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LONDON, 13 October, 2018 —State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), announced today that it has defined a ‘formula for retirement happiness.’
In a new research paper, entitled ‘The Global Retirement Reality Report: The Happiness Formula J’, State Street Global Advisors compared objective rankings of various retirement systems with qualitative results from a survey of over 9,500 respondents in eight countries.
It found that the retirement structures with the highest objective rankings did not necessarily correspond to the happiest respondents.
For example, the Netherlands consistently ranks as one of the strongest retirement systems in the world; it has the highest Melbourne Mercer Global Pension Index ranking and maintains a very high level of coverage, participation and savings rates. However, the Netherlands has the lowest level of satisfaction in retirement of all the countries surveyed. Meanwhile, in the US, those savers in a DC plan are very confident and optimistic about their prospects and indeed are generally happy in retirement, despite comparatively low levels of saving and a low index ranking.
The report found that the key factors driving retirement happiness were a combination of trust in a country’s retirement system stability, a strong feeling of ownership regarding their own outcomes and being well prepared in terms of accumulated retirement assets.
Here are the key findings from the report:
As a result of the findings, State Street recommends the following key takeaways based on the happiness formula:
“As is the case with happiness more generally, there is not one driver, but several elements that combine to enable a happy and secure retirement,” Nigel Aston, global head of strategy and proposition at State Street Global Advisors. “By observing retirement realities through the eyes of the individual saver, we are working to truly understand people’s experiences with state and institutional structures globally. By doing so, we can offer solutions that are as multidimensional as the needs of the people, plans, and policies involved. Happiness is important and evolving as our lives evolve.”
“From these findings, we hope to have arrived at a blueprint for a successful retirement structure that combines effective practices with rewarding retirement experiences, gathered from around the world,” said Emmanuel Laurina, Senior Executive Officer, Head of Middle East & Africa, Global Institutional Group, State Street Global Advisors. “With this study, we are looking to identify the factors across a number of retirement systems that drive retirement happiness, which can become best practices that are applied as retirement systems shift to have an increased reliance on the Defined Contribution model.”
The full report can be found here
About State Street Global Advisors
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third largest asset manager with nearly US $2.72 trillion* under our care.
*This figure is presented as of June 30, 2018 and includes approximately $33 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
Investing involves risk including the risk of loss of principal. Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions. This material should not be considered a solicitation to apply for interests in the Funds and investors should obtain independent financial and other professional advice before making investment decisions. There is no representation or warranty as to the currency or accuracy of, nor liability for, decisions based on such information.
Australia: State Street Global Advisors, Australia, Limited (ABN 42 003 914 225) (AFSL Number 238276) (“SSGA”). Registered office: Level 17, 420 George Street, Sydney, NSW 2000, Australia • Telephone: +612 9240‐7600 • Facsimile: +612 9240‐7611 Web: www.ssga.com.au
Belgium: State Street Global Advisors Belgium, Chaussée de La Hulpe 120, 1000 Brussels, Belgium. Telephone: 32 2 6632036, Facsimile: 32 2 672 2077. SSGA Belgium is a branch office of State Street Global Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom.
Ireland: State Street Global Advisors GmbH, Brienner Strasse 59, D‐80333 Munich. Authorised and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”). Registered with the Register of Commerce Munich HRB121381. Telephone +49 (0)89‐55878‐400. Facsimile +49 (0)89‐55878‐440. www.ssga.com
Germany: State Street Global Advisors Ireland Limited is regulated by the Central Bank of Ireland. Incorporated and registered in Ireland at Two Park Place, Upper Hatch Street, Dublin 2. Registered Number: 145221. Member of the Irish Association of Investment Managers. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300.
Italy: State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano) is a branch of State Street Global Advisors Limited, a company registered in the UK, authorised and regulated by the Financial Conduct Authority (FCA ),with a capital of GBP 71’650’000.00, and whose registered office is at 20 Churchill Place, London E14 5HJ. State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano), is registered in Italy with company number06353340968 ‐ R.E.A. 1887090 and VAT number 06353340968 and whose office is at Via dei Bossi, 4 ‐ 20121 Milano, Italy • Telephone: 39 02 32066 100 • Facsimile: 39 02 32066 155.
Netherlands: State Street Global Advisors Netherlands, Apollo Building, 7th floor Herikerbergweg 29 1101 CN Amsterdam, Netherlands. Telephone: 31 20 7181701. SSGA Netherlands is a branch office of State Street Global Advisors Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom
United States: State Street Global Advisors, One Iron Street Boston, Massachusetts 02210
United Kingdom: State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. Telephone: 020 3395 6000. Facsimile: 020 3395 6350.