U.S. lags Europe, less affluent nations in retirement security, according to new worldwide index developed by Natixis Global Asset Management

Transcription

1 U.S. lags Eurpe, less affluent natins in retirement security, accrding t new wrldwide index develped by Natixis Glbal Asset Management As aging ppulatin puts gvernment resurces under strain, Durable Prtfli Cnstructin can help individuals wh will need t d mre t finance their retirement. Bstn, March 7, 2013 The United States ranks 19 th wrldwide in the retirement security f its citizens, accrding t a new annual index cmpiled by Natixis Glbal Asset Management (NGAM). The findings suggest that Americans will need t pick up a bigger share f their retirement csts especially as the number f retirees grws and the gvernment s ability t supprt them fades. The Natixis Glbal Retirement Index gauges hw well retired citizens live in 150 natins, based n measures f health, material well-being, finances and ther factrs. The study was released tday by the NGAM Durable Prtfli Research Center, which cnducts research n risk management, asset allcatin and ther investment issues. NGAM is the wrld s 13th-largest investment management firm and versees $779 billin, including retirement assets fr institutins and individuals. 1 The message is clear: Yu will be called n t finance mre f yur retirement, said Jhn Hailer, NGAM s president and chief executive fficer fr the Americas and Asia. Citizens f ther industrialized natins can rely n strng scial safety nets in ld age, at least fr nw. In the U.S., we encurage wrkers t plan, save and invest, and prmte plicies that help them meet their future needs. 2/2 TABLE: Natixis Glbal Retirement Index Tp 20 Natins 1. Nrway 8. Denmark 14. Belgium 2. Switzerland 9. Germany 15. Japan 3. Luxemburg 10. France 16. Slvenia 4. Sweden 11. Australia 17. Czech Republic 5. Austria 12. Israel 18. Slvakia 6. Finland 13. Canada 19. United States 7. Netherlands 20. United Kingdm - mre - 1/4 1 Cerulli Quantitative Update: Glbal Markets 2012 ranked Natixis Glbal Asset Management, S.A. as the 13th largest asset manager in the wrld based n assets under management as f December 31, Bylstn Street, Bstn, MA ngam.natixis.cm

2 Thugh the U.S. is the wrld s biggest pensin market, it lags behind less-affluent natins n measures f incme and health, accrding t the index. While the U.S. leads the wrld in percapita health spending, individuals are still required t pay a prtin f this expense n their wn. That leaves many health csts in the hands f retirees and takes resurces away frm their ther needs. In cntrast, Western Eurpean natins backed by rbust health care and retiree scial prgrams dminate the tp f the rankings, taking the first 10 spts. Nrway is first verall, fllwed by Switzerland, Luxemburg, Sweden and Austria. Australia is the highest-ranked nn-eurpean cuntry, fllwed by Israel and Canada. The U.S. finished ahead f the United Kingdm, but trailed the Czech Republic and Slvakia. Demgraphic challenges Like many ther natins, the U.S. is grappling with significant demgraphic change, including a rapidly aging ppulatin, rising life expectancy rates and declining birth rates. Glbally, the number f peple aged 65 r lder is n track t triple by By that time, the rati f the wrking-age ppulatin t thse ver 65 in the U.S. is expected t drp frm 5-t- 1 t 2.8-t-1. 2 These trends are likely t diminish the gvernment s ability t finance prgrams such as Scial Security and Medicare, and will mean a heavier financial burden ging frward fr individuals saving fr retirement. Retirement savings deficit The ecnmic dwnturn has taken a majr tll n retirement savings. Accrding t a recent U.S. Senate reprt, the cuntry is facing a retirement savings deficit f $6.6 trillin, r nearly $57,000 per husehld. 3 As a result, 53% f American wrkers 30 and lder are n a path that will leave them unprepared fr retirement, up significantly frm 38% in Cmpunding the issue, nly half f all wrkers have access t emplyer-spnsred plans, and thse wh d participate ften make the cmmn mistakes f saving t little r investing t much in lwer-returning prducts. Individual respnsibility The bttm line is that U.S. wrkers, like many f their cunterparts acrss the glbe, have t step up even mre and take charge f their retirement futures, said Tracey Flaherty, NGAM s senir vice president fr gvernment relatins and retirement strategies. If these challenges aren t met, they may nt have adequate incme in retirement, with negative cnsequences fr their health and verall quality f life. T meet their retirement bjectives, investrs shuld emply a brad range f asset classes, including stcks, bnds and alternative investments such as cmmdities and hedging strategies. A diversified, durable prtfli can help investrs temper shrt-term vlatility and pursue lng-term grwth thrugh different market cycles. Fr a mre detailed verview f the Natixis Glbal Retirement Index, including rankings f all 150 natins, g t ngam.natixis.cm/pressrm. 2 Ppulatin Reference Bureau, p. 12 and 13 3 U.S. Senate Cmmittee n Health Educatin Labr & Pensins 4 Center fr Retirement Research at Bstn Cllege - mre - 2/4

3 Abut the NGAM Durable Prtfli Research Center The NGAM Durable Prtfli Research Center, established in 2012, studies risk, asset allcatin and ther investment issues. The center supprts NGAM s belief that investrs shuld pursue lng-term financial bjectives with prtflis designed t limit risk and vlatility. Thrugh its durable prtfli initiative, NGAM prvides financial advisrs with prprietary tls and services t help investrs t make smart use f traditinal assets, such as stcks and bnds, and alternative investments, such as hedging strategies, cmmdities and currencies. Methdlgy The Natixis Glbal Retirement Index is a cmpsite index that cmbines 20 indicatrs gruped int fur majr categries: health; material well-being; quality f life in retirement; and finances. CreData Research, a Lndn-based financial research firm, captured data frm a variety f surces, calculated a mean scre in each categry and cmbined the categry scres fr a final verall ranking f 150 natins. The categries, and the subjects they cmprise, are: Health: Per-capita health spending, life expectancy, the availability f physicians and hspital beds per 1,000 citizens, and the level f nninsured health spending. (Surces: Wrld Bank s Develpment Indicatrs, 2012; Wrld Health Organizatin) Material well-being: Per-capita incme, incme inequality and unemplyment. (Surce: Wrld Bank) Finances: Old-age dependency (the rati f retirees t wrkers), inflatin, interest rates, taxatin level and bank nnperfrming lans. (Surces: Wrld Bank, United Natins) Quality f life: The level f happiness and satisfactin f citizens, as well as the quality f the climate and envirnment. (Surces: Gallup Wrld Pll 2012; Envirnmental Perfrmance Index 2012) Abut Natixis Glbal Asset Management, S.A. Natixis Glbal Asset Management, S.A. is ne f the 15 largest asset managers in the wrld based n assets under management. 5 Its affiliated asset management cmpanies prvide investment prducts that seek t enhance and prtect the wealth and retirement assets f bth institutinal and individual investr clients. Its prprietary distributin netwrk helps package and deliver its affiliates prducts arund the wrld. Natixis Glbal Asset Management, S.A. brings tgether the expertise f multiple specialized investment managers based in Eurpe, the United States and Asia t ffer a wide spectrum f equity, fixed-incme and alternative investment strategies. - mre - 3/4 5 Cerulli Quantitative Update: Glbal Markets 2012 ranked Natixis Glbal Asset Management, S.A. as the 13th largest asset manager in the wrld based n assets under management as f December 31, 2011.

4 Headquartered in Paris and Bstn, Natixis Glbal Asset Management, S.A. s assets under management ttaled $779 billin ( 591 billin) as f December 31, Natixis Glbal Asset Management, S.A. is part f Natixis. Listed n the Paris Stck Exchange, Natixis is a subsidiary f BPCE, the secnd-largest banking grup in France. Natixis Glbal Asset Management, S.A. s affiliated investment management firms and distributin and service grups include: Abslute Asia Asset Management; AEW Capital Management; AEW Eurpe; AlphaSimplex Grup; Aurra Investment Management; Capital Grwth Management; Caspian Private Equity; Darius Capital Partners; Gateway Investment Advisers; H2O Asset Management; Hansberger Glbal Investrs; Harris Assciates; IDFC Asset Management Cmpany; Lmis, Sayles & Cmpany; McDnnell Investment Management; Natixis Asset Management; Ossiam; Reich & Tang Asset Management; Snyder Capital Management; Vaughan Nelsn Investment Management and Vega Investment Managers. Visit ngam.natixis.cm fr mre infrmatin. The infrmatin cntained herein is prvided slely fr infrmatin nly and des nt cnstitute a slicitatin t buy r an ffer t sell any financial prducts r services. This dcument may cntain references t third party cpyrights, indexes, and trademarks, each f which is the prperty f its respective wner. Such wner is nt affiliated with Natixis Glbal Asset Management r any f its related r affiliated cmpanies (cllectively NGAM ) and des nt spnsr, endrse r participate in the prvisin f any NGAM services, funds r ther financial prducts. Press Cntact: NATIXIS GLOBAL ASSET MANAGEMENT BOSTON David Snwden Tel: david.snwden@ngam.natixis.cm # # # 4/ Assets under management (AUM) may include assets fr which nn-regulatry AUM services are prvided. Nn-regulatry AUM includes assets which d nt fall within the SEC s definitin f regulatry AUM in Frm ADV, Part 1.

5 NGAM GLOBAL RETIREMENT INDEX ABOUT THE NATIXIS GLOBAL RETIREMENT INDEX The Natixis Glbal Retirement Index measures hw well retired citizens live in 150 natins, based n measures f health, material well-being, finances and quality f life. The study, released fr the first time, draws n data frm surces including the Wrld Bank and the United Natins. The study was spnsred by Natixis Glbal Asset Management, the wrld s 13th-largest investment firm, which versees $779 billin. 1 THE UNITED STATES The U.S. ranks 19th in the wrld, behind natins including the Czech Republic and Slvakia. The U.S. finished with a final scre f 74%, behind the 87% scre fr Nrway, the N. 1 cuntry in the rankings. Here is hw the U.S. ranked in the categries included in the study: Health (23rd): The U.S. has the wrld s highest per-capita health spending, but lags ther natins in access t care. Americans als trail citizens f mst f the develped wrld in life expectancy. Material well-being (38th): Per-capita incme in the U.S. is amng the highest in the wrld, but the U.S. has a higher degree f incme inequality than many develped natins. The U.S. ranks behind such natins as Pland, Slvakia and Singapre in this categry. Finances (28th): The U.S. has strng and independent financial institutins, but its aging ppulatin raises questins abut the lng-term durability f prgrams such as Scial Security. The U.S. trails Canada, Brazil and Mexic, amng thers, in this categry. Quality f life (26th): Americans express a high level f satisfactin with life, but the U.S. receives lwer scres fr envirnmental measures. Amng the natins ahead f the U.S. are Csta Rica, Italy and Belize. THE RANKINGS Nrway ranks first in the Natixis Glbal Retirement Index, fllwed by Switzerland, Luxemburg, Sweden and Austria. Western Eurpe natins, backed by rbust healthcare and retiree scial prgrams, dminated the tp f the list, taking the first 10 slts. 1 Cerulli Quantitative Update: Glbal Markets 2012 ranked Natixis Glbal Asset Management, S.A. as the 13th largest asset manager in the wrld based n assets under management as f December 31, NGAM Glbal Retirement Index Survey Highlights Page 1 f 4

6 Australia is the highest-ranked nn-eurpean cuntry (in 11th place), fllwed by Israel and Canada. The U.S. finished ahead f the United Kingdm, but trailed the Czech Republic and Slvakia. TABLE: Natixis Glbal Retirement Index Tp 20 Natins 1. Nrway 8. Denmark 14. Belgium 2. Switzerland 9. Germany 15. Japan 3. Luxemburg 10. France 16. Slvenia 4. Sweden 11. Australia 17. Czech Republic 5. Austria 12. Israel 18. Slvakia 6. Finland 13. Canada 19. United States 7. Netherlands 20. United Kingdm METHODOLOGY The Natixis Glbal Retirement Index is a cmpsite index that cmbines 20 indicatrs gruped int fur majr categries: health; material well-being; quality f life in retirement; and finances. CreData Research, a Lndn-based financial research firm, captured data frm a variety f surces, calculated a mean scre in each categry and cmbined the categry scres fr a final verall ranking f 150 natins. The categries (and the subjects they cmprise) are: Health: Per-capita health spending, life expectancy, the availability f physicians and hspital beds per 1,000 citizens, and the level f nninsured health spending. (Surces: Wrld Bank s Develpment Indicatrs, 2012; Wrld Health Organizatin) Material well-being: Per-capita incme, incme inequality and unemplyment. (Surce: Wrld Bank) Finances: Old-age dependency (the rati f retirees t wrkers), inflatin, interest rates, taxatin level and bank nnperfrming lans. (Surces: Wrld Bank, United Natins) Quality f life: The level f happiness and satisfactin f citizens, as well as the quality f the climate and envirnment. (Surces: Gallup Wrld Pll 2012; Envirnmental Perfrmance Index 2012) THE FULL RANKINGS Nrway 2 Switzerland 3 Luxemburg 4 Sweden 5 Austria 6 Finland 7 Netherlands 8 Denmark 9 Germany 10 France 11 Australia 12 Israel 13 Canada 14 Belgium 15 Japan 16 Slvenia 17 Czech Republic 18 Slvakia 19 United States 20 United Kingdm 21 Italy 22 New Zealand 23 Iceland 24 Cyprus 25 Spain NGAM Glbal Retirement Index Survey Highlights Page 2 f 4

7 Malta 27 Krea, Rep. 28 Singapre 29 Panama 30 United Arab Emirates 31 Csta Rica 32 Prtugal 33 Greece 34 Uruguay 35 Cratia 36 Pland 37 Chile 38 Lithuania 39 Kuwait 40 Brazil 41 Argentina 42 Mexic 43 Estnia 44 Mauritius 45 Hungary 46 Saudi Arabia 47 Belarus 48 Ireland 49 Malaysia 50 Qatar Ecuadr 52 El Salvadr 53 Lebann 54 Cuba 55 Albania 56 Belize 57 Peru 58 Rmania 59 Turkey 60 Jrdan 61 Bulgaria 62 Guatemala 63 Thailand 64 Venezuela 65 Latvia 66 Kazakhstan 67 Paraguay 68 Jamaica 69 Dminican Republic 70 Russian Federatin 71 Blivia 72 Ukraine 73 China 74 Tunisia 75 Serbia Mldva 77 Clmbia 78 Kyrgyzstan 79 Vietnam 80 Armenia 81 Macednia, FYR 82 Philippines 83 Guyana 84 Indnesia 85 Trinidad and Tbag 86 Iran, Islamic Rep. 87 Mrcc 88 Libya 89 Gergia 90 Btswana 91 Sri Lanka 92 Bahrain 93 Azerbaijan 94 Egypt, Arab Rep. 95 Nicaragua 96 Bsnia and Herzegvina 97 Hnduras 98 Algeria 99 Suth Africa 100 Las India 102 Syrian Arab Republic 103 Mnglia 104 Uganda 105 Uzbekistan 106 Camern 107 Pakistan 108 Cambdia 109 Rwanda 110 Zambia 111 Ghana 112 Bangladesh 113 Kenya 114 Senegal 115 Iraq 116 Tanzania 117 Tajikistan 118 Nepal 119 Malawi 120 Nigeria 121 Myanmar 122 Djibuti 123 Burkina Fas 124 Benin 125 Burundi Cte d'ivire 127 Cng, Rep. 128 Central African Republic 129 Angla 130 Haiti 131 Namibia 132 Yemen, Rep. 133 Sudan 134 Ethipia 135 Madagascar 136 Mauritania 137 Chad 138 Mzambique 139 Lesth 140 Guinea 141 Tg 142 Turkmenistan 143 Niger 144 Afghanistan 145 Mali 146 Liberia 147 Sierra Lene 148 Cmrs 149 Cng, Dem. Rep. 150 Zimbabwe Fr mre infrmatin frm the Durable Prtfli Cnstructin Research Center, see durableprtflis.cm. Abut Natixis Glbal Asset Management, S.A. Natixis Glbal Asset Management, S.A. is ne f the 15 largest asset managers in the wrld based n assets under management. 2 Its affiliated asset management cmpanies prvide investment prducts that seek t enhance and prtect the wealth and retirement assets f bth institutinal and individual investr clients. Its prprietary distributin netwrk helps package and deliver its affiliates prducts arund the wrld. Natixis Glbal Asset Management, S.A. brings tgether the expertise f multiple specialized investment managers based in Eurpe, the United States and Asia t ffer a wide spectrum f equity, fixed-incme and alternative investment strategies. 2 Cerulli Quantitative Update: Glbal Markets 2012 ranked Natixis Glbal Asset Management, S.A. as the thirteenth largest asset manager in the wrld based n assets under management as f December 31, NGAM Glbal Retirement Index Survey Highlights Page 3 f 4

8 Headquartered in Paris and Bstn, Natixis Glbal Asset Management, S.A. s assets under management ttaled $779 billin ( 591 billin) as f December 31, Natixis Glbal Asset Management, S.A. is part f Natixis. Listed n the Paris Stck Exchange, Natixis is a subsidiary f BPCE, the secnd-largest banking grup in France. Natixis Glbal Asset Management, S.A. s affiliated investment management firms and distributin and service grups include: Abslute Asia Asset Management; AEW Capital Management; AEW Eurpe; AlphaSimplex Grup; Aurra Investment Management; Capital Grwth Management; Caspian Private Equity; Darius Capital Partners; Gateway Investment Advisers; H2O Asset Management; Hansberger Glbal Investrs; Harris Assciates; IDFC Asset Management Cmpany; Lmis, Sayles & Cmpany; McDnnell Investment Management; Natixis Asset Management; Ossiam; Reich & Tang Asset Management; Snyder Capital Management; Vaughan Nelsn Investment Management; and Vega Investment Managers. Visit ngam.natixis.cm fr mre infrmatin. The infrmatin cntained herein is prvided slely fr infrmatin nly and des nt cnstitute a slicitatin t buy r an ffer t sell any financial prducts r services. This dcument may cntain references t third party cpyrights, indexes, and trademarks, each f which is the prperty f its respective wner. Such wner is nt affiliated with Natixis Glbal Asset Management r any f its related r affiliated cmpanies (cllectively NGAM ) and des nt spnsr, endrse r participate in the prvisin f any NGAM services, funds r ther financial prducts. # # # Assets under management (AUM) may include assets fr which nn-regulatry AUM services are prvided. Nn-regulatry AUM includes assets which d nt fall within the SEC s definitin f regulatry AUM in Frm ADV, Part 1. NGAM Glbal Retirement Index Survey Highlights Page 4 f 4