The Reality of Diminishing Retirement Security

Natixis Investment Managers recently conducted its annual Global Survey of Individual Investors. It revealed that about eight in 10 investors (81%) believe they must fund their own retirement as opposed to relying on private and public pensions.

This year's findings reveal a significant rise from 2015 when just 67% of investors felt similarly. “In the end, their isolation is leading many to despair about their chances of achieving retirement security,” explained Natixis. The survey included 8,550 investors across 24 countries.

The current feeling of despondency around retirement resulted from the compound effects of both long- and short-term trends. On the long-term side, the move away from defined benefit pensions to defined contribution ones, alongside rapidly growing public debt, created pressure for investors. Short-term challenges such as the pandemic, market volatility, and inflation created ongoing stressors for investors and their retirement portfolios. Notably, investors across all wealth bands expressed similar growing concerns regarding their retirement.

No. of investors waiting on a miracle grew almost evenly across wealth bands

Image source: Natixis Investment Managers

“In just two short years, the number of individuals who thought it would take a miracle to achieve retirement security increased from 40% in 2021 to 45% in 2023,” Natixis wrote. “The fact that this is among affluent investors with $100,000 or more in investable assets shows just how pervasive funding concerns are.”