Global Attitudes Towards Retirement
There’s a reason retirement is often referred to as the golden years.
Many view retirement as a welcome reward following a successful career. The transition, however, is not always easy. An enjoyable retirement is often dictated by the amount of money people have set aside.
Today’s infographic from Raconteur visualizes attitudes towards retirement around the world, comparing expectations and actualities for retirement income.
Does reality meet their expectations?
Income Expectations Vary by Country
A global survey by asset manager Schroders—looking at 22,000 investors from 30 countries—highlights that retirement income often falls short of expectations.
Here’s what non-retirees (55+ in age) expect to make in retirement as a percentage of their salary, compared to the actual incomes generated by retirees:
|Country||Expectation (% of salary)||Actual (% of salary)||Difference|
|🇭🇰 Hong Kong||80||44||-36|
|🇰🇷 South Korea||67||45||-22|
|🇿🇦 South Africa||80||59||-21|
*Denotes countries with small sample sizes.
Not having enough money at retirement is a nearly universal issue, and 51% of employees with a workplace pension are worried that they won’t make enough to live their ideal retirement life.
Of course, there are always notable exceptions to every rule.
In India, for example, the reality of retirement is often better than anticipated. Non-retirees expect that 71% of their annual salary will provide what is needed to live comfortably in retirement, but in practice they get 96% of their salary in retirement—far higher than they thought.
Most Important Aspirations
The world is divided when it comes to working into retirement. The majority of people want to spend their retirement doing non-work related activities:
- Traveling: 60%
- Spending more time with friends and family: 57%
- Pursuing new hobbies: 49%
- Volunteer work: 27%
That said, 59% of employees in Italy, the U.S., and Australia expect to continue working while retired, while only 32% in the Netherlands have the same expectation. This may be partially due to the strength of the Dutch pension system, which is rated as one of the best in the world.
A Changing Retirement Landscape
The reality of retirement continues to evolve by country and by generation.
Today, only 15% of the population in developed countries is above 65 years of age—but by 2050, the proportion will more than double. People between the ages of 40 and 50 are known as the “Sandwich Generation” because they are simultaneously supporting their retired parents and their own children.
While increasing life expectancy affords people the luxury of spending more time with loved ones, will we be able to afford to live longer?
Basic Income Experiments Around the World
Amid the pandemic, the idea of Universal Basic Income has been gaining steam with policymakers. Where has it been tried, and has it worked?
Basic Income Experiments Around the World
What if everyone received monthly payments to make life easier and encourage greater economic activity? That’s the exact premise behind Universal Basic Income (UBI).
The idea of UBI as a means to both combat poverty and improve economic prospects has been around for decades. With the COVID-19 pandemic wreaking havoc on economies worldwide, momentum behind the idea has seen a resurgence among certain groups.
Of course, the money to fund basic income programs has to come from somewhere. UBI relies heavily on government budgets or direct funding to cover the regular payments.
As policymakers examine this trade-off between government spending and the potential benefits, there is a growing pool of data to draw inferences from. In fact, basic income has been piloted and experimented on all around the world—but with a mixed bag of results.
What Makes Basic Income Universal?
UBI operates by giving people the means to meet basic necessities with a regular stipend. In theory, this leaves them free to spend their money and resources on economic goods, or searching for better employment options.
Before examining the programs, it’s important to make a distinction between basic income and universal basic income.
With these parameters in mind, and thanks to data from the Stanford Basic Income Lab, we’ve mapped 48 basic income programs that demonstrate multiple features of UBI and are regularly cited in basic income policy.
Some mapped programs are past experiments used to evaluate basic income. Others are ongoing or new pilots, including recently launched programs in Germany and Spain.
Recently, Canada joined the list as countries considering UBI as a top policy priority in a post-COVID world. But as past experiments show, ideas around basic income can be implemented in many different ways.
Basic Income Programs Took Many Forms
Basic income pilots have seen many iterations across the globe. Many paid out in U.S. dollars, while others chose to stick with local currencies (marked by an asterisk for estimated USD value).
|Program||Location||Recipients||Payment Frequency||Amount ($US/yr)||Dates|
|Abundant Birth Project||San Francisco, U.S.||100||Monthly||$12,000-$18,000||TBD|
|Alaska Permanent Fund Dividend||Alaska, U.S.||667,047||Annually||$1,000-$2,000||1982-Present|
|Baby's First Years||New York, U.S.||1,000||Monthly||$240-$3,996||2017-2022|
|Baby's First Years||New Orleans, U.S.||1,000||Monthly||$240-$3,996||2017-2022|
|Baby's First Years||Omaha, U.S.||1,000||Monthly||$240-$3,996||2017-2022|
|Baby's First Years||Twin Cities, U.S.||1,000||Monthly||$240-$3,996||2017-2022|
|Basic Income for Farmers||Gyeonggi Province, South Korea||430,000||Annually||$509*||TBD|
|Basic Income Grant (BIG) Pilot||Omitara, Namibia||930||Monthly||$163*||2008-2009|
|Basic Income Project||Not Disclosed||3,000||Monthly||$600-$12,000||2019-Present|
|Eastern Band of Cherokee Indians Casino Revenue Fund||Jackson County and area, NC, U.S.||15,414||Biannually||$7,000-$12,000||1996-Present|
|Eight Pilot Project||Busibi, Uganda||150||Monthly||$110-$219*||2017-2019|
|Evaluation of the Citizens' Basic Income Program||Maricá, Brazil||42,000||Monthly||$360*||2019-Present|
|Finland Basic Income Experiment||Finland||2,000||Monthly||$7,793*||2017-2018|
|Gary Income Maintenance Experiments||Gary, U.S.||1,782||Monthly||$3,300-$4,300||1971-1974|
|Give Directly||Western Kenya||20,847||Monthly or Lump Sum||$274||2017-2030|
|Give Directly||Saiya County, Kenya||10,500||Lump Sum||$333||2014-2017|
|Give Directly||Rarieda District, Kenya||503||Monthly or Lump Sum||$405-$1,525||2011-2013|
|Human Development Fund||Mongolia||2,700,000||Monthly||$187||2010-2012|
|Ingreso Mínimo Vital||Spain||850,000||Monthly||$6,535-$14,358*||2020-Present|
|Iran Cash Transfer Programme||Iran||75,000,000||Monthly||$48||2010-Present|
|Madhya Pradesh Unconditional Cash Transfers Project||Madhya Pradesh, India||5,547||Monthly||$26-$77*||2011-2012|
|Magnolia Mother's Trust||Jackson, MS, U.S.||80||Monthly||$12,000||2019-Present|
|Manitoba Basic Annual Income Experiment||Winnipeg, Canada||1,677||Monthly||$3,842-$5,864*||1975-1978|
|Manitoba Basic Annual Income Experiment||Dauphin, Canada||586||Monthly||$3,842-$5,864*||1975-1978|
|My Basic Income||Germany||120||Monthly||$17,160*||2020-2023|
|New Jersey Income Maintenance Experiment||Jersey City, U.S.||1,357||Biweekly||Varied||1968-1972|
|New Jersey Income Maintenance Experiment||Paterson, NJ, U.S.||1,357||Biweekly||Varied||1968-1972|
|New Jersey Income Maintenance Experiment||Passaic, NJ, U.S.||1,357||Biweekly||Varied||1968-1972|
|New Jersey Income Maintenance Experiment||Trenton, NJ, U.S.||1,357||Biweekly||Varied||1968-1972|
|New Jersey Income Maintenance Experiment||Scranton, PA, U.S.||1,357||Biweekly||Varied||1968-1972|
|Ontario Basic Income Pilot||Hamilton and area, Canada||2,748||Monthly||$13,112-$18,930* (-50% income)||2017-2018|
|Ontario Basic Income Pilot||Thunder Bay and area, Canada||1,908||Monthly||$13,112-$18,930* (-50% income)||2017-2018|
|Ontario Basic Income Pilot||Lindsay, Canada||1,844||Monthly||$13,112-$18,930* (-50% income)||2017-2018|
|Preserving Our Diversity||Santa Monica, U.S.||250||Monthly||$7,836-$8,964||2017-Present|
|Quatinga Velho||Quatinga, Mogi das Cruces, Brazil||67||Monthly||$197*||2008-2014|
|Rural Income Maintenance Experiment||Duplin County, NC, U.S.||810||Monthly||Varied (NIT)||1970-1972|
|Rural Income Maintenance Experiment||Iowa, U.S.||810||Monthly||Varied (NIT)||1970-1972|
|Scheme $6,000||Hong Kong, China||4,000,000||Annually||$771*||2011-2012|
|Seattle-Denver Income Maintenance Experiment||Seattle, U.S.||2,042||Monthly||$3,800-$5,600||1971-1982|
|Seattle-Denver Income Maintenance Experiment||Denver, U.S.||2,758||Monthly||$3,800-$5,600||1971-1982|
|Stockton Economic Empowerment Demonstration||Stockton, U.S.||125||Monthly||$6,000||2019-Present|
|Transition-Age Youth Basic Income Pilot Program||Santa Clara, CA, U.S.||72||Monthly||$12,000||2020-2021|
|Wealth Partaking Scheme||Macau, China||700,600||Annually||$750-$1,150||2008-Present|
|Youth Basic Income Program||Gyeonggi Province, South Korea||125,000||Quarterly||$848*||2018-Present|
|Citizen's Basic Income Pilot||Scotland||TBD||Monthly||TBD||TBD|
|People's Prosperity Guaranteed Income Demonstration Pilot||St. Paul, U.S.||150||Monthly||$6,000||2020-2022|
Many of the programs meet the classical requirements of UBI. Of the 48 basic income programs tallied above, 75% paid out monthly, and 60% were paid out to individuals.
However, for various reasons, not all of these programs follow UBI requirements. For example, 38% of the basic income programs were paid out to households instead of individuals, and many programs have paid out in lump sums or over varying time frames.
Interestingly, the need for better understanding of basic income has resulted in many divergences between programs. Some programs were only targeted at specific groups like South Korea’s Basic Income for Farmers program, while others like the Baby’s First Years program in the U.S. have been experimenting with different dollar amounts in order to evaluate efficiency.
Other experiments based payments made off of the total income of recipients. For example, in the U.S., the Rural Income and New Jersey Income Maintenance Experiments paid out using a negative income tax (return) on earnings, while recipients of Canada’s Ontario Basic Income Pilot received fixed amounts minus 50% of their earned income.
Varying Programs with Varied Results
So is basic income the real deal or a pipe dream? The results are still unclear.
Some, like the initial pilots for Uganda’s Eight program, were found to result in significant multipliers on economic activity and well-being. Other programs, however, returned mixed results that made further experimentation difficult. Finland’s highly-touted pilot program decreased stress levels of recipients across the board, but didn’t positively impact work activity.
The biggest difficulty has been in keeping programs going and securing funding. Ontario’s three-year projects were prematurely cancelled in 2018 before they could be completed and assessed, and the next stages of Finland’s program are in limbo.
Likewise in the U.S., start-up incubator Y Combinator has been planning a $60M basic income study program, but can’t proceed until funding is secured.
A Post-COVID Future for UBI?
In light of COVID-19, basic income has once again taken center stage.
Many countries have already implemented payment schemes or boosted unemployment benefits in reaction to the pandemic. Others like Spain have used that momentum to launch fully-fledged basic income pilots.
It’s still too early to tell if UBI will live up to expectations or if the idea will fizzle out, but as new experiments and policy programs take shape, a growing amount of data will become available for policymakers to evaluate.
The $88 Trillion World Economy in One Chart
The world’s total GDP crested $88 trillion in 2019—but how are the current COVID-19 economic contractions affecting its future outlook?
The $88 Trillion World Economy in One Chart
The global economy can seem like an abstract concept, yet it influences our everyday lives in both obvious and subtle ways. Nowhere is this clearer than in the current economic state amid the throes of the pandemic.
Editor’s note: Annual data on economic output is a lagging indicator, and is released the following year by organizations such as the World Bank. The figures in this diagram provide a snapshot of the global economy in 2019, but do not necessarily represent the impact of recent developments such as COVID-19.
Top 10 Countries by GDP (2019)
In the one-year period since the last release of official data in 2018, the global economy grew approximately $2 trillion in size—or about 2.3%.
The United States continues to have the top GDP, accounting for nearly one-quarter of the world economy. China also continued to grow its share of global GDP, going from 15.9% to 16.3%.
|Rank||Country||GDP||% of Global GDP|
|Top 10 Countries||$58.7 trillion||66.9%|
In recent years, the Indian economy has continued to have an upward trajectory—now pulling ahead of both the UK and France—to become one of the world’s top five economies.
In aggregate, these top 10 countries combine for over two-thirds of total global GDP.
2020 Economic Contractions
So far this year, multiple countries have experienced temporary economic contractions, including many of the top 10 countries listed above.
The following interactive chart from Our World in Data helps to give us some perspective on this turbulence, comparing Q2 economic figures against those from the same quarter last year.
One of the hardest hit economies has been Peru. The Latin American country, which is about the 50th largest in terms of GDP globally, saw its economy contract by 30.2% in Q2 despite efforts to curb the virus early.
Spain and the UK are also feeling the impact, posting quarterly GDP numbers that are 22.1% and 21.7% smaller respectively.
Meanwhile, Taiwan and South Korea are two countries that may have done the best at weathering the COVID-19 storm. Both saw minuscule contractions in a quarter where the global economy seemed to grind to a halt.
Projections Going Forward
According to the World Bank, the global economy could ultimately shrink 5.2% in 2020—the deepest cut since WWII.
See below for World Bank projections on GDP in 2020 for when the dust settles, as well as the subsequent potential for recovery in 2021.
|Country/ Region / Economy Type||2020 Growth Projection||2021E Rebound Forecast|
|East Asia and Pacific||-0.5%||6.6%|
|Europe and Central Asia||-4.7%||3.6%|
|Latin America and the Caribbean||-7.2%||2.8%|
|Middle East and North Africa||-4.2%||2.3%|
Source: World Bank Global Economic Prospects, released June 2020
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