Pensions  

UK drops out of top 20 for retirement security

UK drops out of top 20 for retirement security

The UK has dropped out of the Natixis global index of the top 20 places for retirement security, research has shown.

The 2015 Global Retirement Index, an analysis of 150 countries published by Natixis Global Asset Management, put the UK in 22nd place.

Chris Jackson, head of UK retail and international products for NGAM, said: “Despite its relative economic strength, the index shows that the UK still has a way to go to stabilise its finances and safeguard the retirement security for its people.

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“As the nation reckons with a growing ageing population and changes to how people can access their pensions, individuals will need to make critical decisions about their own retirement finances.”

The index ranks 150 nations on 20 trends across personal income and finances, health and healthcare quality, and socio-economic factors.

Northern Europe dominated the top 10, taking eight places, with Switzerland and Norway in the top two positions for the third year running.

Australia and New Zealand – third and tenth respectively – were the only non-European countries among the leaders.

Southern European countries such as Greece and Spain which have been forced to cut their social benefit programmes plunged down the rankings with the former down 37 places to 76th and the latter dropping 26 places to 55th.

John Perks, managing director of LV= retirement solutions, said: “One area where advisers can truly demonstrate the value of at retirement advice is recommending the mixing and matching of products for those who want flexibility and a guaranteed income – many pensioners are not aware that combining drawdown and annuity products in one proposition is now a possibility.”

PositionCountryGlobal Retirement Index
1Switzerland82%
2Norway81%
3Australia77%
4Iceland77%
5Netherlands77%
6Sweden77%
7Denmark77%
8Austria76%
9Germany76%
10New Zealand75%
11Luxembourg75%
12Canada74%
13Finland74%
14Republic of Korea73%
15Czech Republic73%
16Belgium72%
17Japan71%
18France71%
19USA71%
20Slovenia71%

Adviser view

Malcolm Steel, a director at Edinburgh-based Mearns & Company, said: “It does strike me that Norway has a very successful social security system though they pay a lot of tax to get that.

“From my point of view the UK is a strong place to retire. Some people leave the UK for better weather but they return for things like the NHS.”