In 1881, Otto von Bismarck proposed a revolutionary idea – the concept of retirement, where individuals above the age of 70 would receive a state pension, encouraging them to cease working. Over time, this idea has evolved, and today, retirement is not just about financial stability but also encompasses health, quality of life, and material well-being. As the world faces an aging population, with a third expected to be 65 and older by 2050, it becomes crucial to assess how countries are preparing to support their aging citizens in retirement.

The Global Retirement Index: Wealth management company Natixis has analyzed 44 nations based on four main categories affecting retirement: Health, Quality of Life, Material Well-being, and Retirement Finances. Subindices within each category, ranging from healthcare spending to income equality, were used to create a comprehensive ranking. The resulting index provides insights into how well countries are creating supportive environments for retirees.

The Categories:

1. Health:

   • Per capita spend on healthcare

   • Life expectancy

   • Non-insured health spend

2. Quality of Life:

   • Happiness levels

   • Water and sanitation

   • Air quality

   • Environment

   • Biodiversity

3. Material Well-being:

   • Per capita income

   • Income equality

   • Employment levels

4. Retirement Finances:

   • Government debt

   • Old-age dependency

   • Interest rates

   • Inflation

   • Governance

   • Taxes

   • Bank non-performing loans

Top 25 Countries for Retirement in 2024: Norway claims the top spot, driven by outstanding scores in health and material well-being. Life expectancy in Norway stands at 83.3 years, showcasing resilience during the pandemic. Switzerland, Iceland, and Ireland follow, retaining their rankings from the previous year, along with Estonia at the 25th position.

Notable Highlights:

1. Australia (7th):

   • Highest-ranked non-European country

   • Strong performance in retirement finances due to the superannuation pension fund system, valued at $3.5 trillion, the fifth-largest globally.

2. France:

   • Just outside the top 20

   • Faced protests due to a law raising the retirement age to 64

   • Aims to address the old-age dependency ratio to sustain retirement benefits

Addressing the "Silver Tsunami": Countries are proactively addressing the challenges posed by the aging population:

1. China:

   • Gradual shifts in raising the retirement age to tackle both an aging and declining population.

2. Canada:

   • Pursues aggressive immigration to boost the working-age population and increase the benefits pool.

   • Population growth of 10 million since 2010.

3. Technological Advancements:

   • Countries focus on increasing productivity through technology and automation.

   • Emphasis on re-skilling to prevent net job losses and ease the burden on social security systems.

As the world braces for the challenges posed by an aging population, the Top 25 Countries for Retirement in 2024 showcase diverse approaches to creating supportive environments for retirees. From robust healthcare systems to strategic financial planning, each country's unique strengths contribute to their rankings. The ongoing efforts to address the "Silver Tsunami" underscore the global commitment to ensuring a dignified and secure retirement for citizens worldwide.

Best regards,

Sharon Ben-David

Your Safe Money Lady™

Protecting Your Nest Egg, Inc.

Phone: (954) 261-5200