Personal Finance
Ranked: The Best Countries to Retire In
Ranked: The Best Countries to Retire in Around the World
Our global population is getting older. By 2050, the OECD predicts that 30% of people worldwide will be aged 65 or over.
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.
Which countries are the best equipped to support their senior citizens? This graphic uses data from the 2022 Natixis Global Retirement Index to show the best countries to retire in around the world, based on several different factors that we’ll dig into below.
What Makes a Country Retirement-Friendly?
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.
The Global Retirement Index (GRI) examines retirement from different, more quantitative perspective. The annual report looks at 44 different countries and ranks them based on their retirement security. The index considers 18 factors, which are grouped into four overarching categories:
- Health: Health spend per capita, life expectancy, and non-insured health spend.
- 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 debt, old-age dependency, interest rates, inflation, governance, tax pressure, and bank non-performing loans.
Using these 18 metrics, a score from 0.01 to 1 is determined for each country, which is then converted to a percentage. For a more detailed explanation of the report’s methodology, explore Appendix A (page 72) of the report.
The Top 25 Best Countries to Retire in
With an overall score of 81%, Norway comes in at number one as the most retirement-friendly country on the list.
Rank | Country | Score | Health | Quality of Life | Material Wellbeing | Finances in Retirement |
---|---|---|---|---|---|---|
1 | 🇳🇴 Norway | 81% | 91% | 87% | 79% | 69% |
2 | 🇨🇭 Switzerland | 80% | 90% | 86% | 69% | 74% |
3 | 🇮🇸 Iceland | 79% | 88% | 86% | 77% | 68% |
4 | 🇮🇪 Ireland | 76% | 89% | 80% | 67% | 70% |
5 | 🇦🇺 Australia | 75% | 88% | 77% | 66% | 72% |
6 | 🇳🇿 New Zealand | 75% | 85% | 81% | 64% | 71% |
7 | 🇱🇺 Luxembourg | 75% | 91% | 81% | 72% | 59% |
8 | 🇳🇱 Netherlands | 75% | 89% | 80% | 78% | 56% |
9 | 🇩🇰 Denmark | 74% | 86% | 88% | 76% | 54% |
10 | 🇨🇿 Czech Republic | 73% | 76% | 68% | 84% | 64% |
11 | 🇩🇪 Germany | 72% | 87% | 80% | 71% | 55% |
12 | 🇫🇮 Finland | 71% | 84% | 89% | 63% | 55% |
13 | 🇸🇪 Sweden | 71% | 90% | 87% | 59% | 56% |
14 | 🇦🇹 Austria | 71% | 86% | 82% | 69% | 54% |
15 | 🇨🇦 Canada | 71% | 87% | 74% | 58% | 67% |
16 | 🇮🇱 Israel | 70% | 82% | 74% | 60% | 66% |
17 | 🇰🇷 South Korea | 70% | 80% | 59% | 68% | 73% |
18 | 🇺🇸 United States | 69% | 85% | 72% | 56% | 67% |
19 | 🇬🇧 United Kingdom | 69% | 83% | 82% | 61% | 55% |
20 | 🇧🇪 Belgium | 69% | 85% | 74% | 70% | 51% |
21 | 🇸🇮 Slovenia | 69% | 82% | 69% | 77% | 51% |
22 | 🇯🇵 Japan | 69% | 91% | 67% | 72% | 51% |
23 | 🇲🇹 Malta | 68% | 78% | 61% | 72% | 63% |
24 | 🇫🇷 France | 66% | 90% | 78% | 57% | 48% |
25 | 🇪🇪 Estonia | 66% | 68% | 68% | 60% | 68% |
Norway is at the top of this year’s ranking for several reasons. For starters, it achieved the highest score in the Health category, largely because of its high average life expectancy, which is 83 years old, or 9 years longer than the global average.
Norway also has the highest score of all the countries for Governance, a category gauged by assessing country corruption levels, political stability, and government effectiveness, and is in a three-way tie with Japan and Luxembourg in the Health category.
Second on the list is another European country, Switzerland, with an overall score of 80%. It’s the highest-ranked country for environmental factors, and it also has the highest overall score in the Finances in Retirement category.
A Regional Breakdown
While European countries dominate the top 10 in the ranking, how does Europe rank as a region as a whole? Before diving in, it’s important to note that the study actually breaks up Europe into two sections: Eastern Europe (grouped with Central Asia) and Western Europe.
Rank | Region | Overall Score |
---|---|---|
1 | North America | 69% |
2 | Western Europe | 66% |
3 | Eastern Europe and Central Asia | 49% |
4 | Latin America | 37% |
5 | Asia Pacific | 32% |
And from a regional perspective, North America comes in first place despite the fact no countries in the region made it into the top 10. North America only has two countries included in the ranking: Canada (#15) and the U.S. (#18), which both rank relatively high.
In contrast, Western and Eastern Europe have more countries to account for, which ultimately lowers their regional average.
The Future of Retirement
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.
For instance, in 2018, people in the UK could claim their State Pension once they turned 65. By 2028, this age requirement will be raised to 67.
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).
Personal Finance
Mapped: The Income a Family Needs to Live Comfortably in Every U.S. State
Families in expensive states require over $270,000 annually to live comfortably.
The Income a Family Needs to Live Comfortably in Every U.S. State
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Families in the top five most expensive U.S. states require an annual income exceeding $270,000 to live comfortably.
This visualization illustrates the income necessary for two working adults with two children to maintain a comfortable lifestyle in each state.
“Comfortable” is defined as the income needed to cover a 50/30/20 budget, with 50% allocated to necessities like housing and utilities, 30% to discretionary spending, and 20% to savings or investments.
The calculations for family income needed in each state were done by SmartAsset, using the cost of necessities sourced from the MIT Living Wage Calculator, last updated on Feb. 14, 2024.
Massachusetts Tops the List
Massachusetts is the most expensive state to live comfortably in, requiring a total family income of about $301,184. Hawaii ($294,611) comes in second, followed by Connecticut ($279,885).
Housing is one main reason Massachusetts is an expensive state to live in, particularly in the Boston area. In addition, the state also has a high cost of living, including expenses such as healthcare and utilities.
Rank | State | Income for 2 working adults raising 2 children |
---|---|---|
1 | Massachusetts | $301,184 |
2 | Hawaii | $294,611 |
3 | Connecticut | $279,885 |
4 | New York | $278,970 |
5 | California | $276,723 |
6 | Colorado | $264,992 |
7 | Washington | $257,421 |
8 | Oregon | $257,338 |
9 | New Jersey | $251,181 |
10 | Rhode Island | $249,267 |
11 | Vermont | $248,352 |
12 | Minnesota | $244,774 |
13 | New Hampshire | $244,109 |
14 | Alaska | $242,611 |
15 | Maryland | $239,450 |
16 | Nevada | $237,286 |
17 | Virginia | $235,206 |
18 | Illinois | $231,962 |
19 | Arizona | $230,630 |
20 | Pennsylvania | $230,464 |
21 | Maine | $229,549 |
22 | Delaware | $228,966 |
23 | Wisconsin | $225,056 |
24 | Utah | $218,483 |
25 | Michigan | $214,490 |
26 | Nebraska | $213,075 |
27 | Georgia | $212,826 |
28 | Montana | $211,411 |
28 | Iowa | $211,411 |
30 | Idaho | $211,245 |
31 | North Carolina | $209,331 |
31 | Ohio | $209,331 |
33 | Florida | $209,082 |
34 | Indiana | $206,003 |
35 | New Mexico | $203,923 |
36 | Wyoming | $203,424 |
37 | Missouri | $202,259 |
38 | North Dakota | $202,176 |
39 | Texas | $201,344 |
40 | South Carolina | $200,762 |
41 | Kansas | $196,768 |
42 | Tennessee | $195,770 |
43 | Oklahoma | $194,106 |
44 | Alabama | $193,606 |
45 | South Dakota | $192,608 |
46 | Kentucky | $190,112 |
47 | Louisiana | $189,613 |
48 | West Virginia | $189,363 |
49 | Arkansas | $180,794 |
50 | Mississippi | $177,798 |
Meanwhile, Mississippi is the least expensive state for a family to live comfortably, requiring $177,798 per year. Arkansas ($180,794) comes in second, followed by West Virginia ($189,363). In common, all these states share low prices of housing.
Learn More About Cost of Living From Visual Capitalist
If you enjoyed this post, be sure to check out this graphic, which ranks the median down payment for a house by U.S. state.
-
Healthcare1 week ago
Visualizing Daily Protein Sources by Region
-
Globalization2 weeks ago
Mapped: The Top Exports in Asian Countries
-
Finance2 weeks ago
Ranked: The World’s 50 Largest Private Equity Firms
-
United States2 weeks ago
Mapped: The 10 U.S. States With the Lowest Real GDP Growth
-
United States2 weeks ago
Comparing New and Current U.S. Tariffs on Chinese Imports
-
China2 weeks ago
Which Countries Have the Most Economic Influence in Southeast Asia?
-
Demographics2 weeks ago
The Top 25 Nationalities of U.S. Immigrants
-
Countries2 weeks ago
Ranked: Countries Where Youth are the Most Unhappy, Relative to Older Generations