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Retirement readiness: a comparative analysis of Australia, the United Kingdom & the United States

12 Oct 2017
CREATORS
This international survey shows that many people in the United States, the United Kingdom and Australia struggle with preparing for retirement for similar reasons.

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Description

This report shows that people struggle with planning for retirement because they often aren’t equipped to address complex questions. Analysis included in the report recommends targeted financial education, greater use of default features in private retirement plans, and ensuring that public pension and social insurance systems are sustainable and capable of providing adequately for those who depend on them most.

A major factor behind the challenges, according to the report, is the increasing demand on Americans, British, and Australians to individually manage the risks of their future retirement. While the pension and retirement systems of all three countries provide some safeguards against risks, the trend away from defined benefit pension systems continues to shift greater responsibility to individuals for taking the steps to achieve financial security in retirement.

Little more than half of all respondents (working-age people ages 18–64) believe they are preparing for retirement’s risks; nearly half are not. Among the risks, longevity risk is the least understood.

The survey recommends targeted financial education, greater use of default features in private retirement plans, and ensuring that public pension and social insurance systems are sustainable and capable of providing adequately for those who depend on them most.

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PUBLICATION DETAILS

Resource Type: 
APO URI: http://apo.org.au/node/114156
Publication Place: 
Washington D.C
License Type: 
All Rights Reserved