Canada ranked 11th in retirement security out of 43 countries, down one spot from last year, according to the 2017 Global Retirement Index published by Natixis Global Asset Management.
Natixis looks at finances, health, material wellbeing and quality of life to determine how well retirees are set up in the developed world.
For material wellbeing, Canada saw a decline in prosperity due to increased income inequality. Canada ranked 21st for income inequality. However, for financial stability, Canada ranked in the top 10. Its tax pressure indicator score improved as well, and there was an increase in the five-year average of real estate interests, which benefits retirees. Canada’s old age dependency ratio increased. This ratio measures the proportion of people age 65 and older to those of working age. A higher ratio means more stress on government programs that support retirees.
For health, Canada finished 10th for both health expenditure per capita and insured health expenditure, which measures the proportion of healthcare expenses covered by insurance. In addition, its score for the life expectancy indicator improved from last year.
“This year’s Global Retirement Index is an important reminder that retirement security is a complex, multi-dimensional issue that is vastly influenced by a nation’s policies, politics and economics,” said Ed Farrington, executive vice president of Retirement for Natixis Global Asset Management. “The population is getting older, making retirement security one of the most pressing social issues facing the world. Factors such as increasing longevity, income inequality and the impact of monetary policy on personal savings and pension liabilities are challenging the long-standing assumptions about how individuals plan for and live in retirement.”
The top 10 countries
The top 10 countries for retirement security were Norway, Switzerland, Iceland, Sweden, New Zealand, Australia, Germany, Denmark, the Netherlands, and Luxembourg.