There was an exam on the world's retirement systems and it doesn't look like the U.S. studied too hard. 😵💫 We passed, but not by much. Mom's not too happy. 🤬📓
A new ranking of retirement systems in several major countries just dropped. 🔢 Our nation received a C+, lagging significantly behind places like the Netherlands, Australia, and Sweden. Looks like we might have to *actually* study during study hall. 😬
Here’s Five Fast Facts on the state of retirement in the U.S.:
- 📉 Dank Rankings - According to a recent global retirement report, the U.S. came in at number 22 out of 47 countries, slightly lower than it was last year.
- 💸 Retirement Optional - One major factor that sets our country apart from those who rank higher is that employers here aren't required to provide workers with retirement plans. When you're automatically enrolled in an employer-sponsored 401k, it's easier to save. Without one, Americans are left to sign up and fund their own individual retirement account, which takes a bit more time, energy, and financial knowledge.
- 👛 Worn Out Wallets - Another reason the U.S. received a less-than-stellar score is that a lot of our retirees are stretched thin financially. High inflation over the last few years really packed a punch. Many in retirement were forced to tap into their savings to make ends meet or head back to work to stay afloat.
- 🥇 Going Dutch - The Netherlands ranks number one on the list, and for good reasons. All workers in the Netherlands have both a private and public pension account. The public pension program funds a flat rate to all the country's retirees, depending on how long they've lived and worked in the country. On top of the pension plans, citizens can make extra contributions to their retirement income on their own.
- 🆘 Don't Cry For Me - Who's at the bottom of the list? Argentina. They have a public pension plan, but it's pretty limited. They also have voluntary employer-based plans that are far worse than what we're offered here in the states.
🔥Bottom line: Our stinky retirement ranking isn't an excuse not to save. If you have the extra cash, make sure you're taking advantage of your employer's retirement benefits or start up an individual account. Contributing a small part of every paycheck goes a long way. If you're a Baby Boomer, chances are you're either living the retired life or trying to crack the code ASAP. Make sure you're not making these money mistakes!
Do you have a solid retirement strategy in place?
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