The population of the world is aging, creating new and distinct burdens and opportunities for countries.
But which countries provide the best environment for retirees? Natixis Global Asset Management tracks developed countries to see which produce the best retirement scenarios in its 2017 Global Retirement Index.
Natixis uses four categories to determine the state of retirement health across the globe: the material means to live comfortably in retirement; access to quality financial services to help preserve savings value and maximize income; access to quality health services; and a clean and safe environment.
Looking at the results by region, eight of the top 25 performing countries are located in Western Europe. Some countries improved their positions, while others slipped down on the scale from previous year’s rankings. The biggest declines among the top 25 are the United States and Austria. The United States slipped four spots because of declines in the income equality, happiness and life expectancy indicators, while Austria declined mostly due to financial instability.
Following are the 25 countries—from 43 developed countries considered—in ascending order that Natixis found are providing good retirement conditions.
25. Slovak Republic
The Slovak Republic moved into the top 25 ranking this year after missing out by just one spot last year. Driving the higher overall score were improvements within the categories of material well-being and quality of life.
24. Slovenia
Slovenia remained in the 24th spot for the second year in a row and managed to improve its performance in the quality-of-life and finances indexes. The country ranked in the middle of the pack for finances.
23. Republic of Korea
South Korea fell one spot to 23rd overall in this year’s index. Its score for material well-being declined but rankings for health and quality of life improved.
22. Japan
Japan fell one spot to 22nd in this year’s index partially because of a drop in its income equality ranking. However, it had a good employment rate and ranked well in health services.
21. Malta
Malta showed its largest improvement in the health category with especially strong gains in the life expectancy indicator, while health expenditure per capita and insured health expenditure improved also. An improved showing in the quality of life ranking was driven by environmental improvements such as lower CO2 emissions per GDP and a higher prevalence of renewable electricity.
20. Israel
Israel had rising levels of income inequality, but its employment and income per capita indicators, both of which rose compared to last year, represent a bright spot. It also has seen declines in both the life expectancy and insured health expenditure indicators compared to last year.
19. France
France improved its score in material well-being. Both its income equality and income per capita indicators increased from last year. Less positively, it has the seventh highest unemployment rate of any country in the retirement index.
18. United Kingdom
The United Kingdom dropped one place to 18th this year. It registered a fall in its health score but improved in finance and quality of life. The environmental factors indicator rose because of improvements in all environmental factors, especially increased renewable electricity usage and CO2 emissions per capita.
17. United States
The United States fell three places to 17th this year. The country’s highest-ranking is in the health category. The only indicator to fall is life expectancy. Meanwhile, the United States boasts the highest score for health expenditure per capita of the countries in the retirement index and ranked sixth-highest for insured health expenditure. With the seventh-highest public debt as a percentage of GDP of all countries in the retirement index, there is clearly room for improvement, Natixis says. While the country has the fifth-highest income per capita, inequality remains an area of concern.
16. Czech Republic
The Czech Republic improved its ranking from 18th to 16th this year. The country achieved a balanced set of results across all categories and registered its strongest performance in material well-being.
15. Belgium
Belgium remains in 15th place overall, the same ranking it achieved last year. It registered improvements in finances but suffered declines in its scores for material well-being.
14. Ireland
Ireland jumped two spots in this year’s index to 14th overall. Improvements in the material well-being, finances and quality-of-life rankings drive the positive change. Ireland almost breaks into the top 10 in the finances index,
13. Austria
Austria lost ground in some categories but still ranks in the top 10 for income per capita and income equality.
12. Finland
Finland cut its CO2 emissions to improve its ranking for environmental factors.
11. Canada
Canada ranked in the top 10 for finances and health. It also ranked well for governance.
10. Luxembourg
Luxembourg moved up three spots to tenth overall in this year’s index. It improved its score in material well-being and quality of life
9. Netherlands
Netherlands improved its quality of life ranking and scored well on environmental issues such s CO2 emissions. A rise in the happiness indicator also contributed its earning the ninth place spot.
8. Denmark
Denmark improved in the quality-of-life index and scored well on environmental factors. It also had the second-highest score for the happiness indicator.
7. Germany
Germany has a low inflation rate and ranked well in governance.
6. Australia
A high score for quality of life and a solid performance in finances gave the sixth spot to Australia.
5. New Zealand
New Zealand performed exceptionally well in finances and but its overall ranking was dinged somewhat by lower scores for both old-age dependency and tax pressure. It still had the highest score for governance and ranked well for finances.
4. Sweden
Sweden landed the fourth place spot in part by improving its health care expenditure rate per capita.
3. Iceland
Iceland provides a good quality of material well-being for its residents, and recent banking reforms have succeeded in improving its finances.
2. Switzerland
Switzerland does well at providing for its citizens material well-being and is improving its income inequality ranking.
1. Norway
For the second year in a row, Norway landed the top spot in the Global Retirement Index. It ranked highest for happiness of residents. It also improved its status by reducing CO2 emissions, thereby improving its environment.