www.aegon.com Retirement Readiness

As life expectancy continues to rise around the world, it is clear that those providing pensions – be they companies or governments – can no longer afford generous pension arrangements that must now have a duration of 30 or more years, versus the 10 or so years anticipated decades before. As a result, people in working life today increasingly accept that their retirement will look very different than that of their predecessors. Most have a clear expectation that they will keep working in some capacity after the traditional retirement age, approaching full retirement in phases. Accommodating the “new retirement” will necessitate greater flexibility in terms of fiscal policies and incentives, as well as working patterns provided by employers.  

The AeGon retirement readiness Index (ArrI) has been developed to measure how prepared current employees feel about their own retirement. this perceived state of readiness measured by the index is influenced by factors that include age, income, gender and level of education. different countries, with their own patterns of government and employer retirement benefit systems, also reveal marked variations of readiness. employees in Germany, the Netherlands, the United States and the United Kingdom regard themselves as being the most prepared for retirement. Hungary and Poland indicate that they are the least prepared.   

ARRI analyzes retirement readiness by country, providing a perspective of the varying degrees in which realization of personal responsibility is being translated into action. the Index clearly reveals that too many people are not doing enough, if anything, to pave the way for a retirement that will resemble the quality of life enjoyed during working years.  

The “Retirement Cliff” is giving way to a Phased Retirement Looking beyond the need for pension reform, employees are already changing their expectations for their transition into retirement. what is known as the “retirement cliff” – the point when an employee ends his or her working life and enters full-time retirement – is becoming a thing of the past. Increasingly, retirement is a phased transition from full-time working to partial retirement that still involves some type of work-related activity. whereas a majority (54%) of the current generation of retirees moved straight from working life into full retirement, the majority of current employees (60%) expect to keep working in some manner beyond their retirement age. US employees are leading this trend, with only 18% expecting to stop working immediately when they reach retirement age.  


The number of people globally aged 60 and older is expected to reach 2 billion by 2050, which is for the first time expected to be more than the number of children aged 14 and younger. The economic crisis of recent years has put even greater pressure on the retirement systems and shifted more responsibility to individuals to prepare financially for their own retirement.  

What is the traditional retirement scheme in your country?

Have you ever thought about early retirement?

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