2024 Global Retirement Security: The Big Picture
Recent analysis shows a steady backdrop for retirement conditions, with many developed countries making incremental gains in retirement security compared with prior years. The latest research from Natixis Investment Managers finds that this year’s Global Retirement Index (GRI) keeps the leading countries largely in place across several dimensions, a sign that the overall outlook is holding up. At the same time, the personal side tells a different story: even as national scores stabilize or improve, more people worry about how they’ll fund retirement on their own.
Where the United States Moved—and Why
The United States slipped in the Global Retirement Index, moving from 20th to 22nd in 2024 as its overall score edged down from 71% to 70%. What changed? Lower marks in Material Well-being and Quality of Life. Those drops reflect the drag from persistently high unemployment rates and a decline in reported social happiness—especially among younger adults. Still, there are offsets. The U.S. economy posted 2.5% GDP growth, supported in part by strong immigration, and a potential easing of rates later in the year could offer some relief to borrowers if it materializes.
How the Global Retirement Index Is Built
The Global Retirement Index is a benchmark designed to gauge retirement security across countries in a consistent, apples-to-apples way. Produced in collaboration with Core Data Research, the GRI blends financial indicators with real-world variables that shape life in retirement, including access to healthcare, climate conditions, quality of governance, and overall happiness. Methodologically, the index averages scores across 18 metrics grouped into four pillars: Finances in Retirement, Material Well-being, Health, and Quality of Life. Together, these pillars create a composite view of how well a country supports retirees today and over time.
What Natixis Is Seeing This Year
Dave Goodsell, Executive Director at the Natixis Center for Investor Insight, frames this year’s picture as a classic good news/bad news moment. Inflation looks like it’s stabilizing—good news for purchasing power—but unemployment and public debt are rising at the same time, creating new pressures. That tension means individuals may need to stay nimble, revisit plans, and adjust as conditions shift.
How the U.S. Fared Across the Subindices
A closer look at the four pillars shows a mixed picture for the United States:
- Finances in Retirement: The U.S. holds 15th place. Stable positioning here reflects relatively favorable moves in tax burdens and interest rates, with potential rate cuts on the horizon that could further influence retirement income decisions.
- Quality of Life: Down to 23rd. The decline tracks with lower reported happiness and weakening social connections, both of which weigh on day-to-day life in retirement.
- Material Well-Being: At 24th. Higher unemployment is the main headwind, even as post-pandemic GDP growth remains robust, aided by immigration.
- Health: Ranked 27th. Life expectancy challenges persist, though the country continues to show strength in health expenditure and related capacity measures.
Why People Feel More Responsible for Retirement
Even as national scores improve, personal concerns are rising. Survey results show a marked shift toward self-reliance: the share of individuals who expect to fund retirement primarily from personal savings rather than public or private pensions rose from 63% to 77% between 2015 and 2023. There’s a subtle countertrend, too. Fewer people now say it will take a miracle to retire securely, suggesting that while responsibility feels heavier, confidence in practical steps may be growing.
Key Risks Shaping Today’s Retirements
Risks haven’t disappeared; they’ve changed shape:
- Interest Rates: Ultra-low rates once challenged retirees seeking income. Now, a higher-rate backdrop presents new choices—and new trade-offs—about durable income paths.
- Inflation: While inflation appears to be normalizing, it’s still top of mind. In fact, 84% of investors view the recent bout of inflation as a direct threat to their retirement plans.
- Public Debt: Rising public debt across OECD countries raises uncertainty about future benefits, prompting concern about how long-term promises will be funded.
- Personal Responsibility: The desire for a secure retirement is universal, yet many people still struggle to set realistic goals, align expectations, and stick with a plan.
Designing More Personal Retirement Solutions
Given the shifting landscape, one-size-fits-all approaches fall short. Financial providers are being pushed to build strategies that reflect real human needs—timelines, risk tolerance, cash flow demands, and access to both public and private markets. Liana Magner, Executive Vice President and Head of Retirement and Institutional for Natixis Investment Managers, stresses the need for personalized investment solutions that help individuals navigate these choices more confidently and efficiently. The aim is simple enough: tie portfolios to the life they need to support. And keep adjusting as life—and markets—change.
Frequently Asked Questions
What is the Global Retirement Index, in plain terms?
It’s a composite score that compares countries on retirement security. The index blends financial data with nonfinancial factors like healthcare access, climate, governance, and overall happiness to show how supportive each country is for retirees.
How did the United States perform in the 2024 ranking?
The U.S. moved from 20th to 22nd place, and its score slipped from 71% to 70%. Lower marks in Material Well-being and Quality of Life drove the change, even as the economy grew 2.5%.
What obstacles are most pressing for retirement right now?
Key challenges include the implications of today’s interest-rate levels, lingering concerns about inflation, rising public debt that could affect future benefits, and the growing expectation that individuals must shoulder more of the funding burden.
How are GRI scores actually calculated?
Scores are averaged across 18 metrics grouped into four pillars: Finances in Retirement, Material Well-being, Health, and Quality of Life. The data is produced with Core Data Research and brings together both financial and quality-of-life indicators.
What practical steps can I take to prepare for retirement?
Set clear, realistic goals; save and invest consistently; and revisit your plan as conditions change. Pay attention to rate and inflation trends, and consider diversified approaches that align with your time horizon and income needs.
