Across the globe, retirement is lasting far longer, posing a financial challenge for individuals and institutions. So far, policies have not adapted to this change.
Our research paper "Global Demographics and Retirement Implications" analyzes the impacts of demographic change and what this means for society and retirement savings systems.
We are switching gears. The way we live, work, consume, and save
are changing not only in our market, but across the globe.
As analyzed in our research, these changes are accelerating within retirement savings schemes as the responsibility for funding retirement increasingly falls to the individual, thanks to a shift from traditional defined-benefit pensions to rising defined-contribution constructs. Lifestyle and life-expectancy changes coupled with increased savings autonomy suggest a new retirement paradigm; however, attitudes, policies, and infrastructures haven’t kept pace, creating the potential for significant strain on social systems. But there is an opportunity for governments, employers, and individuals to get ahead of and correct for the societal stress that could come from mismatched population and retirement savings infrastructure dynamics.
At State Street, we have experience with preparing each vital constituent for the new era of retirement, from participants, to employers, to governments seeking policy insights. To learn more about how our interdisciplinary team can support your organization in facilitating change, contact us.
The World is Aging
Not only are people living longer, but older people are quickly
becoming the largest cohort across the globe.