America Is FINALLY Doing Something Right

Steve McDonald By Steve McDonald, Bond Strategist, The Oxford Club

Slap In The Face Award

Transcript:

Here’s a light slap for the U.S. and its retirement preparedness. Actually, most of this is a pat on the back for us… sort of.

Despite the terrible job the boomers have done preparing for retirement, the U.S. as a whole is literally on top of the world when it comes to getting ready for our golden years.

According to the 2017 Aegon Retirement Readiness Survey…

  • 57% of Americans report that they are habitual savers versus 39% globally.
  • 47% of Americans have a retirement backup plan if they can’t work; only 33% of the world population has one.
  • 43% of Americans are confident that they’ll be able to maintain their lifestyles when they retire as compared to just 25% of the rest of the world.

And as abysmal as this number is, 26% of Americans think they’re saving enough for retirement… and that’s almost twice the percentage of the rest of the world.


Now, besides the fact that most of these numbers fly in the face of all the studies and surveys I have read over the past five years, the number that jumps out at me most is 26%.

How can 43% be confident that they can support their current lifestyles in retirement when only 26% feel they’re saving enough?

I don’t get that one.

But anyway, the country that came out on top as being the most confident in its retirement readiness was India. That’s a stunner for me.

The explanation offered was that 43% of Indians report that their retirement income will come from their own savings, not government payments or subsidies. And the Indian culture is one of the oldest on Earth. Maybe they’ve learned something about governments that we haven’t.

Indians were also ranked No. 1 for savings plans that were on track.

But where the Indians really outshine everyone is in mindfulness and meditation. It seems that they attribute their high sense of financial security to meditation and mental exercises.

The Indians credit meditation with keeping the important things in life in perspective, and less than 24% of the U.S. does it.

Well, some of the answers to our retirement crisis could be perspective and mindfulness, but I’d kick your savings plan in the butt before I fell back on meditation.

Good investing,

Steve