Thirteen countries, mostly northern European, beat out the United States when it comes to preparing their citizens for retirement, according to a study released Tuesday by Natixis Global Asset Management.
The United States ranks fourteenth out of 43 countries considered by Natixis in the 2016 Global Retirement Index. The study considered residents’ access to quality financial services and the ability to preserve savings; retirees’ ability to live comfortably; retirees’ access to quality health services, and whether a country can provide a clean, safe environment in which to live.
The leading countries have good access to retirement plans, incentives to save, high engagement of the population in saving, and good fiscal and healthcare policies that help make retirees self-sufficient.
“Retirement used to be simple: Individuals worked and saved, employers provided a pension, and payroll taxes funded government benefits, resulting in a predictable income stream for a financially secure retirement,” says John Hailer, CEO of Natixis Global Asset Management in the Americas and Asia.
“Demographics and economics have rendered the old model unsustainable, but the leaders in our index are finding innovative ways to adapt to the new reality and provide a blueprint for the rest of the world,” he adds.
Natixis focused on developed economies where retirement is a pressing social and economic issue. The United States has high levels of wealth and economic stability. However, it did not make the top 10 because of such factors as its high level of income inequality, the fact that there are fewer workers to support the large baby boom population and the shift from defined benefit to defined contribution retirement plans.
Following are the 10 countries where citizens have the best chance at a comfortable retirement, listed in reverse order.
No. 10: Canada