When comparing the United States with Northern European countries like Denmark, Norway, Sweden, Finland, Belgium, the Netherlands, and Germany, a notable distinction emerges: the prevalence of pension plans among the majority of the population in the latter. This results in reduced financial stress during retirement, as many retirees rely on their monthly pension checks rather than substantial savings or investment accounts. The confidence in their country’s financial system contributes significantly to the contentment experienced by retirees in Scandinavian and Northern European nations, consistently rated among the happiest places to live. In contrast, Americans tend to have a different approach, with more emphasis on savings and investment accounts and less reliance on pensions or pension-like investment solutions. 

Effective retirement planning involves considering the client’s current assets, potential future contributions, goals, and income needs through unbiased conversations to construct a suitable plan. This planning process encompasses two crucial components: accumulation for those still working towards retirement and strategies for those nearing retirement or already in it. Ideally, a blend of the Scandinavian/Northern European and American approaches to retirement savings is advocated, combining predictable monthly income from “pension-like” solutions with savings and investment accounts. The implementation of such a plan requires time, emphasizing the importance of starting early on the path towards a more secure retirement.