The United States is confronting a retirement crisis, but there are alternative approaches that offer more promising solutions.

According to a survey conducted by the independent researcher YouGov and investment management company Challenger Limited in February, Australian retirees rated their retirement happiness at 70 out of 100. The survey of 1,000 Australians over 60 highlighted that good physical health was considered more crucial than financial stability for a happy retirement.

On the other hand, in the US, the retirement landscape has become a source of anxiety for many older adults who struggle financially. A report from Senator Bernie Sanders, based on data from the National Retirement Risk Index, revealed that over half of Americans aged 65 and older earn less than $30,000 annually.

Furthermore, data from the Pew Research Center indicates that the fastest-growing age group in the American workforce is individuals over 75, a trend projected to double in the next decade. This phenomenon is largely driven by financial necessity, as many older Americans cannot afford to retire.

Unlike in Australia, where retirement savings are bolstered by mandatory employer contributions, in the US, retirement accounts are typically optional benefits provided by employers. There’s no federal requirement for companies to offer retirement savings plans or provide financial support for retirees. Consequently, many Americans, living paycheck to paycheck, find it challenging to save enough for a comfortable retirement.