Contrasting American and European Perspectives on Retirement
European and American attitudes toward retirement display striking cultural differences. A survey conducted by Axios in collaboration with Ipsos reveals one in five employed adults’ express skepticism about ever retiring. This sentiment is fueled by a prevailing concern—70% of these individuals fear that their financial resources will fall short of facilitating a comfortable retirement. Unlike their European counterparts, a significant portion of American workers lack confidence in the efficacy of Social Security benefits and pensions as sufficient support during their retirement years. This reflects how many Americans value being self-reliant and independent financially, focusing on themselves rather than relying on society’s help.
Contrastingly, European perspectives on retirement tend to be more aligned with a collective mindset. European societies, overall, have established robust welfare systems that prioritize comprehensive healthcare, education, and retirement benefits. As a result, individuals across many European countries view retirement as a natural phase of life, underpinned by a sense of security provided by state-sponsored programs. While financial concerns are not entirely absent, Europeans generally exhibit greater faith in their social support structures, leading to a more optimistic retirement outlook.
At the conclusion of The Plan Sponsor University (TPSU) Fiduciary Education Program held on the UCLA campus, Fred Barstein, founder and CEO of TPSU, interviewed AJ Althuis, a business professor at Rollins College, following a TPSU program. AJ discusses differences in retirement committee requirements between the US and Europe, highlighting Ireland’s annual certification program for fiduciaries. He notes that European employees tend to be more aware of retirement planning’s significance compared to their American counterparts, suggesting that US employers may need to offer more financial training and education. AJ, who has fiduciary experience, finds value in TPSU’s program, especially given evolving regulations like Secure 2.0. He recommends the program to HR professionals and experienced individuals alike for its valuable insights.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, CEO and founder of TPSU, here in Winter Park, Florida, on the campus of Rollins College, where we just completed a TPSU program. And I am here with AJ. Welcome, AJ.
AJ:
Thank you very much.
Fred Barstein:
Okay if we ask you a few questions?
AJ:
Please do.
Fred Barstein:
Okay. Before we do, just a little bit about yourself, what you do and your organization.
AJ:
Okay. So my name’s AJ Althuis. I am a business professor here at Rollins College. I teach HR management, entrepreneurship and international business. I’ve been with Rollins for about four years, and before that I worked in industry for 27 years, predominantly on the HR side of things.
Fred Barstein:
And you’re joining the committee? Rollins’ committee [inaudible].
AJ:
And I’ve been volunteered to work on the retirement planning committee.
Fred Barstein:
So one of the things that you talked about that I thought was interesting is the difference in Europe and overseas in how they approach working with individuals and also members of the committee. So can you give us a little bit of the differences?
AJ:
Yeah, there’s different flavors. When I was in the industry, I predominantly worked here in Americas and in Europe. In Europe, the requirements to serve on a retirement committee are different from country to country. And the one standing out most is probably Ireland, where it’s an annual certification program, it’s a one-day training that you have to have. You to be in Ireland forage, which of course is a benefit because there’s some social side to that as well. But it’s a very serious role as a fiduciary in Ireland, as it is in many other European countries. And you need to be certified to take on that role.
Fred Barstein:
Right. And you also talked about the way that people, families, and even organizations work with their individual employees and prepare for retirement as well.
AJ:
Yes. And so one of the things is to take stock of the general culture within which you work. What I’ve found is that typical European employees are more aware of the importance of retirement and financial planning than what I’ve typically found here in the United States. And as such, as an employer, you may have to go a little bit further in providing financial training and not just to communicate the plan but actually take one or two extra steps to educate or provide educational opportunities about financial planning and how retirement fits into that bigger picture.
Fred Barstein:
Great. So final question, AJ, how is the program for you and do you think it would benefit HR people? You’re a professor and you teach the people this.
AJ:
Yes, and I do have experience being a fiduciary in the past, and I’m glad that I came because there’s new things coming. Secure 2.0 is coming. And so the landscape is constantly changing and you have to stay up to speed. And so even if you are experienced, I would still highly recommend coming to this class. And it’s an enjoyable format and you always have at least one or two serious takeaways that you take home and can apply to your plan.
Fred Barstein:
Very good. Well, thank you for your time. Thanks for attending TPSU and thank you for watching 401KTV.
