In numerous developed nations, retirement security is on an upswing, owing to surging rates, alleviating inflationary pressures, and diminished unemployment in pivotal markets. As the pandemic recedes into the past, some retirees contemplate international relocation, be it for financial motives or a desire for a fresh lifestyle and locale. The decision of where to settle down later in life hinges significantly on factors such as a country's cost of living, quality of life, and cultural accessibility.
Leading the pack as the top country for a comfortable retirement in 2023 is Norway.
Best 7 Countries For A Comfortable Retirement
Here are the top 7 countries for a comfortable retirement:
This list is based on the 2023 Natixis Global Retirement Index that scores the list of countries based on these 11 sub-indexes:
|1. Health||2. Quality of life|
|3. Material well-being||4. Finances in retirement|
|5. Old-age dependency||6. Bank non-performing loans|
|7. Inflation||8. Interest rates|
|9. Tax pressure||10. Government indebtedness|
Countries For A Comfortable Retirement
Overall Score: 83%
Norway continues to command the Global Retirement Index (GRI), steadfastly holding the coveted first position with an exemplary overall score of 83%. Within the Material well-being sub-index, Norway ascends from second place to clinch the top spot, fueled by a substantial drop in the unemployment rate, reaching a nearly decade-low figure. Moreover, Norway registers a heightened income per capita.
Despite an improvement in its score from 69% to 70%, the nation descends one spot to ninth place in the Finances in Retirement sub-index, primarily due to an uptick in nonperforming loans in the banking sector. Nevertheless, Norway scales the ranks in the inflation rate, surging from 35th in the previous year to an impressive 14th place.
Norway solidified its top-ranking position in the Health sub-index, boasting a one-percentage-point uptick attributed to a slight increase in life expectancy. Remarkably, the country manages to stave off an increase in mortality rates, despite the prolonged influence of the pandemic, thanks to its high vaccination rates.
In the Quality of Life sub-index, Norway maintains both its score (87%) and fourth-place ranking, asserting supremacy in the water and sanitation indicator. The United Nations lauds Norway's three-decade-long commitment to enhancing drinking water quality and safeguarding critical water-related ecosystems.
Overall Score: 82%
Switzerland, a perennial high-achiever, secures second place in the GRI, bolstering its score from 80% to 82%. Notably, it surged eight places to secure the sixth position in the Material Well Being sub-index, with a noteworthy boost in the unemployment indicator, thanks to the country's historically low unemployment rate.
In the Finances in Retirement sub-index, Switzerland reigns supreme, elevating from second place to first with a score of 75%. The country also makes notable advancements in governance, government indebtedness, and tax pressure. Notably, it secures second place in the inflation ranking, further underscoring its economic stability.
Switzerland sustains a solid fifth-place finish in the Health sub-index, displaying consistent performance in health expenditure per capita and insured health expenditure. The Quality of Life sub-index remains strong, shifting from fifth to sixth place, with an impressive ascent in the water and sanitation indicator.
Overall Score: 81%
Iceland retains its third-place standing in the GRI, bolstering its overall score to 81%. Notably, it experiences a significant upswing in the Material Well Being sub-index, particularly marked by a nearly 20-point surge in the unemployment indicator.
The Quality of Life sub-index exhibits slight improvement, driven by an ascent to first place in the water and sanitation indicator. Additionally, Iceland garners commendable results in environmental factors, reflective of its leadership in renewable energy utilization and geothermal regulations.
Within the Health sub-index, Iceland secures the fourth position, boasting an impressive score of 88%, attributable to its high life expectancy and commitment to a healthy lifestyle.
Iceland's performance in the Finances in Retirement sub-index remains stable, maintaining the ninth position. Despite challenges posed by old-age dependency, nonperforming loans, and tax pressure indicators, Iceland manages to improve its interest rate ranking.
Overall Score: 80%
Ireland maintains its fourth-place ranking in the GRI, witnessing a commendable surge in its overall score from 76% to 80%. Notably, improvements in Material Wellbeing and Finances sub-indices contribute significantly to this upswing.
In the Material well-being sub-index, Ireland experiences a substantial drop in the unemployment rate, indicative of a robust post-pandemic economic recovery. This translates into an impressive sixth-place finish in the Finances in Retirement sub-index.
While Ireland's Quality of Life score experiences a marginal dip, it remains committed to biodiversity conservation. In the Health sub-index, the pandemic's impact on life expectancy leads to a slight downturn.
Overall Score: 79%
Luxembourg secured the fifth position, elevating its overall score to 79%. This remarkable performance is underpinned by substantial improvements in the Finances in Retirement sub-index, chiefly driven by gains in interest rates and tax pressure indicators.
Within the Material Well-Being sub-index, Luxembourg maintains its presence within the top ten, aided by improvements in income equality and unemployment indicators.
In the Health sub-index, Luxembourg's score experienced a decline, primarily due to a sudden increase in mortality rates resulting from the global pandemic. Nevertheless, it stands firm in the top ten.
Luxembourg exhibits an unwavering commitment to water and sanitation quality, securing a place within the top ten in this vital indicator.
Overall Score: 79%
The Netherlands, emerging just outside the top five at sixth place, ascends two positions from the previous year. Its performance is well-rounded across all four sub-indices.
Notably, the Netherlands soars ten places in the Finances in Retirement sub-index, reaching the 16th spot, despite challenges in inflation and interest rates. In the Quality of Life sub-index, it advances from ninth to ninth place, while maintaining top ten positions in Health and Material Wellbeing.
Despite facing inflation and interest rate headwinds, the Netherlands' robust economic fundamentals, coupled with a robust pension and healthcare system, solidify its position in the GRI.
Overall Score: 78%
Australia, securing the seventh position, maintains a top-ten ranking for the ninth consecutive year. Although its rank slips two places from the previous year, the overall score demonstrates marked improvement.
Australia achieved the third position in the Finances in Retirement sub-index this year, with a score of 73%. A significant factor behind this boost is the impressive performance in nonperforming loans, despite challenges in inflation and interest rates.
Material well-being sees substantial improvement, with Australia ascending from 19th to 13th place, attributed to a drop in unemployment rates. Health and Quality of Life sub-indices exhibit consistent performance, underlining Australia's strengths in healthcare and air quality.