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The Natixis Global Retirement Index (GRI) analyzes 44 developed and developing countries based on various factors that affect retirement security. The U.S. ranked as the 22nd best country to retire in for 2024, down from 20th in 2023.
Key Takeaways
- The Natixis Global Retirement Index (GRI) analyzes various factors that affect retirement security.
- The U.S. ranked as the 22nd best country to retire in for 2024.
- The GRI ranks retirement security in four major groups: the material well-being of older residents, retiree finances, quality of life, and health.
What Is the Global Retirement Index?
Produced by Natixis Investment Managers, the 12-year-old index analyzes the factors that impact retiree well-being in each country. The researchers combine indicators of retirement security in four major groups: the material well-being of older residents, retiree finances, quality of life, and health.
Source: 2024 Natixis Global Retirement Index
The index and accompanying report analyzed data from the International Monetary Fund advanced economies, countries belonging to the Organisation for Economic Co-operation and Development (OCED), and the BRICS countries of Brazil, Russia, India, South Africa, and China.
Important
In 2023, the BRICS bloc agreed to admit Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates.
How the United States Ranks
Health
In 2024, the U.S. ranks in the top 30 for health care, lower than prior years. The U.S. spends more per person on healthcare than any other developed country.
Material Well-Being
The Material Well-Being sub-index is based on performance across three indicators: income equality, income per capita, and unemployment. The United States ranked 24th for 2024, down from 21st in 2023. The lower Material Well-Being sub-index score is due to a lower score in unemployment.
Finances In Retirement
During the COVID-19 pandemic, the U.S. passed the CARES Act, which allowed individuals to take penalty-free hardship withdrawals from their contribution plans. Over 3,000 individuals took out more than the maximum of $100,000 from their accounts. In the Finances in Retirement sub-index, the U.S. ranked 15th in 2024. The score is based on factors like tax pressure, bank nonperforming loans, and government debt.
Quality of Life
The U.S. ranks 23rd for 2024 in this sub-category, down from 21st in 2023. The indicator ranks the happiness of its retirees and environmental factors.
Switzerland, Nordic Countries Lead the Way
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Switzerland, Norway, and Iceland are the top three in the GRI for 2024. The strong presence of Nordic countries is notable, with Denmark coming in 9th place.
What Are Economic Threats to Retirement According to the GRI?
As of 2024, the costs associated with inflation, higher interest rates with market volatility, and extended life or old age health costs are among the factors that negatively affect retirement, according to the GRI.
How Does Inflation Affect Retirees?
Rapidly escalating costs can pose a significant threat to the financial security of retirees by eroding purchasing power.
What Is the Natixis Center for Investor Insight?
The Natixis Center for Investor Insight is a global research initiative that examines the behavior, market trends, and risk perceptions of institutional investors, financial professionals, and individuals.
The Bottom Line
The Natixis Global Retirement Index (GRI) analyzes factors that affect retirement security and ranks 44 countries based on its research. In 2024, the U.S. ranked as the 22nd best country to retire. Switzerland ranked first based on four criteria, including quality of life, health, and finances.