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Visualizing Global Attitudes Towards Retirement

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Retirement income attitudes

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:

CountryExpectation (% of salary)Actual (% of salary)Difference
🇵🇱 Poland10356-47
🇯🇵 Japan8137-44
🇮🇩 Indonesia10565-40
🇨🇱 Chile*9357-36
🇭🇰 Hong Kong8044-36
🇷🇺 Russia*6632-34
🇸🇬 Singapore6742-25
🇰🇷 South Korea6745-22
🇿🇦 South Africa8059-21
🇧🇪 Belgium7554-21
🇦🇺 Australia7152-20
🇸🇪 Sweden8366-17
🇫🇷 France7861-17
🇺🇸 U.S.7458-16
🇧🇷 Brazil8874-14
🇨🇭 Switzerland6855-13
🇬🇧 U.K.6653-13
🇨🇳 China*8067-13
🇨🇦 Canada7161-10
🇩🇰 Denmark7468-6
🇮🇹 Italy8074-6
🇳🇱 Netherlands7569-6
🇪🇸 Spain7368-5
🇩🇪 Germany6765-2
🇹🇭 Thailand*6664-1
🇦🇹 Austria64673
🇮🇳 India719625
🇵🇹 Portugal467226
🇹🇼 Taiwan*6811749

*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?

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Money

Charted: Who Has Savings in This Economy?

Older, better-educated adults are winning the savings game, reveals a January survey by the National Opinion Research Center at the University of Chicago.

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A cropped chart visualizing the percentage of respondents to the statement “I have money leftover at the end of the month” categorized by sentiment, age, and education qualifications.

Who Has Savings in This Economy?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Two full years of inflation have taken their toll on American households. In 2023, the country’s collective credit card debt crossed $1 trillion for the first time. So who is managing to save money in the current economic environment?

We visualize the percentage of respondents to the statement “I have money leftover at the end of the month” categorized by age and education qualifications. Data is sourced from a National Endowment for Financial Education (NEFE) report, published last month.

The survey for NEFE was conducted from January 12-14, 2024, by the National Opinion Research Center at the University of Chicago. It involved 1,222 adults aged 18+ and aimed to be representative of the U.S. population.

Older Americans Save More Than Their Younger Counterparts

General trends from this dataset indicate that as respondents get older, a higher percentage of them are able to save.

AgeAlways/OftenSometimesRarely/Never
18–2929%33%38%
30–4436%27%37%
45–5939%23%38%
Above 6049%28%23%
All Adults39%33%27%

Note: Percentages are rounded and may not sum to 100.

Perhaps not surprisingly, those aged 60+ are the age group with the highest percentage saying they have leftover money at the end of the month. This age group spent the most time making peak earnings in their careers, are more likely to have investments, and are more likely to have paid off major expenses like a mortgage or raising a family.

The Impact of Higher Education on Earnings and Savings

Based on this survey, higher education dramatically improves one’s ability to save. Shown in the table below, those with a bachelor’s degree or higher are three times more likely to have leftover money than those without a high school diploma.

EducationAlways/OftenSometimesRarely/Never
No HS Diploma18%26%56%
HS Diploma28%33%39%
Associate Degree33%31%36%
Bachelor/Higher Degree59%21%20%
All Adults39%33%27%

Note: Percentages are rounded and may not sum to 100.

As the Bureau of Labor Statistics notes, earnings improve with every level of education completed.

For example, those with a high school diploma made 25% more than those without in 2022. And as the qualifications increase, the effects keep stacking.

Meanwhile, a Federal Reserve study also found that those with more education tended to make financial decisions that contributed to building wealth, of which the first step is to save.

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