Global trends in retirement planning and self-determination

Recent studies highlight a global shift toward increased individual responsibility in retirement planning. A Swiss Re Sigma study indicates that individuals in countries such as the United States, United Kingdom, and Australia are increasingly making complex financial decisions regarding wealth transfer, long-term care, and pension capital management. In the United States, for example, more than half of retirees chose to manage their pension capital in 2018, a significant increase from 10 percent in 2000. The study also identifies a potential “advice gap” in Switzerland as more people opt for lump-sum benefits without sufficient guidance.

In Germany, research from Swiss Life Deutschland shows a decline in perceived self-determination. The eighth annual Self-Determination Barometer reports that only 52 percent of respondents feel generally self-determined, a record low. Financial retirement planning was identified as a major area of deficit, with only 35 percent of respondents feeling self-determined in that area. Obstacles to financial independence in Germany include inflation, insufficient income, and rising costs for rent, energy, and healthcare.