America's Retirement Preparedness Card: Why Experts Say the Real Problem Is Personal, Not Systemic

The 2025 Global Retirement Index delivers a sobering reality for American workers: the United States ranks just 21st among 44 nations in retirement security. But before blaming policymakers entirely, industry experts point to a more uncomfortable truth — most Americans haven’t done their homework.

The Uncomfortable Reality Behind the Rankings

The annual assessment by Natixis Investment Managers measures not actual financial data, but rather how secure citizens feel about retirement. This distinction matters enormously. According to Derek Carlson, president and managing broker at Realty ONE Group MVP, the gap between America’s retirement preparedness card and smaller countries’ top-tier rankings often comes down to individual responsibility rather than governmental failure.

“The overwhelming majority of Americans simply haven’t prepared,” Carlson explained. “Government benefits were never designed to fund 100% of retirement income — they’re meant to be a safety net, not the entire solution.”

This preparation gap stems largely from generational shifts. Sixty years ago, pensions were standard. Today, they’re rare. The transition happened quietly, leaving millions dependent on self-directed retirement planning they never learned how to do.

Why Smaller Nations Score Higher

Interestingly, the countries outpacing America on the Global Retirement Index aren’t necessarily wealthier. Instead, they’re smaller — and that matters. As CNBC correspondent Sharon Epperson noted, smaller nations find it easier to implement comprehensive retirement support programs that make citizens feel secure. Citizens in these countries worry less about losing benefits, face less income inequality, and feel more insulated from inflation risks.

Their structural advantage? Lower public debt and reduced market volatility exposure. But the U.S. operates at a different scale, with different systemic pressures.

Financial Literacy: The Missing Link

The real culprit, experts argue, isn’t policy — it’s education. Carlson points directly to inadequate financial literacy in K-12 curriculums as the root cause. “I blame poor preparation on the lack of financial literacy education,” he stated, adding that students who learned investing basics, asset diversification, and compound interest concepts would make fundamentally different retirement decisions as adults.

Introducing financial literacy to American school systems could dramatically reshape future retirement preparedness scores. It would teach younger generations the importance of contributing to retirement accounts early and consistently, while building wealth through inflation-hedging assets like real estate, stocks, and precious metals.

Practical Solutions for Americans Today

For those already approaching retirement, relocation offers one path. Andrew Latham, director of content at SuperMoney, acknowledges that countries like Portugal or Mexico stretch retirement dollars further. However, trading proximity to family and familiarity often proves costly in non-financial ways.

A more practical approach involves rethinking retirement within America itself. Latham recommends downsizing, relocating to lower-cost states, working longer by choice, or exploring community living arrangements. These strategies don’t require leaving the country.

“The U.S. has the tools to support a good retirement,” Latham emphasized. “The challenge is making it work through deliberate planning.”

The Path Forward

America’s retirement card needn’t remain in the middle of the pack. The framework for improvement exists — it simply requires a cultural shift toward financial education and personal accountability. As more Americans internalize that retirement security depends on individual action, not government rescue, the nation’s preparedness metrics should improve accordingly.

The 2025 Global Retirement Index serves as a wake-up call. But unlike structural reforms that take decades to implement, individual financial literacy can shift outcomes within a single generation.