The world's best countries to retire to in 2018
Anna Tobin
12 January 2018
Where in the world is best to retire to?
When it comes to retirement, some countries offer a much more attractive life than others. Using the Natixis Global Asset Management 2017 Global Retirement Index, we count down the top 25 countries to retire to, based on factors including quality of life, income and healthcare.
25. Slovak Republic
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At 25, the Slovak Republic has the second highest score for overall income equality in the index, yet it has the lowest income per capita of all countries in the top 25. It scored 71% for quality of life index and 60% for material wellbeing index. It needs to work on its healthcare offering though, with life expectancy in the bottom 10 of the countries in the index.
24. Slovenia
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Slovenia saw its quality of life index rise 3% year on year to 66%. This is largely due to reductions in its CO2 emissions and increased usage of renewable electricity. It remains in 24th spot in the overall index for the second year running, however, with a 1% fall in its health index score to 78% and the same drop in its material wellbeing score to 66%.
23. South Korea
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South Korea dropped from 22nd to 23rd in this year's Index. Its material wellbeing index dropped 4% year on year to 75% and although its quality of life index rose 1% to 53%, it ranks poorly for air quality, biodiversity and habitat and environmental factors. It performed well in the finances in retirement index, however.
22. Japan
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A drop in income equality is thought to be largely responsible for Japan falling a place to 22nd this year. At 88%, however, it has the sixth highest health score and it also has the longest life expectancy of any country in the index. Looking at its finances, Japan does have the worst scores in the index for old-age dependency and government indebtedness, but significant improvements have been made in its interest rates and tax pressure indicators.
21. Malta
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Malta moves up two places to 21st this year. Its health index rose 3% to 77% following a gain in its life expectancy indicator and increases in health expenditure per capita and insured health expenditure. Lower CO2 emissions per GDP, a higher prevalence of renewable electricity and rises in the happiness indicator saw its quality of life index rise 2% to 68%. Its material wellbeing index rose 1% to 72%, following improvements in its income per capita and employment indicators.
20. Israel
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Israel dropped from 19th to 20th. Its material wellbeing index fell 1% to 61% because of rising levels of income inequality, although its employment and income per capita indicators rose. Life expectancy and insured health expenditure indicators dropped too. On the upside, its finances in retirement indicator grew 1% to 70%, with a high score for old-age dependency (a measure of the ratio of over 65s to the working aged).
19. France
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France rises one spot to 19th place, improving its scores in all four indices: material wellbeing, finance, quality of life and health. For material wellbeing it saw increases in income equality and income per capita. In quality of life it was boosted by improvements in CO2 emissions and greater use of renewable electricity. Increased life expectancy and greater health insurance provision helped the health indices.
18. United Kingdom
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The UK fell one place to 18th. This follows a fall in its health score from 84% to 83%, although it still has the third-highest score for insured health expenditure among all countries surveyed.
17. United States
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The United States fell three places to 17th. It has the seventh highest public debt as a percentage of GDP of all countries and the sixth-lowest score for income equality, but it enjoys the highest score for health expenditure per capita of all countries in the index and is the sixth-highest for insured health expenditure.
16. Czech Republic
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The Czech Republic jumped two places to 16th. This is thanks to its public finances being healthier due to less public debt and a lower tax burden. Unemployment falls and income per capita rises have also helped strengthen its position, as did lower CO2 emissions per GDP and higher usage of renewable electricity. Its happiness indicator also rose year on year, but its life expectancy score fell.
15. Belgium
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There is no change for Belgium in 15th. Its finance index grew 1% year on year to 62% with low levels of inflation, but it was hindered by having the third-highest tax burden of all countries in the index and the sixth-highest level of public debt. Falls in CO2 emissions per GDP and higher usage of renewable electricity are other bonuses, but the country's air quality could do with improving. Its material wellbeing index slipped 1% to 70%, hit by poor income equality and employment indicators.
14. Ireland
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Ireland leapt two places to 14th. It saw a huge improvement in its finances in retirement index with low levels of inflation, a favourable old-age dependency ratio, a drop in public debt and a low tax burden. Irish citizens have a significantly higher income per capita compared to 2016 too, up by more than $10,000 (£7,379). Meanwhile, lower CO2 emissions per capita, higher usage of renewable electricity and good air quality led to its quality of life index rising 1% to 83%.
13. Austria
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Austria tumbled four places to 13th. It saw declines in its old-age dependency, insured health expenditure and health expenditure per capita indices. Austrian citizens have a longer life expectancy compared to last year though and there was positive news on the environmental front with lower CO2 emissions per capita year on year and a rise in usage of renewable electricity. Austria makes it into the top 10 for income per capita and income equality too.
12. Finland
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Finland dropped one place to 12th. It records poorer scores in interest rates, old-age dependency, governance and government indebtedness, employment and health expenditure per capita compared to last year. On the plus side, it managed an improvement in its environmental factors indicator because it cut its CO2 emissions.
11. Canada
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Falling one spot to 11th, Canada saw higher levels of income inequality compared to last year as well as declines in the employment and income per capita indicators. Its quality of life score also fell due to a slide in the happiness indicator. On the upside, it came ninth in governance and finished tenth for both health expenditure per capita and insured health expenditure. Its life expectancy indicator rose year on year too.
10. Luxembourg
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Luxembourg jumped up three places to 10th and for the second year running it ranked first in the health sub-index, scoring 92%. It rose 2% in the quality of life index to 77% and 6% in the material wellbeing index to 77%. Finance is the only sub-index in which Luxembourg registers a decline year on year and this is down to the impact of lower interest rates.
9. Netherlands
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The Netherlands slipped one place to 9th. It suffered a significant fall in the interest rate indicator and a slight drop in its old-age dependency score. Its health score fell too by 2% to 89%. This is a result of declines in health expenditure per capita and life expectancy indicators, although it does have the highest score in the index for insured health expenditure and the sixth-highest score for health expenditure per capita.
8. Denmark
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Denmark rose four places to 8th, largely down to improvements in quality of life, which rose 2% to 94%. This was down to across-the-board environmental improvements. It's not so strong in the finance stakes though. It has the highest tax burden of any country in the index and the ninth-worst ranking for old-age dependency and interest rate indicators. Looking up it has the sixth-highest governance score of any country and comes ninth for health expenditure per capita and insured health spend.
7. Germany
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There's no movement for Germany at 7th. A slightly lower life expectancy indicator bought its health index down 1% to 86% and it finished seventh overall for health expenditure per capita and eighth for insured health expenditure. It saw a drop in income equality and has the fifth-lowest score for old-age dependency and the eighth-lowest for interest rates among all countries in the index. It did make gains in the environmental factors indicator though.
6. Australia
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Australia has retained its sixth place. It performs particularly well in the finances index. It's in the top 10 countries for tax pressures and government indebtedness, an indication that its public finances are well managed, and ranks seventh in the interest rate indicator. It's got greener too, with a drop in CO2 emissions and growth in renewable electricity. There were falls in income equality and employment indicators though.
5. New Zealand
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Down one to five is New Zealand. The fall is down to a slightly poorer result in material wellbeing, which fell 2% to 66% as a result of a drop in income equality. The finance indicators remain strong. It maintains the highest score of any country for governance and ranks eighth for interest rates and sixth for government indebtedness. Quality of life is rated highly too, with air quality and happiness indicators in the top 10.
4. Sweden
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Up one place to four is Sweden, largely as a result of improvements in health. It saw improvements in health expenditure per capita and its insured health expenditure indicators year on year. Material wellbeing also rose, the consequence of lower unemployment, less income inequality and higher income per capita. The tax burden is smaller too.
3. Iceland
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Iceland holds on to its third place. Although the tax burden is still high, it has managed to reduce its public debt year on year, leading to a better score for government indebtedness. It scored well in governance too and can lay claim to having the highest level of income equality of all countries in the index. Its income per capita and employment indicators also saw improvements.
2. Switzerland
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Sticking at number two is Switzerland, ranking highly in all indices. When it comes to health, it ranks third in both life expectancy and health expenditure per capita. In the quality of life index it came first in the environmental factors indicator, showing improvements in CO2 emissions per GDP and capita; and ranks fourth in the happiness indicator.
1. Norway
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The winner, for the second year in a row, is Norway. Norway achieves the highest score for the happiness indicator of all countries and it saw improvements in CO2 emissions per GDP and comes third in air quality, which adds up to a good quality of life. For material wellbeing, it ranks sixth for employment and third for income equality and income per capita. Health wise, it finished fourth in health expenditure per capita and finance indices show it scored fifth for government indebtedness.
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