When it comes to saving for retirement, Americans are still lagging behind the world in many areas, a new analysis from investment firm Korn Ferry finds.
While the United States accounts for just over 15 percent of global economic output, it spends a whopping $11,600 per capita, compared to the $13,400 that the United Kingdom spends per capita.
The UK’s rate is much lower than the U.S.’s, and in many ways it’s more affordable, Korn says.
But Korn also notes that Americans still pay the lion’s share of their retirement income on interest, which is far more expensive than other countries.
“The U.K. is in a much different position than the United, say, the United Arab Emirates,” Korn said.
“For example, you have to have a lot of savings and you don’t have a pension plan.
If you’re saving, you’re going to need a lot more to pay for a pension.
So it’s a lot harder to do.”
The findings are the latest from Korn’s annual Retirement Compass report, which offers an assessment of the state of retirement plans in the U, the UAR and the EEA.
The U.k. is the only country that includes a retirement account, and the UA’s account is the largest of all the countries.
That means that the UB accounts for about 60 percent of U.B.S. retirees, and about a third of UAS retirees.
Korn found that U.s. pension plans were the worst among the groups it studied.
While a U.A. plan is more expensive, Koss says, the plans of the EA, EU and the GAA all rank among the top-rated in terms of saving.
While U.a.s pension plan ranks among the worst in the world, the GSA is the least expensive, with an average savings of $4,100 per person, according to Korn.
The average EAA plan is cheaper than U.o.a.’s at $4.75 per person.
However, even the EAA accounts for a very small portion of UAR retirees.
For example, in the first five years of retirement, only about one in 10 UAR pensioners will save at all.
“We’re really lucky in the UnitedStates that most retirees save a lot,” said Koss, who is based in London.
“I think a lot could be done in the future to help them save, but that’s not what we are seeing.”
Korn calculates that the average U. S. retiree can expect to save just over $10,000 per year in retirement.
But when the retirement accounts are combined, the savings rate drops to less than $3,600, which means the average American will end up with $8,600 in savings by age 75.
The United Kingdom, on the other hand, has an average retirement savings rate of just over 20 percent, while the ETA accounts for roughly 40 percent of the UBA retirees.
The report also found that the cost of retirement is higher in some countries than in others, especially in countries that have very low government expenditures, such as Japan.
The ETA is one of the highest-spending countries in the developed world, and Korn points out that that makes it a great place to save for retirement.
“In some cases, it’s easier to save than it is to save,” Koss said.
But in some cases the savings rates aren’t as low as they are in the EZA and the United states.
For instance, the median annual pension cost in Japan is around $12,000, but the average retirement cost in the UK is $22,000.
Even the average British pension plan is far lower than that, with a median retirement cost of just $2,400.
“This is a country where people are getting married and have children,” said Kevin McCurry, director of corporate finance at Korn Financial Services.
“If you have a retirement plan and you’re working hard, you may not have to pay much in taxes.
You could have a really low tax bill.”
For people who live in these high-spend countries, retirement savings are more likely to be spent on things like home furnishings and food.
“There are also lots of opportunities to save overseas, and that’s something that’s more attractive to people in those high-cost countries,” McCurry said.
He added that it’s important for Americans to understand that the savings they make while they’re in the workforce will be put to good use as they age.
“The longer you stay in the economy, the more that you’ll need to save to cover your needs in retirement,” McCury said.