The annual Global Retirement Index report has revealed that retirement conditions for pensioners in Germany have worsened in 2022. Norway and New Zealand were named among the top 10 countries in the world for people seeking a secure and happy retirement.
The Global Retirement Index, which is carried out annually by Natixis Investment Managers, has reported that living conditions for people retiring in Germany are worse than in previous years. In 2022, Germany took 11th place internationally, falling from eighth place in 2021.
The ranking considers 44 countries internationally and assesses 18 subcategories which are assigned into four different categories: Health, Finances in Retirement, Quality of Life and Material Wellbeing. For each of the 18 subcategories a country receives a score from 0,01 to 1, which is then converted into a percentage. This year, Germany scored an overall score of 72 percent.
In the year when inflation rose to historic highs in Germany, the report named inflation as an “immediate threat to retirement security”. Officially and ominously named Danger Zone: Global retirement security challenges come home to roost in 2022, the report also warned that ageing populations across the world mean that social security systems must be reworked internationally to better support future retirees.
Germany’s future imbalance between the number of people working versus the number claiming pensions is demonstrated in the report using the old-age dependency ratio, which shows the number of people in retirement per every 100 people. In Germany this ratio sat at 36,5 percent in 2020 and will rise to 58,1 percent by 2050.
The 2022 index named Norway as the best country for retirement, with a total score of 81 percent. Since 2012 Norway has received relatively consistent rankings overall and in each of the four categories.
Germany’s neighbouring Switzerland came in second place this year, followed by Iceland and Ireland. And while the top 10 spots were dominated by European countries, Australia and New Zealand also made it into sixth and seventh place respectively.
In all, the best countries for retirement in the world in 2022 are:
For more information, and to see how the ranking is calculated, check out the Natixis website.