governance.Switzerlands top ranking is

165、mainly driven by an improvement in the tax pressure indicator,along with strong performances in the inflation(2nd),governance(4th),bank nonperforming loans(7th),and government indebtedness(9th)indicators.South Korea places in 2nd,increasing from closing out the top three for this sub-index in 2022.S

166、outh Koreas rise in rank is powered by strong performances in the bank nonperforming loans(1st)and inflation(5th)indicators.Australia also finishes with a higher ranking,moving to 3rd from 4th in 2022.Meanwhile Singapore,which had occupied the sub-index top spot since 2019,drops to 4th.Singapores de

167、cline follows decreases in several indicators including old-age dependency,bank nonperforming loans,inflation,interest rates,and government indebtedness.Luxembourg boasts the most dramatic improvement in this group,leaping sixteen spots to 5th.This is mainly attributable to improvements in the inter

168、est rate and tax pressure indicators.Completing the top ten countries for this sub-index are Ireland,Chile,New Zealand,Norway,and Canada.Ireland rises one spot to 6th from 7th,registering increases in the tax pressure and bank nonperforming loans indicators.Chile falls out of the top five,slipping t

169、wo places to 7th.New Zealand also falls two spots to 8th from 6th,with a sharp decrease in the government indebtedness indicator.Norway slips in ranking from 8th to 9th,while Canada jumps from 12th to 10th,with increases in the tax pressure and bank nonperforming loans indicators.After the top ten,t

170、he next five countries in the Finances in Retirement sub-index are Israel,Iceland,the United States,Estonia,and the United Kingdom.Israel increases its score in the Finances in Retirement sub-index by two-percentage points,gaining two spots to 11th from 13th.While Iceland maintains the same score in

171、 this sub-index as the previous year,its ranking slips two spots to 12th.The United States also experiences the same phenomena,losing two spots while maintaining the same score as 2022.Estonia falls out of the top ten to 14th owing to a substantial decrease in the inflation indicator.The United King

172、dom jumps fourteen places to 16th following improvements in the interest rate,tax pressure,and government indebtedness indicators.The countries occupying 16th to 20th place in the Finances in Retirement sub-index are the Netherlands,Lithuania,Sweden,Malta,and Germany.The Netherlands jumps ten places

173、 to 16th,posting a ten-percentage point increase since last year.Also registering gains are Lithuania and Sweden,with both Top 10Countries inFinance inRetirementSub-Index202320222013RankingchangeSwitzerland274%70%75%1Korea Rep673%65%73%2Australia1172%71%73%3Singapore676%67%73%4Luxembourg59%68%73%5Ir

174、eland70%60%73%6Chile3121672%73%72%7New Zealand271%69%72%8Norway7169%74%70%9Canada267%67%69%10113151184Global Retirement Index 20238increase their overall score by eleven and ten percentage points,respectively.Malta slips three rankings despite increasing its overall score in the Finances in Retireme

175、nt sub-index.Germany leaps ten places to 20th,closing out the top twenty countries for this sub-index.Rounding out the top 25 countries for the Finances in Retirement sub-index are China,Finland,the Czech Republic,Mexico,and India.China slides down the rankings from 14th to 21st this year,while Finl

176、and climbs up six spots into the top 25.The Czech Republic also falls eight places to 23rd,down from 15th in 2022.Mexico also registers a decrease in ranking to 24th,despite a slight increase of one-percentage point.India closes out the top 25 countries for this sub-index,sliding down seven places f

177、rom 18th in the previous year.RankingScore202320222013202320222013SwitzerlandKorea RepAustraliaSingaporeLuxembourgIrelandChileNew ZealandNorwayCanadaIsraelIcelandUnited StatesEstoniaUnited KingdomNetherlandsLithuaniaSwedenMaltaGermanyChinaFinlandCzech RepublicMexicoIndia12345678910111213141516171819

178、202122232425234121756812131011929263127163014281519184937625251820371214343529132118331116104475%73%73%73%73%73%72%72%70%69%68%68%67%67%66%66%65%65%65%64%64%63%63%63%63%74%73%72%76%59%70%72%71%69%67%66%68%67%68%55%56%54%56%63%55%65%55%64%62%62%70%65%71%67%68%60%73%69%74%67%60%54%63%62%56%55%58%63%60

179、%61%56%65%61%65%39%61%-70%71%-80%91%-100%81%-90%Color Scale0%-60%Top 25 Countriesin Finances in Retirement Sub-IndexGlobal Retirement Index 20239The superannuation fund system in Australia consistently ranks among the best pension systems globally,currently managing over$3.4 trillion in assets for i

180、ts members,while Australia has ranked within the top 10 countries in the Global Retirement Index each year since its inception in 2012.Australia has the third-largest ratio of assets to GDP among G20 countries,with this rate significantly outpacing its regional neighbors.The system has driven strong

181、 member outcomes since the introduction of the Superannuation Guarantee in 1992.Despite the success of the system overall,few nations have implemented similar pension systems in their own countries.Since 2021 a series of changes have been pushed through,with the aim of further enhancing retirement s

182、ecurity and driving better financial outcomes for members.Could these changes create additional proof points that lead other countries particularly developing nations to look to Australia as a pension system to model their own structures after?The hallmark of the superannuation system is the Superan

183、nuation Guarantee,which requires most employers to contribute a percentage of each employees income to their super account(alongside any voluntary contributions on the part of the individual).In order to maintain financial security for future retirees,the compulsory contribution rate has experienced

184、 a steady increase over recent years.Further scheduled increases are on the horizon which will bring the current 10.5%contribution rate up to 12%by 2025.https:/ https:/www.superannuation.asn.au/policy/12-superannuation-guaranteeThe Australian superannuation system a model for other nations?Spotlight

185、Global Retirement Index 202310One key trend in the super fund industry is the recent consolidation that has stemmed from multiple strategies implemented in the past few years by the Australian Prudential Regulation Authority(APRA)and the Your Future,Your Super Act.The softer of these strategies cent

186、ered around greater transparency for members regarding fund performance.The introduction of“heat maps”allowed members to evaluate factors like their super funds investment performance,fees,and sustainability strategies.An accompanying online comparison tool facilitated members to see how their curre

187、nt fund benchmarks against others,and more importantly functioned to encourage members to shift their accounts to the better performing,and often larger,super funds.The stricter APRA mandate is the Annual Performance Test,which evaluates each super funds performance against a benchmark of their peer

188、s.Failure of the test requires a fund to notify its members of the result,while failure in consecutive years results in the fund being restricted from accepting new members.In practice,failing the Annual Performance Test can often lead to a mass exodus of members as they seek out better performing f

189、unds,consolidating the industry further around its top performers and often largest funds.One potential drawback to the APRA and Your Future,Your Super regulations is the motivation for funds to hug the benchmark and take an approach that is more risk-averse than they would otherwise be.One casualty

190、 of this dynamic arises in regard to sustainable investing,with an eye towards Australias goal of net-zero carbon impact by 2050.On an individual fund level there is a tradeoff between sustainable investing initiatives and hewing to the wider performance benchmarks,as well as the“members best financ

191、ial interests”requirement.Some more innovative approaches to sustainable investing may be stymied by the risk-averse environment created by the Annual Performance Test.Similarly,during bullish market cycles,super funds may be wary of adding any risk protection to their portfolios if it could sacrifi

192、ce returns relative to the benchmark setting up a greater potential decline if and when markets turn bearish.Nevertheless,the industry has shrunk from a total of 174 funds in February 2022 to 145 in March 20234.Based on a J.P.Morgan survey of super fund managers conducted in early 2022,the pace of m

193、ergers is expected to continue apace over the coming years.About half of those surveyed expect there to be fewer than 75 funds by 2025,while a quarter expect fewer than 50 funds by that time.5 The consolidation of funds is expected to have multiple benefits for members.One such factor is a reduction

194、 in administrative fees as larger funds realize the benefits of scale.Additionally,mega funds have the advantage of better access to larger and/or higher quality illiquid assets with greater return potential.However,the pace of mergers has begun to slow recently as the purported benefits of larger f

195、unds for members have come under closer 4 https:/www.superannuation.asn.au/resources/superannuation-statistics5 https:/ Fund Assets as a%of GDPG20 Countries+New ZealandCanadaUSAAustraliaUKNew ZealandKorea Rep.JapanMexicoBrazilFranceIndiaGermanyRussiaTurkeyChinaIndonesia180%170%133%124%34%32%30%20%14

196、%12%9%8%4%3%2%2%Source:World Bank 2020Global Retirement Index 202311scrutiny.This comes alongside more challenges as funds with disparate memberships,investment philosophies,etc.struggle with the practical matters of merging.The path through these challenges for funds that succeed could help inform

197、the structural decisions of other nations seeking to replicate the most successful aspects of the Australian system.The superannuation system has succeeded over the past 30 plus years in creating greater financial security in retirement for Australians.As the intertwined changes around performance r

198、equirements and fund consolidation occur over the next few years,we will see additional proof points around what does or does not make such a system successful.In particular,the aging of Australias population will shine a spotlight on how super funds perform as the focus shifts towards distribution

199、for a growing portion of the membership providing another test on the system and helping to illuminate both the strengths and weaknesses to inform pension system decisions other countries may be considering.The compulsory contributions from employers have led to strong outcomes regarding retirement

200、savings.In a Natixis survey of over 8,500 individuals globally,6 82%of respondents said they believe companies should be responsible for helping employees achieve retirement security.Additionally,a survey of 750 defined-contribution plan participants in the US showed that 78%think that employer matc

201、hing contributions to retirement plans should be mandatory,while 69%believe individual contributions to retirement savings should be mandatory.7 These findings show a widespread appetite among the public for compulsory retirement contributions and support the likelihood of superannuation-style funds

202、 succeeding elsewhere in the world.Australia has exhibited a clear template for other nations to make progress on improving retirement security,but only time will tell if recent changes lead to further improvements or have unintended negative consequences.The Australian systems experience over the c

203、oming years will demonstrate multiple pathways for other countries to implement a similar pension scheme while tailoring specific elements to fit their unique savings and investing environments.6 2023 Natixis Individual Investor Survey7 2023 Natixis DC Plan Participants SurveyGlobal Retirement Index

204、 202312Material Wellbeing IndexNorway also takes the lead in the Material Wellbeing sub-index,stepping up from 2nd in 2022.The improved ranking results from gains in income per capita,where Norway climbs to 2nd,and unemployment.Also moving up the sub-index table this year are Slovenia,from 4th to 2n

205、d,and Iceland which ascends two spots to 3rd.The countries in the top three all increase their sub-index score by approximately six points.The Material Wellbeing sub-index is based on performance across three indicators:income equality,income per capita,and unemployment.The Czech Republic and the Ne

206、therlands complete the top five for the Material Wellbeing sub-index.The Czech Republic,which took 1st place last year,sees its overall score drop two points as it falls down the rankings to 4th.This follows a deterioration in the countrys income equality and income per capita scores.But with the lo

207、west unemployment rate in the EU,the Czech Republic holds onto top spot in the unemployment indicator.Meanwhile,the Netherlands drops from 3rd to 5th amid a lower score in the income per capita indicator.The remaining five countries in the sub-index top ten are all European.Of these,Switzerland,Irel

208、and,and Germany manage to improve their rankings from last year.Switzerland,which sees its Material Wellbeing score increase almost ten percentage points,jumps eight places to 6th.But Ireland stages an even greater improvement,with a twelve-percentage point score increase powering it ten spots up th

209、e sub-index rankings to 7th.Germany also rises up the Material Wellbeing table and breaks into the top ten after jumping from 11th to 8th with a six-percentage point increase.Elsewhere,Malta and Luxembourg both lose a place in the rankings,with Malta slipping from 8th to 9th and Luxembourg sliding f

210、rom 9th to 10th.Despite the overall rankings drop,Malta has a standout performance in the unemployment indicator,where it boosts its score by ten percentage points to finish joint top.The 11th to 15th rankings are held by Austria,Denmark,Australia,South Korea,and Belgium.Among this group,three count

211、ries rise up the sub-index rankings.Austria climbs four places to 11th due to gains in the unemployment indicator,while Australia ascends six spots to 13th following improvements in the unemployment and income equality indicators.And South Korea also moves up from 16th to 14th,driven by increases in

212、 the unemployment and income equality indicators.Meanwhile,Denmark slides out of the top ten,falling from 6th to 12th,due to losses in the unemployment and income per capita indicators.And Belgium closes out the top fifteen,sliding two places from 13th,despite seeing an increase in its Material Well

213、being sub-index score.Hungary,New Zealand,Japan,Canada,and the Slovak Republic complete the Material Wellbeing top twenty.Hungary drops from 12th to 16th in the sub-index following a slight deterioration Top 10Countries inMaterialWellbeingSub-Index202320222013Rankingchange12345678910Norway79%98%84%S

214、lovenia77%81%83%Iceland77%85%83%Czech Republic84%81%82%Netherlands78%86%82%Switzerland69%87%79%Ireland67%64%79%Germany71%82%77%Malta72%80%73%Luxembourg72%90%73%7111112210181022131033271Global Retirement Index 202313in its income per capita score.New Zealand ascends three spots to 17th,while Japan fa

215、lls eight places to 18th following losses in income equality and income per capita.Meanwhile,Canada secures a spot in the top twenty after a noteworthy rise up the rankings from 27th to 19th.This comes as a result of significant gains in the unemployment and income equality indicators.The Slovak Rep

216、ublic completes the top twenty,receding from 18th in the previous year.The United States,United Kingdom,Poland,Israel,and Finland take up the 21st to 25th positions.The United States leaps nine places up the rankings to 21st following a score increase of ten percentage points.The United Kingdom gain

217、s one place to 22nd.But Poland dramatically falls out of the top ten and records the greatest drop in ranking,plunging from 7th to 23rd.Its sub-index score is dragged lower by a sharp decline in the unemployment score and a less pronounced decrease in income per capita.Israel edges up one spot in th

218、e sub-index table to 24th,while Finland closes out the top 25 after falling from 21st last year.RankingScore202320222013202320222013NorwaySloveniaIcelandCzech RepublicNetherlandsSwitzerlandIrelandGermanyMaltaLuxembourgAustriaDenmarkAustraliaKorea RepBelgiumHungaryNew ZealandJapanCanadaSlovak Republi

219、cUnited StatesUnited KingdomPolandIsraelFinland12345678910111213141516171819202122232425245131417118915619161312201027183023725211146135430101523716982320171924282527261284%83%83%82%82%79%79%77%73%73%72%72%72%71%71%70%70%70%69%67%66%65%64%64%64%79%77%77%84%78%69%67%71%72%72%69%76%66%68%70%70%64%72%5

220、8%67%56%61%75%60%63%98%81%85%81%86%87%64%82%80%90%90%84%77%83%83%72%75%77%75%71%65%71%67%67%82%61%-70%71%-80%91%-100%81%-90%Color Scale0%-60%Top 25 Countriesin Material Wellbeing Sub-IndexGlobal Retirement Index 202314Japans population has the largest share of adults over age 65 in the world,with re

221、tirement age Japanese making up about 30%of the population,compared to less than 25%in other rapidly aging countries.Japan faces an acute mix of demographic pressures that have pushed it ahead of the curve relative to the rest of the OECD.Notably,its life expectancy has been the best in the world fo

222、r more than 40 years,it has employed a strict immigration policy,and it had a much shorter post-war baby boom compared to the G7 countries.Since many other countries are on a similar demographic trajectory,Japan offers a glimpse into their futures.According to the UN Population Division,by 2050,6 co

223、untries will have a retirement age cohort larger than 36%of their population,including Hong Kong,South Korea,Italy and Spain.While there are important differences in the social systems and structures of those facing the aging population dilemma,the reality is that if the underlying trends are not re

224、versed,welfare models built on government and worker support of the elderly will reach a breaking point.Japanese Prime minister Fumio Kishida recently warned that they are approaching this critical juncture,saying“Our nation is on the cusp of whether it can maintain its societal functions.”There are

225、 three main ways that governments can get on a more sustainable path:1)increase the size of the working age population via immigration and/or policies to encourage fertility;2)reduce and/or shift the cost burden of elderly support e.g.,raise the retirement age,encourage senior participation in the w

226、orkforce;and 3)find ways to do more with less e.g.,increase productivity through investments in technology and automation.Among countries with at least 1 million people https:/ offers a warning and lessons for the aging developed worldSpotlightGlobal Retirement Index 202315Japan has enacted policies

227、 in all three areas with varying success.Allowing more immigration is the most impactful and immediate way to assuage the problem,and while the government is now granting residency to marginally more immigrants than in the past,its not at the level needed to arrest population declines.The government

228、 has improved conditions for child rearing(e.g.,providing cash incentives,longer family leave,etc.)and recently the prime minister announced plans to create a new agency and double spending on family benefits by June 2023.This new action could yield results but there is skepticism about the influenc

229、e these policies have on fertility.Japan has had success in increasing the labor force among seniors,driven primarily by an increase in the retirement age and a reduction in benefits.4 About 40%of this cohort say they are interested in earning income(compared to 30%in the US5).However,the growth of

230、this segment has recently stalled,suggesting that future labor force gains may need to come from elsewhere.4 https:/www.nber.org/system/files/working_papers/w24614/w24614.pdf5 https:/ Oldest Countries in 2050Share of population age 65 or olderHong KongSouth KoreaJapanItalySpain21.0%19.6%22.7%16.7%7.

231、7%29.8%13.4%23.7%16.7%40.6%39.4%37.5%37.1%36.6%19.9%20212050 projected increaseSource:UN Population Division and World BankJapans Over 65 Labor Force2018201920202021202224.725.325.525.625.6Labor force(thousands)Labor force participation rate(%)Source:Statistics Bureau of Japan 874904919926927Global

232、Retirement Index 202316Health IndexNorway remains in pole position in the Health sub-index this year.While Japan moves up one place from 3rd to 2nd,Luxembourg moves in the opposite direction and slips from 2nd to 3rd.The Health sub-index is based on performance across three indicators:insured health

233、 expenditure,life expectancy and health expenditure per capita.Life expectancy is a key driver of overall performance in the sub-index.Norway achieves a higher overall score in the sub-index due to an improved ranking in life expectancy,where it climbs from 8th in 2022 to 4th.But Japan clinches firs

234、t place for the life expectancy indicator and in the process improves its overall sub-index ranking.Conversely,Luxembourg slips one spot in the sub-index to 3rd as its life expectancy decreases and its indicator ranking consequently drops to 18th from 14th.Iceland and Switzerland close out the top f

235、ive for the sub-index,with Iceland recording the biggest jump up the rankings from 10th to 4th.Meanwhile,Switzerland edges down one place to 5th in the sub-index after falling from 2nd to 6th in the life expectancy rankings.And Sweden,which descends from 7th to 10th in life expectancy,falls out of t

236、he sub-index top five after dropping one place to 6th.Completing the top ten are Ireland,France,Australia,and the Netherlands.While Ireland nudges up from 8th to 7th,France descends from 6th to 8th.Australia stays steady at 9th in the sub-index but manages to enter the top five in life expectancy by

237、 climbing four places from 9th last year.The Netherlands slips three rankings from 7th last year to close out the Health sub-index top ten.This comes as the country falls down the life expectancy rankings from 17th to 20th.Denmark,Germany,Canada,New Zealand,and Finland occupy the 11th to 15th spots

238、in the Health sub-index.Denmark ascends two places up the rankings table to 11th,despite its life expectancy score staying static.And Germany manages to retain 12th place this year,albeit finishing with a slightly lower life expectancy score.Meanwhile,New Zealand rises two positions up the Health ra

239、nkings to 14th after leaping six places in life expectancy from 22nd to 16th.And Finland moves up four places to 15th in the wake of an improved life expectancy ranking.The next five countries down the table are Austria,Belgium,the United Kingdom,Singapore,and Spain.Austria descends from 14th to 16t

240、h,following a seven-point decrease in life expectancy.Belgium also loses two places in the rankings,dropping to 17th,amid an eight-point slide in life expectancy.Meanwhile,the United Kingdom breaks into the Health sub-index top twenty after moving up three places from 21st to 18th.Singapore also imp

241、roves its sub-index ranking,from 23rd to 19th,and performs particularly well in life expectancy where it finishes 2nd,up from 3rd last year.And Spain closes out the top twenty for the Health sub-index,Top 10Countries inHealthSub-Index202320222013RankingchangeNorway0391%87%92%1Japan7191%84%91%2Luxemb

242、ourg6191%86%89%3Iceland1688%85%88%4Switzerland1190%86%88%5Sweden10190%83%88%6Ireland11189%82%88%7France3290%88%88%8Australia0288%84%88%9Netherlands0389%86%87%10Global Retirement Index 202317but falls two places from 18th in 2022.This comes as Spain drops out of the top five for life expectancy with

243、a lower ranking(4th to 12th)and score(94%to 84%).The last five countries in the top 25 are Italy,Israel,Slovenia,South Korea,and the United States.Italy loses one place to 21st,while Israel gains two spots to 22nd.Israels higher ranking follows a better performance in life expectancy,where it improv

244、es from 10th last year to 8th.Meanwhile,Slovenia moves down one position to 23rd in the sub-index,while South Korea steps up one spot to 24th.And the United States completes the top 25,with a lower ranking(17th to 25th)attributable to a sizable decline in the life expectancy indicator.RankingTop 25

245、Countriesin Health Sub-IndexScore202320222013202320222013NorwayJapanLuxembourgIcelandSwitzerlandSwedenIrelandFranceAustraliaNetherlandsDenmarkGermanyCanadaNew ZealandFinlandAustriaBelgiumUnited KingdomSingaporeSpainItalyIsraelSloveniaKorea RepUnited States12345678910111213141516171819202122232425132

246、104586971312111619141521231820242225174108951519311712226251716213916182422322092%91%89%88%88%88%88%88%88%87%86%86%85%85%84%83%82%82%82%81%81%81%80%80%78%91%91%91%88%90%90%89%90%88%89%86%87%87%85%84%86%85%83%82%85%83%82%82%80%85%87%84%86%85%86%83%82%88%84%86%84%89%79%80%83%90%86%82%66%83%83%80%81%78

247、%82%61%-70%71%-80%91%-100%81%-90%Color Scale0%-60%Global Retirement Index 202318Quality of Life IndexFinland,13th in the GRI overall,keeps its number one position in the Quality of Life sub-index for the fifth consecutive year.The sub-index is based on performance across five indicators:air quality,

248、biodiversity and habitat,environmental factors,happiness,and water and sanitation.Consistent leader Finland ranks highly on three indicators happiness(1st),water&sanitation(1st),and air quality(3rd).Against this,the country slips down the rankings in the biodiversity&habitat and environmental factor

249、s indicators.Nordic countries constitute the next three in the rankings,with Denmark,Sweden,and Norway retaining their rankings from last year.Iceland closes out the top five in the sub-index,moving up from 6th in 2022.Switzerland,Austria,New Zealand,the Netherlands,and Luxembourg complete the sub-i

250、ndex top ten.Switzerland loses one place to 6th,while Austria and New Zealand step up one spot to 7th and 8th,respectively.New Zealands progress follows improvements in the water&sanitation,environmental factors,and air quality indicators.Meanwhile,the Netherlands breaks into the top ten this year,c

251、limbing two places to 9th.The country performs particularly strongly in the water&sanitation indicator,where it ties in first place with several other countries.And there is no change for Luxembourg,which stays at number ten in Quality of Life this year.The United Kingdom,Germany,Ireland,France,and

252、Australia rank from 11th to 15th in Quality of Life.The United Kingdom records the greatest slide down the sub-index rankings as it exits the top ten and falls from 7th last year to 11th.The country also loses it top five placement for the biodiversity and habitat indicator,plunging from 4th in 2022

253、 to 15th.Meanwhile,Germany and Ireland swap rankings,with Germany rising one spot to 12th and Ireland slipping one place to 13th.And France and Australia retain their positions,in 14th and 15th place,respectively.France enters the top ten for the air quality indicator,stepping up one spot from 11th

254、in 2022.The countries lying 16th to 20th in the sub-index rankings are Belgium,Canada,Israel,Spain,and Italy.Belgium and Canada swap places,with Belgium improving one spot to 16th and Canada slipping one place to 17th.Israel,Spain,and Italy keep their 2022 rankings,despite all increasing their sub-i

255、ndex score by at least a percentage point.Israels standout performance comes in the happiness indicator,where it breaks into the top five after climbing up the rankings from 9th to 4th.Rounding out the top 25 countries are the United States,Estonia,Slovenia,Lithuania,and the Czech Republic.The Top 1

256、0Countries inQualityof LifeSub-Index202320222013RankingchangeFinland089%83%90%1Denmark088%87%89%2Sweden2087%87%88%3Norway0087%89%87%4Iceland3186%85%87%5Switzerland486%95%85%6Austria182%86%83%7New Zealand81%87%82%8Netherlands280%83%82%9Luxembourg81%80%81%1011321113009Global Retirement Index 202319Uni

257、ted States stays in 21st place,while Estonia and Slovenia swap positions in 22nd and 23rd,respectively.Lithuania ascends three places up the rankings to 24th and increases its sub-index score by six percentage points.And the Czech Republic closes out the top 25,slipping one place from 24th,but posti

258、ng a slightly improved sub-index score.RankingScore20232022201320232022201390%89%88%87%87%85%83%82%82%81%80%80%79%79%79%76%76%76%75%73%72%72%71%70%70%89%88%87%87%86%86%82%81%80%81%82%80%80%78%77%74%74%74%74%72%72%68%69%64%68%83%87%87%89%85%95%86%87%83%80%87%85%78%85%82%81%83%81%79%83%80%59%73%64%76%

259、Color Scale61%-70%71%-80%91%-100%81%-90%0%-60%Top 25 Countriesin Quality of Life Sub-IndexFinlandDenmarkSwedenNorwayIcelandSwitzerlandAustriaNew ZealandNetherlandsLuxembourgUnited KingdomGermanyIrelandFranceAustraliaBelgiumCanadaIsraelSpainItalyUnited StatesEstoniaSloveniaLithuaniaCzech Republic1234

260、56789101112131415161718192021222324251234658911107131214151716181920212322272414352917611194102481518121723132039303526Global Retirement Index 202320The Russian invasion of Ukraine in early 2022 has prompted a fundamental reshaping of the global energy landscape,with far-reaching implications that w

261、ill influence society for years to come.This crisis has exposed the vulnerabilities of relying heavily on fossil fuels,highlighting the urgent need for both the diversification of energy sources and energy security.Countries worldwide are putting fresh emphasis on the need to reduce their reliance o

262、n imported fossil fuels and embrace cleaner and more sustainable alternatives.Russia,one of the worlds largest exporters of fossil fuels,has traditionally played a significant role in supplying energy to Europe.In addition to fossil fuels,Russias state-owned Rosatom is the main supplier of critical

263、components for nuclear fuel.While the West has imposed sanctions on various Russian energy sources in response to the invasion,nuclear fuel remains an exception as the United States and some European countries expand their nuclear capacity to aid in the shift from fossil fuels.Prior to the invasion,

264、Europe,the US and UK consumed more than half of Russias total oil exports;this figure has fallen to less than 20%as of January 2023 as Turkey,China,and India have stepped in.Amid the Russo-Ukrainian War,the issue of energy security has taken center stage.Russias decision to cut off supplies of fossi

265、l fuels to Europe has had significant implications,causing disruptions in energy markets and threatening the stability of global energy prices.Moreover,the imposition of sanctions on Russian exports has further exacerbated the concerns surrounding energy security.https:/ as a catalyst:Russian invasi

266、on brings new urgency to energy transitionSpotlightGlobal Retirement Index 202321Russia Total Oil ExportsSource:IEA,Argus,Kpler.EU Crude OilJan-Feb 2022EU ProductsUK+USTurkeyChinaIndiaOECD AsiaOther/unknownJan 20232.40.60.70.52.31.62.41.50.70.21.70.10.41.0Million barrels per dayTraditionally,one of

267、the main challenges of renewable energy has been its higher cost and lesser reliability compared to fossil fuels.However,recent years have seen a transformation in the renewable energy sector,as the cost of renewable energy has plummeted with increased investment in research and development.This cos

268、t reduction,coupled with technological advancements and the ongoing geopolitical conflict,has made renewable energy sources increasingly competitive and viable for meeting energy needs.In the aftermath of the invasion,a surge in government policies and investment aimed at accelerating the shift to c

269、lean energy sources demonstrates how seriously countries are taking the issues of fossil fuel dependence,energy security and climate change.For example,the Inflation Reduction Act in the United States,seen as the most significant climate legislation in the countrys history,solidifies the pathway for

270、 the energy transition.Renewable energy made up about 21%of the total power generated by the US at the time of the invasion-by 2050,this is expected to more than double to 44%,fueled by the Inflation Reduction Act4.By promoting the use of clean energy sources,the law not only addresses economic issu

271、es but also contributes to reducing greenhouse gas emissions and enhancing energy security in a post-invasion world.It signifies a comprehensive approach to building a resilient and sustainable energy system that supports the global fight against climate change.Germany is a leading example of how to

272、 encourage the shift to renewable energies,and the Russian invasion of Ukraine has only strengthened its resolve.With a strong commitment to reducing greenhouse gas emissions,Germanys Energiewende strategy has significantly increased the share of renewable energy sources in its energy mix.The countr

273、y has implemented laws such as the Renewable Energy Act(EEG),which offers attractive incentives for renewable energy generation5.The EEG 2023,an amendment to the original Renewable Energy Act in 2021,marks the most significant energy legislation https:/ https:/ 4 https:/www.eia.gov/todayinenergy/det

274、ail.php?id=51698#5 https:/www.cleanenergywire.org/factsheets/germanys-2022-renewables-and-energy-reformsGlobal Retirement Index 202322amendment in decades,propelling efforts toward climate neutrality,boosting the integration of renewable energy sources in electricity consumption and aiming for renew

275、ables to reach an impressive 80 percent of their overall energy mix by the year 20306.Germany has shepherded remarkable progress in deploying wind and solar power,leading to environmental benefits,job creation,and economic growth.The German government has showcased that prioritizing clean energy and

276、 supporting sustainable development is powerful not only for a countrys economy,but geopolitically as well.The momentum behind clean energy policies since the invasion of Ukraine emphasizes the growing recognition of sustainable practices and the urgent need to reduce greenhouse gas emissions.Throug

277、h increased investments,research,and supportive policies,governments are paving the way for a future powered by clean and renewable energy sources.The commitment to the energy transition extends beyond individual countries.International collaborations and agreements have been forged to promote the s

278、haring of best U.S.net electricity generation by fuelSource:EIA,Annual Energy Outlook 2023,AEO2023 Reference CaseBillion kWh*Includes wind&solar*Includes petroleum,conventional hydroelectric power,geothermal,wood and other biomass,pump storage,non-biogenicmunicipal waste in the electric power sector

279、,refinery gas,still gas,batteries,chemicals,hydrogen,pitch,purchased steam,sulfur,and miscellaneous technologies.Renewables*Natural gasCoalNuclearOther*20001,0002,0003,0004,0005,0006,0002022201520302045historyprojections6 https:/www.bundesregierung.de/breg-de/themen/klimaschutz/amendment-of-the-rene

280、wables-act-2060448 7 https:/www.politico.eu/article/north-sea-global-power-plant-clean-energy-renewable-green-deal-climate-crisis/practices,technology transfer and joint research efforts.These collaborations foster global cooperation in tackling climate change and provide a platform for countries to

281、 learn from others experiences and successes.One notable international partnership is the North Sea collaboration.Countries in the North Sea region,including the Netherlands,Germany,Denmark,Norway,and Belgium,have joined forces to leverage their collective strengths and resources in the development

282、of offshore wind energy7.Through this collaboration,they aim to establish a robust offshore wind industry,harmonize regulations,and promote the overall integration of renewable energy into their respective energy systems.Through concerted efforts and international collaborations,the world is witness

283、ing a significant shift towards a sustainable energy future;one that will foster a cleaner,more secure,and prosperous world for generations to come.Retirees are not immune to the consequences of these shifts;countries that embrace clean energy will foster a healthier environment,and while there may

284、be some financial impacts on retiree portfolios(e.g.,stranded assets),populations at large are likely to benefit financially in the long term,as energy innovation and sustainability power the global economy of the future.Global Retirement Index 202323The Top 25:Year-on-Year TrendsThe list of countri

285、es in the top 25 has remained the same for four consecutive years.Consistent performers Norway,Switzerland,Iceland,and Ireland remain in the top four this year,while the Luxembourg replaces Australia in fifth.The Netherlands also steps up two spots into 6th,followed by Australia in 7th.New Zealand s

286、lips two rankings to 8th,while Germany enters the top ten after climbing from 11th last year to 9th.And Denmark loses one place to complete the top ten in this years GRI.Switzerland(2nd)and Ireland(4th)maintain their rankings for the fourth consecutive year,while New Zealand and Denmark both see ran

287、king changes for the first time in four years.Austria and Canada both ascend three places to 11th and 12th,respectively.And while Finland and Sweden slide one spot to 13th and 14th,respectively.Slovenia powers six places up the rankings to 15th.The United Kingdom also moves up the table,from 19th to

288、 16th.But Israel inches down to 17th from 16th,while the Czech Republic leaves the top ten by plunging eight places to 18th.Meanwhile,Belgium improves one place to 19th and the United States slips from 18th to close out the top twenty countries in the GRI.Underlining the static nature of this group,

289、only two countries in the top 25 Slovenia and the Czech Republic see their rankings change by more than five places.Elsewhere,South Korea descends from 17th to 21st,while Malta and France both edge up one place in the rankings,finishing 22nd and 23rd respectively.Japan drops two places to 24th from

290、22nd,while Estonia closes out the top 25 for the second year in a row.Global Retirement Index 202324CountryTrend inRanking(2023-2013)NorwaySwitzerlandIcelandIrelandLuxembourgNetherlandsAustraliaNew ZealandGermanyDenmarkAustriaCanadaFinlandSwedenSloveniaUnited KingdomIsraelCzech RepublicBelgiumUnited

291、 StatesKorea RepMaltaFranceJapanEstoniaRanking202320222013123456789101112131415161718192021222324251234785611914151213211916102018172324222512142531151068413971918221612201726152731Score20232022201383%82%81%80%79%79%78%77%76%76%75%74%74%74%73%73%72%72%72%71%70%69%69%68%67%81%80%79%76%75%75%75%75%72%

292、74%71%71%71%71%69%69%70%73%69%69%70%68%66%69%66%87%84%76%70%81%76%79%77%78%78%80%76%78%78%72%73%72%75%76%72%74%69%75%69%66%Top 25 Countries in 2022 GRI61%-70%51%-60%81%-100%71%-80%Score ScaleIncreaseConsistentDecreaseChanges in 2023The only countries in the top 25 to experience no change in ranking

293、are the first four(Norway,Switzerland,Iceland,and Ireland)and Estonia in 25th.Over the past decade,there have been some noteworthy swings in the top 25.Ireland has seen the largest change,leaping 21 places from 25th in 2013 to fourth this year.Iceland has also improved significantly,moving from 14th

294、 ten years ago to third.Meanwhile,Sweden and France have seen large swings in the opposite direction,moving from 7th and 15th in 2013 to 15th and 23rd this year,respectively.The common drivers of performance among the top 25 are higher interest rates,as well as improvements in employment levels and

295、in environmental progress.As economies rebounded from the global pandemic,employment increased strongly,but so did inflation which forced central banks to hike rates to maintain stability.Progress on the environment has also played a crucial role in driving positive change in some countries,as they

296、adopt sustainable practices and invest in clean energy initiatives,especially in the wake of the Russian invasion of Ukraine.Global Retirement Index 202325CountryReportsThis section offers a summary of GRI performance for each country finishing in the top 25 overall.Each country report references la

297、st years figures and shows how different indicator movements have affected the countrys overall and sub-index scores this year.The goal of the country analysis is to obtain an adequate proxy for changes in retirement conditions in a particular country by comparing year-on-year performance and moveme

298、nts in ranking.Global Retirement Index 2023261.NorwayNorway continues to lead the GRI,retaining first place in the rankings with an overall score of 83%.The country takes top spot in the Material Wellbeing sub-index,edging up from second last year.This is driven by a sizeable improvement in the unem

299、ployment indicator in response to the countrys rate of unemployment dropping to a near-decade low.Norway also records a higher score in income per capita.The country drops one spot in the Finances in Retirement sub-index to 9th,despite an increase in its score from 69%to 70%.This is primarily due to

300、 an increase in the bank nonperforming loans indicator,placing just outside the top five for this indicator(6th).Against this,Norways inflation rate remains stubbornly elevated at its highest level in decades but jumps in ranking from 35th in the previous year to 14th this year.Norway keeps hold of

301、its top ranking in the Health sub-index,improving by one percentage point.This results from a slight rise in life expectancy.The country avoids recording an increase in mortality,despite the lingering impact of the pandemic,mainly because of high vaccination rates within its population.While Norway

302、maintains its score(87%)and ranking(4th)in the Quality of Life sub-index,it sits at the top of the table for the water and sanitation indicator,up from 5th last year.This is an area in which the country has achieved longstanding success.The United Nations notes how Norway has improved the way it dis

303、infects and filters drinking water at treatment plants over the last three decades.The country has also increased its commitment to protecting those areas vital for water-related ecosystems.NORWAY111183%81%87%RANKINGSCOREHEALTHQUALITY OF LIFEMATERIAL WELLBEINGFINANCES IN RETIREMENTOld-Age Dependency

304、Bank Non-Performing LoansInflationInterest RatesTax PressureGovernment IndebtednessGovernance92%87%84%70%36%75%65%75%14%66%92%91%87%79%69%39%68%92%70%8%69%93%87%89%98%74%47%64%100%41%42%93%202320222013202320222013202320222013SCORESSUB-INDEX ANDINDICATOR SCORESCHANGESGlobal Retirement Index 2023272.S

305、witzerlandHigh-flying Switzerland retains second place in the GRI and improves its score from 80%to 82%on the back of a stronger set of Material Wellbeing results.Switzerland jumps up eight places in Material Wellbeing to 6th and sees its score increase from 69%to 79%.A key factor driving the improv

306、ement is the unemployment indicator,where the country surges 20 places up the table to grab the top spot.Switzerlands unemployment rate,which dropped to 2.1%in February 2023,stands at a two-decade low.However,this is exacerbating a historic labor shortage caused by an ageing population and economic

307、recovery.Elsewhere,the country records small declines in income equality(20th to 22nd)and income per capita(4th to 5th).The countrys best performance is in Finances in Retirement where it tops the table with an improved ranking(2nd to 1st)and score(74%to 75%).Switzerland makes gains in governance(6t

308、h to 4th),government indebtedness(10th to 9th),and tax pressure(14th to 13th).But the standout area is inflation,where it finishes second.Inflation in Switzerland,which fell to 2.9%in March 2023,is lower than other advanced economies.This can be attributed to the strength of its currency and success

309、ive interest rate rises.However,the Swiss base rate(1.5%in March 2023)remains lower than the ECBs deposit rate(3%in March 2023).This helps explain the countrys steep fall in the interest rate indicator(8th to 43rd).Switzerland manages a top five finish in Health(5th),despite slipping one place.The s

310、teady performance is reflected in static indicator rankings for health expenditure per capita(2nd)and insured health expenditure(30th).Quality of Life also sees steady year on year performance(5th to 6th).A particular positive is water and sanitation,where Switzerland moves up one place to clinch to

311、p position.Despite an increase in score in the environmental factors indicator,Switzerland slips in ranking from 1st to 2nd.SWITZERLAND222282%80%84%RANKINGSCOREHEALTHQUALITY OF LIFEMATERIAL WELLBEINGFINANCES IN RETIREMENTOld-Age DependencyBank Non-Performing LoansInflationInterest RatesTax PressureG

312、overnment IndebtednessGovernance88%85%79%75%34%70%88%63%39%67%92%90%86%69%74%34%73%100%74%25%68%92%86%95%87%70%41%83%100%64%12%43%93%202320222013202320222013202320222013SCORESSUB-INDEX ANDINDICATOR SCORESCHANGESGlobal Retirement Index 2023283.IcelandIceland retains its third-place finish in the GRI

313、with an improved overall score of 81%.This is fueled by a better performance in the Material Wellbeing sub-index following a near 20-point jump in the unemployment indicator.The unemployment rate in Iceland has remained relatively stable and is expected to decrease going forward.As a result,Iceland

314、moves up to third in the sub-index rankings.The Quality of Life sub-index score increases slightly(from 86%to 87%),driven by an improvement in the water and sanitation indicator where Iceland moves from 6th to first.It also makes gains in the environmental factors indicator.These impressive results

315、reflect how the country is a global leader in its use of renewable and clean energy and implementation of geothermal regulations and guidelines.Iceland jumps into the top five(4th)in the Health sub-index with the same score as last year(88%).The countrys average life expectancy improves due to Icela

316、nders being among those with the highest life expectancy in Europe.Experts attribute this to the countrys dedication to a healthy lifestyle and diet,along with low levels of pollution.Icelands Finances in Retirement sub-index score also remains the same as last year,despite increases in the old-age

317、dependency,bank nonperforming loans and tax pressure indicators.The country also sees an improvement in the interest rate indicator score,maintaining a spot in the top ten(9th)for this indicator.ICELAND3331481%79%76%RANKINGSCOREHEALTHQUALITY OF LIFEMATERIAL WELLBEINGFINANCES IN RETIREMENTOld-Age Dep

318、endencyBank Non-Performing LoansInflationInterest RatesTax PressureGovernment IndebtednessGovernance88%87%83%68%50%49%52%84%19%46%91%88%86%77%68%45%45%90%79%13%44%90%85%85%85%54%61%1%52%82%7%23%89%202320222013202320222013202320222013SCORESSUB-INDEX ANDINDICATOR SCORESCHANGESGlobal Retirement Index 2

319、023294.IrelandIreland stays in fourth place in the GRI rankings and sees its overall score climb from 76%to 80%.The higher score comes on the back of gains in the Material Wellbeing and Finances sub-indices.A better Material Wellbeing score stems from a significant improvement in the unemployment an

320、d income equality indicators.The fall in the countrys unemployment rate continues the trend of a sustained decline,reflecting a strong labor market as Irelands economy stages a post-pandemic bounce back.The bright economic outlook is translating into an improved showing in Finances in Retirement,whe

321、re Ireland makes its way into the top ten(6th)with an improved score.This is powered by gains in the interest rate,tax pressure,bank nonperforming loans and government indebtedness indicators.Irelands economic growth is ahead of the eurozone average,driven by consumer and business spending.Ireland s

322、ees its Quality of Life sub-index score fall marginally following declines in the biodiversity and habitat and happiness indicators.But biodiversity is a cause that Ireland is making a stand on,with the worlds first citizens assembly on biodiversity loss recently taking place in Dublin.Ireland has a

323、lso seen demonstrators take to the streets to call for measures to protect the countrys biodiversity.Meanwhile,Irelands Health sub-index score slips slightly owing to the impact of the pandemic on life expectancy.IRELAND4442580%76%70%RANKINGSCOREHEALTHQUALITY OF LIFEMATERIAL WELLBEINGFINANCES IN RET

324、IREMENTOld-Age DependencyBank Non-Performing LoansInflationInterest RatesTax PressureGovernment IndebtednessGovernance88%79%79%73%49%44%57%74%62%57%89%89%80%67%70%49%38%100%43%37%55%89%82%78%64%60%65%5%100%77%14%21%89%202320222013202320222013202320222013SCORESSUB-INDEX ANDINDICATOR SCORESCHANGESGlob

325、al Retirement Index 2023305.LuxembourgLuxembourg closes out the top five this year(5th),increasing its overall score to 79%.This is based on a substantial improvement in Finances in Retirement,where the country increases its score to 73%and closes out the top five(5th).The rise is due to gains in Lu

326、xembourgs interest rate and tax pressure indicators.These positive results come as the countrys government recently proposed new tax measures in an effort to curb the inflationary pressures on households and businesses.The Material Wellbeing sub-index score increases slightly,and its ranking remains

327、 inside the top ten(10th)as the income equality and unemployment indicators improve from last year.While the unemployment rate in Luxembourg has been holding steady,the jobs market is cooling with job creation numbers slowing.The number of those seeking jobs has also increased,some of which are Ukra

328、inian refugees fleeing from the Russia-Ukraine conflict and now living under provisional protection status.The countrys score in the Health sub-index decreases,driven by a decline in average life expectancy.This is attributable to the sudden increase in mortality caused by the global pandemic.Luxemb

329、ourgs Quality of Life sub-index score remains the same and it again ranks in tenth place,but it makes a sizeable gain in the water and sanitation indicator,moving into the top ten(10th).This comes after a new law was passed at the end of last year to improve the quality of tap water and make it safe

330、r for citizens to drink.LUXEMBOURG557379%75%81%RANKINGSCOREHEALTHQUALITY OF LIFEMATERIAL WELLBEINGFINANCES IN RETIREMENTOld-Age DependencyBank Non-Performing LoansInflationInterest RatesTax PressureGovernment IndebtednessGovernance89%81%73%73%53%58%82%75%14%87%92%91%81%72%59%55%69%100%1%9%88%92%86%8

331、0%90%68%55%100%64%7%66%92%202320222013202320222013202320222013SCORESSUB-INDEX ANDINDICATOR SCORESCHANGESGlobal Retirement Index 2023316.NetherlandsThe Netherlands lands just outside the top five this year in 6th.The country moves up two places in this years GRI rankings from 8th in 2022,based on a s

332、olid all-round performance across the four sub-indices.In particular,the Netherlands rises ten spots in the Finances in Retirement sub-index to 16th and two spots to 9th in the Quality of Life sub-index.And while it slips slightly in Health and Material Wellbeing,it still sits in the top ten for the

333、se sub-indices.On the Finances in Retirement sub-index,the Netherlands elevation comes despite falls in its ranking for inflation and interest rates.On inflation,the country tumbles from one of the leaders to 21st.This is due to a spike in the Dutch inflation rate,which peaked at 15.4%in the fourth quarter of 2022.Meanwhile,the Netherlands saw its ranking on interest rates slide from 26th to 39th.