People around the world continue to expect a sizable portion of their retirement income to come from the government.
In fact, the average respondent expected almost half of their retirement income, 46 percent, to come from government retirement benefits, according to a report released by the Transamerica Center for Retirement, a division of the Los Angeles-based nonprofit foundation Transamerica Institute.
The survey, A Retirement Wake-Up Call: The Aegon Retirement Readiness Survey 2016,” was conducted in collaboration with the Aegon Center for Longevity and Retirement, and is the fifth annual study sponsored by the groups. The survey encompasses 16,000 employees and retirees in 15 countries: Australia, Brazil, Canada, China, France, Germany, Hungary, India, Japan, the Netherlands, Poland, Spain, Turkey, the United Kingdom and the U.S.
U.S. respondents expected 43 percent of their retirement income to be funded by Social Security and other government benefits. Spanish citizens had the highest expectation of retirement income from government benefits, at 64 percent, while people in India had the lowest, at 25 percent.
Only 26 percent of workers globally, and 32 percent in the U.S., believe they are on course to achieving their retirement income needs.
Globally, only 13 percent of workers, 26 percent in the U.S., said they have a written retirement plan.
When asked what steps governments should take to address financially strained retirement programs, most respondents said that reform is needed. Almost one in three, 31 percent, of people globally believed that government should increase overall funding for social security-type benefits through raising taxes without having to reduce the value of individual payments.
Thirty-three percent of U.S. respondents agreed that taxes should be raised without a reduction in individual benefits.
Fewer respondents, 15 percent globally and 19 percent in the U.S., supported reducing benefits without increasing taxes.
Around one-in-four respondents, 27 percent globally and 23 percent in the U.S., felt that governments should take a balanced approach to funding and securing retirement benefits programs.