The French investment bank Natixis says Canada offers one of the highest levels of retirement security in the world.
In its Global Retirement Index for 2016, Natixis ranked 43 countries according to four factors, namely finances, material wellbeing, health, and quality of life in retirement. Canada made it into the top ten, behind Norway (1), Switzerland (2), Iceland (3), New Zealand (4), Sweden (5), Australia (6), Germany (7), The Netherlands (8) and Austria (9).
Low interest rates
While Canada has a high per-capita income, low levels of income inequality, and spends substantial amounts on healthcare, the study found that our low interest rates and relatively high levels of government debt are not as favorable for retirees. "The former makes it difficult for older Canadians to keep up with increased living costs; the latter could affect the country’s ability to finance social programs over the long term," reads the report.
Natixis also found that people are increasingly aware that they will not be able to rely on government benefits alone. Globally, 77% of those surveyed agreed that retirement funding is increasingly their own responsibility; in Canada, 72% of the respondents agreed with this statement.
Strong social programs
“Canada is one of the world’s leaders in retirement security, benefitting from both strong social programs that support retirees and proactive policies that encourage citizens to save for the future,” comments Abe Goenka, CEO of Natixis Global Asset Management Canada. “While we can be proud of what we have achieved, we can still learn from other global leaders to further strengthen our retirement system and help make savings a reality.”