UK retirement system is only 17th best in the world

The UK has been ranked 17th out of 44 nations for retirement security behind many of its global counterparts and only one point ahead of the United States of America. 

The latest Investment Managers’ Global Retirement Index places the UK behind Israel, Austria and the Czech Republic and shows that it is well behind front-runners such as the Republic of Ireland, Norway and Iceland.

Its position in the ranking is unchanged in the last 12 months, but digging deeper into the data shows that declines in health, finances and wellbeing caused its accumulated score to drop by one per cent.

Meanwhile, material wellbeing the UK fell by two percentage points to 69 per cent, effectively placing it in 18th place if based solely on this metric – a fall from 15th place since 2017.

This measurement is based on an assessment of income equality, income per capita, and unemployment, so it indicates a decline in personal wealth and income. 

However, looking at other sub-indices, the UK ranked 34th out of 44 for finances in retirement, which is measured on data relating to old-age dependency inflation, real interest rates, and public debt.

Lucas Crasborn from the Global Retirement Index said: “The lack of improvement in old-age dependency, along with high levels of Government indebtedness and a five-year average for real interest rates below zero, have increased the pressure on retirement security in the UK.”

Link: 2019 Global Retirement Index