Despite the fact that the US retirement system is worth $39 trillion, it is not as good as some may expect. It got only a C+ grade according to the Mercer CFA Institute Global Pension Index.
What’s more, the country is not even in the top 10 nations with the most advanced retirement system. It was ranked 17th following Iceland, Norway, the Netherlands, Australia, and other developed countries with higher marks on the list.
Iceland has managed to top the list. The country delivers the most favorable and generous retirement benefits for the biggest part of the population. The nation boasts a small number of old-aged people living in poverty in addition to one of the highest retirement incomes. Denmark and the Netherlands have also got an A grade.
Oppositely, America comes with a high level of poverty. 28% of US citizens aged from 75 live from hand to mouth. Experts say the retirement system must be reset accordingly. Today, not all people can count on retirement with proper financial security. It sounds quite strange taking into account almost $40 trillion invested in this sector. Some people do well while others are left behind. The situation looks very uneven.
On the one hand, the retirement system is not set up properly. On the other hand, some people do not even have a workplace retirement plan, which is one of the main retirement benefits in the long run. Only half of all employees (53% to be more precise), have access to a retirement plan offered by an employer. In 2020, more than a half of Americans have got into the savings coverage gap.
It seems like more and more workers prefer saving for retirement outside their offices and workplaces. We have already told you a story about a man who managed to save $1 million for retirement at the age of 35. Have a look at his tips to become an only retiree with a solid sum on the banking account.
What you can really do to avoid a saving gap is to start saving right now. MTrading lets you launch your saving and investing campaign with just a few cents and retire with a solid sum on the banking account!