Compared to retirees from other developed countries, former workers from the United States are getting the short end of the stick, a new report states. According to Natixis Global Asset Management's Global Retirement Index, the United States barely cracks the top 20 nations when it comes to retirement security. The index ranks 150 countries on 20 retirement-related measures including health, wealth and quality of life.
Switzerland topped the list, followed by several other European nations. Other countries that outranked the United States include New Zealand, Canada and South Korea.
So what's wrong with the United States? According to Natixis' CEO John Hailer, most of the blame can be put on the fact that most Americans do most of their retirement saving through their employees' 401(k) plan.
"The responsibility for financial security in retirement is falling even more heavily on individuals than ever before and this trend is likely to continue as government resources become more scarce," Hailer said in a press release. "It is becoming increasingly apparent that to ensure financial security in retirement, individuals need to set personal goals and view planning and saving for retirement as a serious, conscious and strategic pursuit."
Other issues plaguing the United States that the report pointed to include the federal government's high debt and the artificially low interest rates that don't allow savers to build wealth.
This recent analysis just goes to show you that traditional saving methods will not generate the wealth that you need for retirement. Now may be the time to consider alternative retirement planning methods.