Retirement Security: Steady Signals in a Tough Year
Even in a challenging year, retirement conditions have held up better than many expected. Data from Natixis Investment Managers (Natixis IM) shows signs of resilience, with their Global Retirement Index (GRI) pointing to a more stable outlook across many developed countries. The same nations continue to lead the rankings for a second straight year, a sign that core systems are holding. At the same time, many people are feeling the strain day to day and, more than ever, see that funding retirement will largely fall on their own shoulders.
How Canada Fared in the Global Retirement Index
Canada posted a solid overall score of 74% in this year’s GRI. Still, it slipped one place to 13th for overall retirement security, a move tied mostly to a softer job market. Beneath that headline, the picture is more nuanced: Canada placed in the top 10 for both health and finances in retirement, and its Quality of Life performance remained strong enough to land in the top 20. In other words, the foundations look sturdy even if the labor backdrop is creating headwinds.
How the GRI Measures Retirement Readiness
The GRI acts as a global yardstick for what it takes to enjoy a secure retirement. It assesses financial stability and access to affordable healthcare alongside environmental factors, the quality of governance, and the overall happiness of the population. Rankings come from an aggregate score built across four sub-indices: Finances in Retirement, Material Well-Being, Health, and Quality of Life. Looking across these pillars helps reveal where countries are resilient—and where pressure is building.
What Natixis IM Is Seeing
Dave Goodsell, Executive Director at the Natixis Center for Investor Insight, noted that the results show a striking level of consistency year over year, even as clear gaps remain. He pointed to the balancing act countries face right now—taming inflation, supporting employment, and fostering growth—without tipping the scales in the wrong direction.
Canada’s Results by Sub-Index
Here’s where Canada stands across the four pillars that make up the GRI:
- 10th in Health: Up from last year, Canada moved into the 10th spot, supported by gains in life expectancy and shifts in health-related spending dynamics. When people live longer and can access care, retirement feels more secure.
- 10th for Finances in Retirement: Canada held steady in 10th. Favorable expectations for inflation and interest rates helped, even as some peer countries made bigger strides. Stability counts, especially when retirees are budgeting across decades.
- 17th in Quality of Life: Canada maintained its rank, with a modest uptick in environmental measures. The day-to-day experience matters: clean surroundings, safe communities, and social cohesion all support retirement well-being.
- 23rd in Material Well-Being: This is where the drag showed. Canada moved down from 19th, reflecting an expected 6.1% unemployment rate in 2024 amid softer labor market conditions. When jobs slow, household finances can get squeezed.
The Rising Push for Personal Responsibility
The overall retirement outlook may be stabilizing, but how people feel about their own prospects has shifted meaningfully. According to the Natixis Global Survey of Individual Investors, from 2015 to 2023 the share of people who believe they must fund retirement on their own rose from 57% to 81%. Over that same period, the share who say achieving retirement security will take a miracle moved from 25% to 33%.
One number lands with particular weight: 20% of respondents said that even $1 million in savings wouldn’t be enough to make retirement affordable. It’s a reminder that comfort in retirement depends on more than a round number—it depends on costs, timing, and choices made along the way.
Today’s Key Risks for Retirement Investors
Several risks are front and center for anyone planning retirement right now. None are new, but all feel closer to the surface:
- Interest Rate Changes: A higher-rate environment reshapes the trade-off between risk and return. Retirees and near-retirees—many of whom hold sizable cash balances in money market funds and similar instruments—face reinvestment decisions that can affect both income and capital over time.
- Inflation: While recent trends have cooled, the spike we’ve lived through underscored how quickly purchasing power can erode. Plans that adapt—by revisiting spending needs and portfolio mix—have a better chance of staying on course.
- Public Debt Concerns: Rising public debt has raised questions about the future reliability of government programs and benefits that many retirement plans assume will be there. The uncertainty alone can complicate long-term planning.
- Investor Behavior: Expectations matter. Overly optimistic return assumptions or underestimating costs can derail even careful plans. Realistic goals, reviewed regularly, tend to travel farther.
Meeting the Challenge—One Investor at a Time
As more people take an active role in shaping their retirement, the support they receive needs to fit their situation—not a template. Liana Magner, Executive Vice President and Head of Retirement and Institutional for Natixis IM, underscored the shift toward personalized solutions that match individual needs and evolving economic conditions. It’s a practical way to reduce the risk of tomorrow’s problems: align the plan with the person, and keep adjusting as life changes.
Frequently Asked Questions
What does the Global Retirement Index (GRI) measure?
The GRI evaluates the conditions that support a secure retirement, combining financial stability, access to affordable healthcare, environmental and governance quality, and overall happiness into a single, comparable score across countries.
Why did Canada slip in the overall rankings this year?
Canada’s overall rank dipped largely because of a softer labor market. The expected unemployment rate and related pressures weighed on the Material Well-Being score, even as other pillars held up.
Where does Canada perform best within the GRI?
Canada ranks in the top 10 for Health and for Finances in Retirement. It also stays in the top 20 for Quality of Life, pointing to solid foundations despite labor market headwinds.
How are individuals’ views on retirement changing?
From 2015 to 2023, more people came to believe they’ll need to fund retirement on their own, moving from 57% to 81%. Over the same span, the share who feel it may take a “miracle” to retire securely rose from 25% to 33%.
What should investors keep in mind when planning for retirement now?
Plan for change. Account for interest rate shifts, inflation’s bite, and uncertainty around public benefits. Most of all, set realistic expectations and revisit them regularly so your plan can adjust as conditions do.
