Singapore and China have seen an increase in their overall scores in the Natixis Investment Managers Global Retirement Index 2023, according to findings released on Monday. The index, which evaluates factors such as tax pressures, inflation, and old-age dependency, ranked Singapore 26th and China 38th among other nations, indicating a significant improvement from previous years.
Norway maintained its top position in the index for the second consecutive year with a score of 83%, followed by Switzerland at 82%, Iceland at 81%, and Ireland at 80%. Within the Asia-Pacific region, Australia and New Zealand led, ranking seventh and eighth respectively. South Korea followed next, with Japan and Singapore trailing behind.
The Global Retirement Index is a collaboration between Natixis Investment Managers and CoreData Research. It offers a comprehensive benchmark that incorporates various factors crucial for a secure and healthy retirement. These include financial elements as well as aspects such as access to healthcare, climate conditions, governance state, and general population happiness.
The index ranking system is relative, not absolute, based on an aggregate of mean scores from zero to 100% for 18 performance measures in each of its four sub-indices – finances in retirement, material wellbeing, health, and quality of life. These sub-indices together provide a holistic view of the retiree environment.
In the finances in retirement sub-index for APAC countries, Singapore remained in the top five this year. South Korea saw an increase to second place due to strong performances in bank nonperforming loans and inflation indicators. Australia moved up to third place while China improved significantly from its 33rd position ten years ago to 21st place this year.
In contrast, the US fell two places to 20th in the index due to lower scores for inflation, government debt, and life expectancy. Despite this slip, nearly all developed countries, including the US, received higher overall scores for retirement security over the prior year, mainly due to improved economic conditions.
Despite the overall positive trends, many working Americans expressed concerns about their retirement security. Nearly half of them are worried they won’t have enough money to enjoy retirement, and 47% believe achieving retirement security will require a miracle.
“Despite facing critical challenges and risks, APAC’s position at the top of the finances in retirement sub-index highlights the importance the region places on retirement planning,” said Dora Seow, CEO, Singapore, Natixis Investment Managers.