How does the U.S. rate in terms of retirement security with the rest of the world?
Not exactly bad, but at the same time, the U.S. failed to make the top 10 in the 2018 Global Retirement Index.
The index, which is a product of Natixis Investment Managers, tracks 18 factors across four sub-indices—finances, material well-being, quality of life and health—to provide a baseline for retirement security around the world.
The U.S. placed 16th on the latest ranking, moving up two spots since the last index report in 2016, just behind the Czech Republic at 15 and just ahead of the U.K. at 17.
The U.S. saw a slight decline in people aged 65 or over since 2000, according to the report, while Japan’s aging population increased more than 15 percent since 1990, causing that nation to wind up at 22 on the list. The aging population globally increased about 5 percent since 1990.
Lengthening lifespans are making retirement security a burgeoning issue throughout the world, according to the latest index report.
"If we are to look to a future when ... 17 percent of the total global population will be over age 65 by 2050, we must view global retirement security as a multi-dimensional problem at the leading edge of human sustainability," the report stated.
Natixis Investment Managers and CoreData Research complied data from May of 2018.
These countries, in ascending order, provide its citizens with the best retirement security in the world, according to the index:
10. Netherlands
The country fell to 10 from 8 since 2016. However, the country scored a 90 out of 100 in the health category, while the finances in retirement index was only at 58.
9. Canada
Canada gained two spots from its 2017 ranking. The nation scored a 87 health and its quality of life index was at 83.
8. Denmark
Denmark climbed four spots since 2016. Quality of life is key in Denmark, with a score fo 94. The health index was at 85 and well being index at 74.
7. Ireland
Ireland jumped nine spots from 2016. The Emerald Isle landed an 82 for health and an 83 for its quality of life index.
6. Australia
Australia’s rank in the index remained consistent from 2016. Health and quality of life indexes were over 80. However, the nation's material well-being index only was at 66.
5. New Zealand
With a quality of life index at 90, the 85 health index score makes New Zealand seem like a winner. It’s the material well-being index at 63 that’s a drag.
4. Sweden
The quality of life and health indexes faired well for Sweden at almost 90 for each. Finances and material well-being scored lower, giving the Scandinavian country a total global retirement index of 78.
3. Norway
Norway topped the global retirement index two years ago, but fell two spots in this year's index. A global retirement index of 81 for Norway came as a result of high scores in health, quality of life, and material well-being. Finance in retirement was only at 67.
2. Iceland
The nation moved up a spot since 2016. Material well-being at 93, health at 85 and quality of life at 88 led to an overall 84 global retirement index score.
1. Switzerland
With an overall index score of 84, Switzerland took the top spot in 2018. The quality of life index was at 92, with a health index at 87, giving the country a global retirement index at 84. Material well-being was an 80 and finances in retirement was at 78.
The full report can be viewed here.
