America’s Retirement ‘Report Card’ Isn’t Great — An Expert Breaks Down How It Could Be Better
- - America’s Retirement ‘Report Card’ Isn’t Great — An Expert Breaks Down How It Could Be Better
Cara Danielle BrownDecember 20, 2025 at 12:25 AM
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Each year since 2012, Natixis Investment Managers has released its Global Retirement Index ranking countries’ retirement security — or how well-equipped citizens feel their country can support its aging population. According to the 2025 Global Retirement Index, the United States ranks 21st out of 44 countries assessed resulting in many asking, “Why so low?”
First, it’s important to remember that the United States is a large country, and large countries tend to lag behind smaller countries when it comes to how citizens feel about retirement security.
Per CNBC correspondent, Sharon Epperson, “Smaller countries are ahead of us because, as the analysts there say, it’s easier for them to kind of put together programs that make people feel more secure. They’re not as concerned about losing retirement benefits or government benefits, they’re not as concerned about income inequality in some of these smaller countries.”
She added that they also aren’t as concerned about inflation or generally running out of money in old age. In other words, because of less public debt and less exposure to market volatility, smaller countries are systemically better able to support retirees than their larger counterparts.
Experts, however, say not all of the issues point to structural flaws. In the U.S., according to Derek Carlson, president and managing broker at Realty ONE Group MVP, individuals bear some of the responsibility. Here’s why.
What Can the U.S. Do To Improve Its Ranking?
It’s important to highlight that the study is not based on financial data, but rather how secure people report feeling about retirement — and that can, per Carlson, somewhat be attributed to their own inadequate financial planning resulting from a lack of financial literacy.
“One of the biggest reasons so many Americans are so concerned with losing government benefits, specifically in relation to retirement, is because the overwhelming majority simply haven’t prepared. […] The truth is government benefits were never meant to be something people relied on for 100% of their income — they were meant to be a last resort safety net,” stated Carlson.
Additionally, many people never had to handle their own retirement because, sixty years ago, most employers provided pensions. This is no longer the norm.
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“I blame [poor preparation] on the lack of financial literacy education,” said Carlson, who hypothesized K-12 curriculums that include financial literacy could alleviate much of the problem for future generations. This could improve America’s ranking in years to come.
Carlson insisted proper education would teach individuals the importance of contributing to their retirement accounts early and regularly, as well as investing along the way, “particularly into assets like real estate, stocks and precious metals that act as a hedge against inflation.”
What About Americans Approaching Retirement in the Near Future? Should They Move Abroad?
Andrew Latham, director of content at SuperMoney, acknowledged that relocating to countries like Portugal or Mexico could be a smart move in terms of helping individuals’ money go further.
But those same people would ultimately be trading familiarity and family proxy which, once thought through, could be a deal-breaker. For many, the better option is rethinking retirement at home.
Latham recommended “downsizing, moving to a lower cost state, working longer by choice or embracing community living.” He also reiterated Carlson’s sentiment: “The U.S. has the tools to support a good retirement, but making it work takes planning.”
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This article originally appeared on GOBankingRates.com: America’s Retirement ‘Report Card’ Isn’t Great — An Expert Breaks Down How It Could Be Better
Source: “AOL Money”
