On the go: Falls in the UK’s quality of life, financial health and wellbeing have driven the nation’s retirement security ranking down to 19th in Natixis Investment Managers’ global retirement index, representing its fifth successive decline.
The UK dropped one place in the index, with an overall score of 69 per cent — down from 72 per cent in 2021. The country’s ranking has, however, remained fairly consistent over the past decade, with the UK placing 18th in 2012.
A fall in “material wellbeing” was the biggest driver in its placing on the index. This was due to lower scores in income equality and employment indicators, with the UK having the 10th-worst score for income equality.
Its weakened score on finances, meanwhile, was driven by lower scorers in bank non-performing loans and tax pressures, as well as “governance and old-age dependency indicators”, Natixis said.
A lower score on happiness pushed down the UK’s quality of life ranking, where it placed seventh on the index.
The UK’s only improvement was found on Natixis’s health sub-index, where it ranked 21st out of the nations measured. This was due to an increase in health spending per capita.
Norway finished first on the overall index, replacing Iceland, which dropped to third behind Switzerland.
“The challenges that are being faced now and will be faced in the future are clear,” said Andrew Benton, head of northern Europe at Natixis IM.
“Getting retirement right and helping to ensure individuals can live with dignity after their working years is a core sustainability issue for society,” he continued.
“Difficult decisions will have to be made as policymakers strive to reconcile balance sheets with commitments to public retirement and healthcare benefits.”
