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Research

Natixis Ranks US 17th for Retirement Wellbeing, Income Inequality a Minus

Although the US spends more on health care per capita, its life expectancy lags compared to other developed countries.

By Poonkulali Thangavelu

The US ranks 17th among 43 countries on a 2017 index of retiree wellbeing across developed countries put together by Natixis Global Asset Management, sliding down from its number 14 rank for 2016.

The Boston asset management firm bases its rankings on 18 measures of retiree welfare across the four broader aspects of finances, health, material wellbeing, and quality of life. 

The top-10 ranked countries on the Natixis retiree wellbeing index for 2017 include (in order of ranking) Norway, Switzerland, Iceland, Sweden, New Zealand, Australia, Germany, Denmark, the Netherlands, and Luxembourg.

The factors that impacted the US’s ranking are:

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  • The US ranks only 30th for life expectancy, even as it spends more per person on healthcare than any other country on the index, suggesting it is not getting a good return on the money spent.
  • Although the country’s income per capita is fifth-highest, it has the sixth-lowest rank for income equality. This implies that many Americans are not participating in economic growth and could find saving for retirement a challenge.
  • American retirees face a lower quality of life and decline in happiness levels, which was somewhat offset by an improvement in environmental factors, including cleaner air.
  • Banks’ non-performing loans and levels of federal debt have improved compared to the other nations, landing the US in the top 10 for finances. Offsetting this was the high levels of public debt as a portion of GDP, as well as the rising proportion of retirees compared to working-age adults, which pressures welfare programs such as Social Security and Medicare. Low interest rates and tax pressures also impact retirement income and savings rates.

“This year’s global retirement index is an important reminder that retirement security is a complex, multi-dimensional issue that is vastly influenced by a nation’s policies, politics, and economics,” said Ed Farrington, executive vice president of retirement for Natixis Global Asset Management.

He added, “The population is getting older, making retirement security one of the most pressing social issues facing the world. Factors such as increasing longevity, income inequality, and the impact of monetary policy on personal savings and pension liabilities, are challenging the long-standing assumptions about how Americans plan for and live in retirement.”

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Home > News > Newsmakers > Focus Fund Seeks to Make $900 Million in Senior Housing Investments
Newsmakers

Focus Fund Seeks to Make $900 Million in Senior Housing Investments

The fund seeks to add value by making property improvements and improving residential experiences.

By Poonkulali Thangavelu

Chicago-based Focus Healthcare Partners has closed a $312 million private investment fund that is seeking to make discretionary investments in the senior housing sector. With the use of additional institutional debt, the fund expects to invest about $900 million in the sector.

The real estate investment firm reports that it is looking for investments in properties that offer independent living, assisted living, and memory care services on a private-pay basis, to senior citizens nationwide.

Founded in 2009 by Paul A. Froning and Curt P. Schaller, Focus has acquired senior housing properties nationwide. In partnership with institutional investors, the firm previously has invested more than $400 million in the senior housing sector.

Schaller noted, “Senior housing represents one of the most compelling sectors in the United States. With its clear and compelling demographic story and high levels of fragmentation, we see significant opportunities to acquire properties at attractive risk-adjusted returns.”

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The current Focus fund has attracted investments from public pension plans, university endowments, public insurance companies, and other institutional investors.

Froning said, “We are fortunate to have developed relationships with investors who share our vision for investing in senior housing. We have built our success by focusing first and foremost on how we can improve the resident experience.”

He added, “With aggressive asset management and physical improvement to the properties we acquire, we aim to maximize quality of life for seniors and increase the value our properties afford them.”

The National Investment Center for Seniors Housing & Care, an Annapolis, Maryland-based trade association, reports that occupancy rates in the independent living niche were 90.6% on average in the second quarter and 86.5% for the assisted living market.

Annual absorption in the seniors housing sector was at 3% as of the second quarter, which was the fastest pace since 2006, when the NIC started to report this information. And seniors housing annual inventory growth rate in the second quarter was at 3.9%, which was also its fastest pace since 2006.

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