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?
Visualizing the Expanse of the ETF Universe
The global ETF universe has grown to be worth $5.75 trillion — here’s how the assets break down by type, sector, and investment focus.
Visualizing the Expanse of the ETF Universe
View the high resolution version of this infographic by clicking here.
Under the right circumstances, an innovation can scale and flourish.
Within the financial realm, there is perhaps no better example of this than the introduction of exchange-traded funds (ETFs), a new financial technology that emerged out of the index investing phenomenon of the early 1990s.
Since the establishment of the first U.S. ETF in 1993, the financial instrument has gained broad traction — and today, the ETF universe has an astonishing $5.75 trillion in assets under management (AUM), covering almost every niche imaginable.
Navigating the ETF Universe
Today’s data visualization comes to us from iShares by BlackRock, and it visualizes the wide scope of assets covered by the ETF universe.
To start, let’s look at a macro breakdown of the “galaxies” that can be found in the universe:
|Global ETFs (AUM, $USD)||Share of Global Total|
|All ETFs||$5.75 trillion||100.00%|
|Money market||$0.04 trillion||0.6%|
As you can see, equities are by far the largest galaxy in the ETF universe, making up 76.4% of all assets. These clusters likely comprise the ETFs you are most familiar with — for example, funds that track the S&P 500 index or foreign markets.
That said, it’s worth noting that the fastest expanding galaxy is bond ETFs, tracking indices related to the debt issued by governments and corporations. The first bond ETFs were introduced in 2002, and since then the category has grown into a market that exceeds $1 trillion in AUM. Bond ETFs are expected to surpass the $2 trillion mark by 2024.
Everything Under the Sun
While the sheer scale of the ETF universe is captivating, it’s the variety that shows you how ubiquitous the instrument has become.
Today, there are over 8,000 ETFs globally, covering nearly every asset class imaginable. Here are some of the lesser-known and more peculiar corners in the ETF universe:
Thematic ETFs: Gaining popularity in recent years, thematic ETFs are built around long-term trends such as climate change or rapid urbanization. By having more tangible focus points, these funds can also appeal to younger generations of investors.
Contrarian ETFs: In a healthy market, there can be a variety of different positions being taken by investors. Contrarian ETFs help to make this possible, allowing investors to bet against the “herd”.
Factor-based ETFs: This approach uses a rules-based system for selecting investments in the fund portfolio, based on factors typically associated with higher returns such as value, small-caps, momentum, low volatility, quality, or yield.
Global Macro ETFs: Some ETFs are designed to mimic strategies used by hedge fund managers. One example of such a strategy is global macro, which aims to analyze the macroeconomic environment, while taking corresponding long and short positions in various equity, fixed income, currency, commodities, and futures markets.
Commodity ETFs: There are ETFs that track gold or oil, sometimes even storing physical inventories. Interestingly, however, there are commodity ETFs for even more obscure metals and agricultural products, such as zinc, lean hogs, tin, or cocoa beans.
Whether your investments track popular market indices or you are more surgical about your portfolio exposure, the ETF universe is impressively vast — and it’s projected to keep expanding in size and diversity for years to come.
All of the World’s Wealth in One Visualization
There is $360.6 trillion of wealth globally. This graphic shows how it breaks down by country, to show who owns all of the world’s wealth.
All of the World’s Wealth in One Visualization
The financial concept of wealth is broad, and it can take many forms.
While your wealth is most likely driven by the dollars in your bank account and the value of your stock portfolio and house, wealth also includes a number of smaller things as well, such as the old furniture in your garage or a painting on the wall.
From the macro perspective of a country, wealth is even more all-encompassing — it’s not just about the assets held by private households or businesses, but also those owned by the public. What is the value of a new toll bridge, or an aging nuclear power plant?
Today’s visualization comes to us from HowMuch.net, and it shows all of the world’s wealth in one place, sorted by country.
Total Wealth by Region
In 2019, total world wealth grew by $9.1 trillion to $360.6 trillion, which amounts to a 2.6% increase over the previous year.
Here’s how that divvies up between major global regions:
|Region||Total Wealth ($B, 2019)||% Global Share|
Last year, growth in global wealth exceeded that of the population, incrementally increasing wealth per adult to $70,850, a 1.2% bump and an all-time high.
That said, it’s worth mentioning that Credit Suisse, the authors of the Global Wealth Report 2019 and the source of all this data, notes that the 1.2% increase has not been adjusted for inflation.
Ranking Countries by Total Wealth
Which countries are the richest?
Let’s take a look at the 15 countries that hold the most wealth, according to Credit Suisse:
|Rank||Country||Region||Total Wealth ($B, 2019)||% Global Share|
|#1||🇺🇸 United States||North America||$105,990||29.4%|
|#5||🇬🇧 United Kingdom||Europe||$14,341||4.0%|
|#9||🇨🇦 Canada||North America||$8,573||2.4%|
|#11||🇰🇷 South Korea||Asia-Pacific||$7,302||2.0%|
|All Other Countries||$56,585||15.7%|
The 15 wealthiest nations combine for 84.3% of global wealth.
Leading the pack is the United States, which holds $106.0 trillion of the world’s wealth — equal to a 29.4% share of the global total. Interestingly, the United States economy makes up 23.9% of the size of the world economy in comparison.
Behind the U.S. is China, the only other country with a double-digit share of global wealth, equal to 17.7% of wealth or $63.8 trillion. As the country continues to build out its middle class, one estimate sees Chinese private wealth increasing by 119.5% over the next decade.
Impressively, the combined wealth of the U.S. and China is more than the next 13 countries in aggregate — and almost equal to half of the global wealth total.
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