Natixis Investment Managers’ Global Retirement Index (GRI) has also rated Australia third for retiree finances in its latest annual index – but with a warning.
The study rated 44 countries on the factors that drive retirement security and identified five critical risks to retirement security in Australia:
- Interest Rates
- Public debt
- Economic inequality
Damon Hambly, CEO of Natixis Investment Managers in Australia, said these risks could lead to Australian retirees focusing on the prospect of living for longer on lower incomes.
“Possible solutions may include a higher retirement age, and for retirees to reconsider how they think about retirement – possibly continuing to work into their retirement,” Mr Hambly said.
“The asset management industry also has a role to play in taking the lead on products that will address the long-term needs of individuals and institutions to have a real impact on global retirement security.”
Jean Raby, CEO of Natixis Investment Managers Global, added that COVID has had a big effect on the prospects for retirees.
“Balancing the needs of current and future retirees with other public policy demands has long been one of the most intractable issues for nations around the world, and the global pandemic and its economic fallout have only compounded the challenge,” she said.
Given the Federal Government’s determination to stave off the economic impact of recession here, the risk to Australian retirees – for the time being at least – appears to be under control.