In many developed countries, pension security is on the rise, thanks to rising rates, easing inflationary pressures and reduced unemployment in key markets. As the pandemic recedes, some retirees are considering an international move, whether for financial reasons or a desire for a fresh lifestyle and location. The decision about where to settle later in life depends significantly on factors such as the cost of living in the country, quality of life and cultural accessibility.
Norway leads the group as the best country for a comfortable retirement in 2023.
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7 best countries for a comfortable retirement
Here are the 7 best countries for a comfortable retirement:
- Norway
- Switzerland
- Iceland
- Ireland
- Luxembourg
- Netherlands
- Australia
This list is based on the Natixis Global Retirement Index 2023, which rates a list of countries based on these 11 sub-indices:
| Sub-indexes | |
| 1. Health | 2. Quality of life |
| 3. Material well-being | 4. Finances in retirement |
| 5. Dependence on age | 6. Bad loans from banks |
| 7. Inflation | 8. Interest rates |
| 9. Tax pressure | 10. State indebtedness |
| 11. Management | |
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Countries for a comfortable retirement
1. Norway
Overall rating: 83%
Norway continues to rule the Global Retirement Index (GRI), firmly holding the coveted first position with an exemplary overall score of 83%. Within the material well-being sub-index, Norway climbs from second place to first place, boosted by a significant drop in the unemployment rate, reaching a figure that is the lowest in almost a decade. Moreover, Norway is experiencing increased per capita income.
Despite the improvement in results from 69% to 70%, the country fell one place to ninth place in the retirement finance sub-index, primarily due to the increase in non-performing loans in the banking sector. Despite this, Norway is climbing the inflation rate, jumping from 35th last year to an impressive 14th.
Norway consolidated its top spot in the health sub-index, boasting a one percentage point increase attributed to a slight increase in life expectancy. Interestingly, the country manages to prevent the death rate from increasing, despite the long-term impact of the pandemic, thanks to high vaccination rates.
In the quality of life sub-index, Norway maintained its score (87%) and fourth place, confirming its superiority in the water and sanitation indicator. The United Nations is praising Norway’s three-decade-long commitment to improving the quality of drinking water and preserving critical water-related ecosystems.
2. Switzerland
Overall rating: 82%
Switzerland, which has more years of high success, secures second place in the GRI, raising its score from 80% to 82%. Namely, it advanced by eight places to secure the sixth place in the sub-index of material well-being, with a significant increase in unemployment indicators, thanks to the historically low unemployment rate in the country.
In the Retirement Finances sub-index, Switzerland reigns supreme, moving from second place to first with a score of 75%. The country is also making significant progress in governance, government debt and tax burden. Namely, it secures second place on the inflation scale, further emphasizing its economic stability.
Switzerland maintains a solid fifth place in the health sub-index, showing consistent results in health expenditure per capita and health insurance expenditure. The quality of life sub-index remains strong, moving from fifth to sixth place, with an impressive rise in water and sanitation indicators.
3. Iceland
Overall rating: 81%
Iceland maintained its third place in the GRI, raising its overall score to 81%. It is significant that it is experiencing a significant increase in the sub-index of material well-being, especially marked by a jump of almost 20 points in the unemployment indicator.
The quality of life sub-index shows a slight improvement, driven by the rise to first place in the water and sanitation indicator. In addition, Iceland scores commendably on environmental factors, reflecting its leading position in the use of renewable energy and geothermal regulations.
Within the health sub-index, Iceland ranks fourth, with an impressive score of 88%, which can be attributed to its high life expectancy and commitment to a healthy lifestyle.
Iceland’s performance in the Retirement Finances sub-index remains stable, maintaining ninth position. Despite the challenges of old-age dependency, non-performing loans and indicators of tax pressure, Iceland is managing to improve its position in the interest rate rankings.
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4. Ireland
Overall grade: 80%
Ireland retained its fourth place in the GRI rankings, witnessing a commendable increase in the overall score from 76% to 80%. Notably, improvements in the sub-indices of material well-being and finance significantly contribute to this rise.
In the material well-being sub-index, Ireland has seen a significant drop in the unemployment rate, which is an indication of a strong economic recovery after the pandemic. That translates into an impressive sixth place in the Retirement Finances sub-index.
While Ireland’s quality of life rating has seen a marginal decline, Ireland remains committed to biodiversity conservation. In the health sub-index, the impact of the pandemic on life expectancy leads to a slight decline.
5. Luxembourg
Overall rating: 79%
Luxembourg secured fifth place, raising its overall score to 79%. This outstanding performance was underpinned by significant improvements in the Retirement Finances sub-index, driven mainly by gains in interest rates and tax pressure indicators.
Within the material well-being sub-index, Luxembourg maintains its presence in the top ten, supported by improvements in income equality and unemployment indicators.
In the Health sub-index, Luxembourg’s score saw a decline, primarily due to a sharp increase in the death rate as a result of the global pandemic. Nevertheless, it stands firmly in the top ten.
Luxembourg shows an unwavering commitment to water and sanitation quality, securing a place in the top ten for this vital indicator.
6. The Netherlands
Overall rating: 79%
The Netherlands, just outside the top five in sixth place, moved up two positions from the previous year. Its performance is well rounded in all four sub-indices.
Namely, the Netherlands rose ten places in the retirement finance sub-index, reaching 16th place, despite challenges in inflation and interest rates. In the quality of life sub-index, it moves from ninth to ninth place, while maintaining the top ten positions in health and material well-being.
Despite facing inflation and floating interest rates, the Netherlands’ strong economic fundamentals, along with a strong pension and healthcare system, cement its position in the GRI.
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7. Australia
Overall rating: 78%
Australia, which secured seventh place, remains in the top ten for the ninth consecutive year. Although its ranking dropped by two places compared to the previous year, the overall result shows a significant improvement.
Australia ranked third in the Retirement Finances sub-index this year, with a score of 73%. A significant factor behind this increase is the impressive performance in non-performing loans, despite challenges in inflation and interest rates.
Material well-being has improved significantly, with Australia rising from 19th to 13th, attributed to a drop in the unemployment rate. The health and quality of life sub-indices show consistent performance, highlighting Australia’s strength in health care and air quality.
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Categories: Trends
Source: HIS Education