The word “retirement” can invoke very different emotions. Those who are on track to achieve their goals likely view it as the light at the end of the tunnel, while for those who are less prepared, it likely appears as unattainable as a carrot on a stick. As people around the world live longer and aging populations increase, the easiest way to judge how ready we are for retirement is seeing how closely we land to our ideal retirement ages. According to the results of a recent Nielsen Global Survey about Aging, just under half (47%) of global respondents say that their planned/actual retirement age is the same as their ideal retirement age. More than twice as many say their ideal retirement age is younger (36%) than what they plan compared to those who say it’s older (17%). So what’s causing the disconnect between wanting and needing to stay employed as we age? It’s likely a matter of finances.
Overall, 30 percent of global respondents don’t believe they will be better financially equipped when they retire than their parents were when they retired. More than half in Europe (56%) and nearly four in 10 in North America (38%) believe they will not have a comparable nest egg to the one their parents enjoyed in retirement. Conversely, more than three-quarters of respondents in developing regions expect a more secure financial future. The majority of respondents in Asia-Pacific (82%), Latin America (79%) and the Middle East/Africa (74%) say their finances will be more substantial than those of the previous generation.
This reversal of fortunes provides context for why greater percentages of respondents in North America and Europe are planning to work well into their 70s. Forty-one percent of North Americans and 30 percent of Europeans plan to retire past the age of 65, compared to the global average of 23 percent. Asia-Pacific respondents are keeping their eye on the prize, and skew youngest when it comes to retirement intentions, with three-quarters (74%) planning to retire between the ages of 50 and 65.
A combination of personal savings and investments will fund retirement for more than half of respondents in Asia-Pacific (56%) and in the Middle East/Africa (54%). Almost half of Europeans (49%) will rely on government-run plans, which is almost double the global average of 26 percent. In North America and Latin America, a mix of company retirement plans, government-run plans and personal saving/investments will serve as these consumers’ primary sources of income in retirement.
The report also discusses:
For more detail and insight, download Nielsen’s Global Aging report.
The findings in this survey are based on respondents with online access across 60 countries. While an online survey methodology allows for tremendous scale and global reach, it provides a perspective only on the habits of existing Internet users, not total populations. In developing markets where online penetration has not reached majority potential, audiences may be younger and more affluent than the general population of that country. Additionally, survey responses are based on claimed behavior, rather than actual metered data.