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Australia ranks sixth for retirement outcomes
Australia has ranked sixth globally for retirement outcomes thanks to its ‘quality of life’ and ‘finances in retirement’ ratings, according to the 2017 Natixis Global Retirement Index.
The Natixis index found Australia trailed behind Norway, Switzerland, Iceland, Sweden, and New Zealand.
While the country placed fifth for finances and ninth for quality of life, it fell behind in the sub-indices of material wellbeing and health.
Natixis Global Asset Management in Australia managing director, Kevin Haran, said the index revealed room for improvement for material wellbeing which measured retirees’ ability to support themselves based on income per capita.
“This suggests that there still needs to be greater individual engagement with super in order for retirees to achieve the outcomes they desire,” Haran said.
Haran noted that innovation from asset managers could help Australians achieve better retirement outcomes.
“Australia’s mandatory superannuation policies are lauded by policy-makers around the world in terms of their improvement to retirement outcomes. However, at an individual level, many people don’t have a clear idea of what is needed to retire comfortably,” he said.
“The GRI aims to help spark the initial conversation about retirement plans. The asset management industry has a vital role to play here in helping to educate investors; understanding their goals, and constructing durable portfolios to respond to market factors and each individual’s risk tolerance.”
Australia’s improvement from 13th to ninth for its ‘quality of life’ came off the back of environmental progress primarily due to declines in CO2 emissions and increased prevalence of renewable electricity.
“From a local perspective, we’ve seen an increased demand for ESG [environmental, social, governance] offerings within superfunds’ offerings,” Haran said.
The index said the high ranking in overall finances demonstrated positive signs for the purchasing power of retirees.
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