More than three quarters of pre-retirees in Latin American countries worry they will be unable to retire comfortably and are uncertain that they will be able to afford day-to-day needs in retirement. Additionally, nearly half of pre-retirees think they only need to plan for 20 years or less or don’t know at all.
These findings were shared by Robert A. Kerzner, president and CEO of LIMRA, LOMA and LL Global, with more than 500 Latin American insurance executives at a meeting this summer in Foz do Iguaçu, Brazil.
“Worldwide, research shows that consumers have not saved enough for retirement,” said Kerzner, who released the findings from LIMRA’s Latin American Retirement Study. “LIMRA’s new study reveals that many Latin Americans are facing the same challenges as consumers in the U.S. -- lack of sufficient savings and retirement planning, and a poor understanding of the risks associated with retirement, like longevity, health care costs, volatility and inflation. Our industry -- unlike any other -- offers the solutions that can mitigate these risks.”
However, Kerzner claims the industry should be optimistic. “Latin American countries’ middle income markets are exploding -- growing 50 percent in the past decade. This opportunity is evident in the many global companies entering the Latin American market,” he noted. “They know middle income families will need the protection and investment products and services that are unique to our industry.”
In addition, the demographics in Latin American countries tends to skew younger, creating much less stress on government-funded retirement programs that other countries, including the U.S., are experiencing.