According to The Natixis Global Retirement Index, the United States of America ranks 19 out of the 150 nations analyzed in the standard of living and retirement study.1 This marks the second year in a row America has ranked in position 19.
The study looks at indicators that determine welfare in retirement. Each country receives individual scores in each of the following categories: health, finances in retirement, quality of life and material well-being.
As of the most recent study, eight of the top ten countries are in Europe, with Switzerland leading the way in the number one slot. Generally, the highest scoring countries have modern, industrialized economies, while the lowest scoring countries have non-existent or under-developed health care systems and ongoing economic issues.
In a summary statement of the study, Natixis Global Asset Management wrote, “The responsibility for financial security in retirement is falling even more heavily on individuals than ever before and this trend is likely to continue as government resources in countries around the world become scarcer…
It is becoming increasingly apparent that to ensure financial security in retirement, individuals need to take personal ownership of their destiny and view planning and saving for retirement as a serious, conscious and strategic pursuit”.
Health
The criteria for the health sub-index includes life expectancy at birth, health costs per capita, the number of physicians per 1,000 people, non-insured health expenditure index, and a hospital beds per 1,000 people.
Each of the top 30 nations in the Natixis Global Retirement Index has modern health care systems. Austria remains in the top spot for another year and the rankings of the countries that scored best in healthcare are similar to last years’ results.
It may be surprising to some that North America did not make the top 10 list due to a shorter life expectancy.
Finances in Retirement
Chile tops the finances sub-index with Australia, Costa Rica, Bahrain, and New Zealand rounding out the top five. The United States comes in at number 22, up from number 28 in 2013. Government debt, inflation and fiscal policies were just some of the study criteria.
Quality of Life
While health and finances will have a significant effect on someone’s quality of life, the quality of life sub-index takes into account things that are experienced directly like air quality, water pollution, and climate change. The United States ranks number 24 in this category, up 2 points from 2013.
Material Well-being
The Material Wellbeing sub index measures income inequality, availability of jobs and individual incomes. Neither the United States nor the United Kingdom made it to the top 30 in 2014.
This is likely due to higher levels of unemployment and income inequality. Norway and Luxembourg took first and second place.
About Reverse Mortgages
While the results of this study may be surprising to some Americans, it is important to realize the opportunity to take action. For some homeowners age 62 or older, a reverse mortgage may be the right solution. It may help folks afford to stay in their homes and have enough cash flow to afford expenses in retirement.
To better understand how a reverse mortgage works. Or to determine your eligibility to apply for a reverse mortgage. It’s a good idea to use a calculator such as ours. Utilizing our reverse mortgage calculator you will receive a general prediction of your eligibility or amount you may receive. As well as provide you with an idea of next steps.