Our global population is getting older. When people consider what makes a place an ideal retirement location, it’s natural to think about white sand beaches, hot climates, and endless sunny days. And, in truth, the right net worth opens up a world of opportunity of where to enjoy one’s golden years. As birth rates decline and life expectancy increases, the share of elderly population is growing in many countries, putting pressure on governments’ ability to fund pension and retirement services.
Additionally, when factoring in rising inflation and other implications, it has become increasingly difficult for many people to afford retirement. While some countries are relatively prepared to handle this increase in the elderly demographic, others are already feeling the squeeze and struggling with the challenges that come with a rapidly aging population. Many countries have been forced to increase their retirement age to keep people in the workforce longer and to ease the burden of public spending on retirement services.
As longevity rises and the retirement aged population continues to increase worldwide, many countries are opting to change their pension policies in an effort to encourage people to stay in the workforce longer. However, government intervention may not be necessary, as many people around the world are already staying in the workforce beyond the traditional retirement age (perhaps more out of necessity than choice).
The Global Retirement Index (GRI) examines retirement from different, more quantitative perspective. This ranking looks at economic factors, state-provided retirement options, and heathcare, among many other elements, to determine which countries are the best to retire in. Using these metrics, a score from 0.01 to 1 is determined for each country, which is then converted to a percentage. The factors are grouped into four overarching categories:
- Health: Health expenditure per capita, life expectancy, and non-insured health expenditure.
- Quality of life: Happiness levels, water and sanitation, air quality, other environmental factors, and biodiversity/habitat.
- Material wellbeing: Income per capita, income equality, and employment levels.
- Finances in retirement: Government indebtedness, old-age dependency, bank non-performing loans, interest rates, inflation, governance, and tax pressure.
Here are the top 20 best countries to retire in around the world.
Rank | Country | Health | Quality of life | Material wellbeing | Finances in retirement | Score |
1. | Norway | 91% | 87% | 79% | 69% | 81% |
2. | Switzerland | 90% | 86% | 69% | 74% | 80% |
3. | Iceland | 88% | 86% | 77% | 68% | 79% |
4. | Ireland | 89% | 80% | 67% | 70% | 76% |
5. | Australia | 88% | 77% | 66% | 72% | 75% |
6. | New Zealand | 85% | 81% | 64% | 71% | 75% |
7. | Luxembourg | 91% | 81% | 72% | 59% | 75% |
8. | Netherlands | 89% | 80% | 78% | 56% | 75% |
9. | Denmark | 86% | 88% | 76% | 54% | 74% |
10. | Czech Republic | 76% | 68% | 84% | 64% | 73% |
11. | Germany | 87% | 80% | 71% | 55% | 72% |
12. | Finland | 84% | 89% | 63% | 55% | 71% |
13. | Sweden | 90% | 87% | 59% | 56% | 71% |
14. | Austria | 86% | 82% | 69% | 54% | 71% |
15. | Canada | 87% | 74% | 58% | 67% | 71% |
16. | Israel | 82% | 74% | 60% | 66% | 70% |
17. | South Korea | 80% | 59% | 68% | 73% | 70% |
18. | United States | 85% | 72% | 56% | 67% | 69% |
19. | United Kingdom | 83% | 82% | 61% | 55% | 69% |
20. | Belgium | 85% | 74% | 70% | 51% | 69% |
Slovenia | 82% | 69% | 77% | 51% | 69% | |
Japan | 91% | 67% | 72% | 51% | 69% |
