Why America's Retirement Scorecard Needs a Reality Check — And What Experts Say Could Change It

The 2025 Global Retirement Index tells an uncomfortable story: the United States, despite its economic power, ranks just 21st among 44 nations when it comes to retirement security. For many Americans reading this scorecard, the question becomes unavoidable — why is the world’s largest economy struggling to inspire confidence in its citizens about their golden years?

The answer isn’t as simple as one might think. According to financial experts analyzing this data, the disparity largely stems from how countries operate at different scales. Smaller nations consistently outperform larger ones because they can tailor retirement programs more efficiently. As analysts note, compact economies face fewer challenges with market volatility and public debt management, allowing governments to craft policies that genuinely reassure their populations. Citizens in these smaller markets report fewer worries about losing retirement benefits or facing income inequality during their later years.

The Individual Factor: Americans’ Own Role in the Crisis

But size alone doesn’t explain everything. Derek Carlson, president and managing broker at Realty ONE Group MVP, points to a less discussed culprit — personal responsibility. The Global Retirement Index measures not actual financial security, but rather how secure people feel. And here’s the uncomfortable truth: many Americans simply haven’t done the groundwork.

“The majority of Americans express deep anxiety about government benefits disappearing or proving insufficient,” Carlson explains. “Yet the reality is those benefits were designed as safety nets, not primary income sources.” He identifies inadequate financial preparation as a primary driver of this anxiety — a problem rooted in systemic financial ignorance. Data supports this: 64% of Americans aren’t adequately prepared for retirement.

This wasn’t always the problem. Six decades ago, most employers offered pensions, removing the burden of personal planning from workers. That safety mechanism is gone, but the education to replace it never materialized.

Financial Literacy: The Missing Piece in America’s Retirement Card

Carlson pins responsibility for this gap on the lack of financial literacy education in schools. K-12 curriculums that incorporate personal finance fundamentals could reshape America’s retirement landscape for future generations. The solution involves teaching people to act early — consistently contributing to retirement accounts while diversifying into inflation-resistant assets like real estate, stocks, and precious metals.

The pathway is clear: proper financial education creates informed savers, informed savers build wealth, and wealth builders report greater retirement security.

What About Those Already Close to Retirement?

For Americans nearing retirement who feel squeezed by current circumstances, the options become more nuanced. Moving abroad to lower-cost countries like Portugal or Mexico could extend financial resources significantly. However, Andrew Latham, director of content at SuperMoney, notes the hidden costs of relocation — leaving behind family networks, familiar healthcare systems, and established social connections often outweigh the financial advantages.

The pragmatic alternative? Reimagine retirement within the United States. Latham recommends downsizing to lower-cost states, extending work years by choice, or exploring community-based living arrangements. His conclusion echoes Carlson’s core message: “America possesses all the infrastructure needed for comfortable retirement. The difference between struggling and thriving depends entirely on planning.”

The retirement scorecard doesn’t have to stay at 21st place. What changes that ranking is recognizing that personal preparation, financial literacy, and early action transform anxiety into confidence — and that transformation starts with individual Americans choosing to take control of their own retirement narrative.