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Ranked: The Best Countries to Retire In

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best countries to retire in 2022

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Ranked: The Best Countries to Retire in Around the World

Our global population is getting older. By 2050, the OECD predicts that 30% of people worldwide will be aged 65 or over.

While some countries are relatively prepared to handle this increase in the elderly demographic, others are already feeling the squeeze and struggling with the challenges that come with a rapidly aging population.

Which countries are the best equipped to support their senior citizens? This graphic uses data from the 2022 Natixis Global Retirement Index to show the best countries to retire in around the world, based on several different factors that we’ll dig into below.

What Makes a Country Retirement-Friendly?

When people consider what makes a place an ideal retirement location, it’s natural to think about white sand beaches, hot climates, and endless sunny days. And, in truth, the right net worth opens up a world of opportunity of where to enjoy one’s golden years.

The Global Retirement Index (GRI) examines retirement from different, more quantitative perspective. The annual report looks at 44 different countries and ranks them based on their retirement security. The index considers 18 factors, which are grouped into four overarching categories:

  • Health: Health spend per capita, life expectancy, and non-insured health spend.
  • Quality of Life: Happiness levels, water and sanitation, air quality, other environmental factors, and biodiversity/habitat.
  • Material Wellbeing: Income per capita, income equality, and employment levels.
  • Finances in Retirement: Government debt, old-age dependency, interest rates, inflation, governance, tax pressure, and bank non-performing loans.

Using these 18 metrics, a score from 0.01 to 1 is determined for each country, which is then converted to a percentage. For a more detailed explanation of the report’s methodology, explore Appendix A (page 72) of the report.

The Top 25 Best Countries to Retire in

With an overall score of 81%, Norway comes in at number one as the most retirement-friendly country on the list.

RankCountryScoreHealthQuality
of Life
Material
Wellbeing
Finances in
Retirement
1🇳🇴 Norway81%91%87%79%69%
2🇨🇭 Switzerland80%90%86%69%74%
3🇮🇸 Iceland79%88%86%77%68%
4🇮🇪 Ireland76%89%80%67%70%
5🇦🇺 Australia75%88%77%66%72%
6🇳🇿 New Zealand75%85%81%64%71%
7🇱🇺 Luxembourg75%91%81%72%59%
8🇳🇱 Netherlands75%89%80%78%56%
9🇩🇰 Denmark74%86%88%76%54%
10🇨🇿 Czech Republic73%76%68%84%64%
11🇩🇪 Germany72%87%80%71%55%
12🇫🇮 Finland71%84%89%63%55%
13🇸🇪 Sweden71%90%87%59%56%
14🇦🇹 Austria71%86%82%69%54%
15🇨🇦 Canada71%87%74%58%67%
16🇮🇱 Israel70%82%74%60%66%
17🇰🇷 South Korea70%80%59%68%73%
18🇺🇸 United States69%85%72%56%67%
19🇬🇧 United Kingdom69%83%82%61%55%
20🇧🇪 Belgium69%85%74%70%51%
21🇸🇮 Slovenia69%82%69%77%51%
22🇯🇵 Japan69%91%67%72%51%
23🇲🇹 Malta68%78%61%72%63%
24🇫🇷 France66%90%78%57%48%
25🇪🇪 Estonia66%68%68%60%68%

Norway is at the top of this year’s ranking for several reasons. For starters, it achieved the highest score in the Health category, largely because of its high average life expectancy, which is 83 years old, or 9 years longer than the global average.

Norway also has the highest score of all the countries for Governance, a category gauged by assessing country corruption levels, political stability, and government effectiveness, and is in a three-way tie with Japan and Luxembourg in the Health category.

Second on the list is another European country, Switzerland, with an overall score of 80%. It’s the highest-ranked country for environmental factors, and it also has the highest overall score in the Finances in Retirement category.

A Regional Breakdown

While European countries dominate the top 10 in the ranking, how does Europe rank as a region as a whole? Before diving in, it’s important to note that the study actually breaks up Europe into two sections: Eastern Europe (grouped with Central Asia) and Western Europe.

RankRegionOverall Score
1North America69%
2Western Europe66%
3Eastern Europe and Central Asia49%
4Latin America37%
5Asia Pacific32%

And from a regional perspective, North America comes in first place despite the fact no countries in the region made it into the top 10. North America only has two countries included in the ranking: Canada (#15) and the U.S. (#18), which both rank relatively high.

In contrast, Western and Eastern Europe have more countries to account for, which ultimately lowers their regional average.

The Future of Retirement

As longevity rises and the retirement aged population continues to increase worldwide, many countries are opting to change their pension policies in an effort to encourage people to stay in the workforce longer.

For instance, in 2018, people in the UK could claim their State Pension once they turned 65. By 2028, this age requirement will be raised to 67.

However, government intervention may not be necessary, as many people around the world are already staying in the workforce beyond the traditional retirement age (perhaps more out of necessity than choice).

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Mapped: The Income a Family Needs to Live Comfortably in Every U.S. State

Families in expensive states require over $270,000 annually to live comfortably.

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A map showing the income that two working adults with two children need to live comfortably in each U.S. state.

The Income a Family Needs to Live Comfortably in Every U.S. State

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Families in the top five most expensive U.S. states require an annual income exceeding $270,000 to live comfortably.

This visualization illustrates the income necessary for two working adults with two children to maintain a comfortable lifestyle in each state.

“Comfortable” is defined as the income needed to cover a 50/30/20 budget, with 50% allocated to necessities like housing and utilities, 30% to discretionary spending, and 20% to savings or investments.

The calculations for family income needed in each state were done by SmartAsset, using the cost of necessities sourced from the MIT Living Wage Calculator, last updated on Feb. 14, 2024.

Massachusetts Tops the List

Massachusetts is the most expensive state to live comfortably in, requiring a total family income of about $301,184. Hawaii ($294,611) comes in second, followed by Connecticut ($279,885).

Housing is one main reason Massachusetts is an expensive state to live in, particularly in the Boston area. In addition, the state also has a high cost of living, including expenses such as healthcare and utilities.

RankStateIncome for 2 working adults raising 2 children
1Massachusetts$301,184
2Hawaii$294,611
3Connecticut$279,885
4New York$278,970
5California$276,723
6Colorado$264,992
7Washington$257,421
8Oregon$257,338
9New Jersey$251,181
10Rhode Island$249,267
11Vermont$248,352
12Minnesota$244,774
13New Hampshire$244,109
14Alaska$242,611
15Maryland$239,450
16Nevada$237,286
17Virginia$235,206
18Illinois$231,962
19Arizona$230,630
20Pennsylvania$230,464
21Maine$229,549
22Delaware$228,966
23Wisconsin$225,056
24Utah$218,483
25Michigan$214,490
26Nebraska$213,075
27Georgia$212,826
28Montana$211,411
28Iowa$211,411
30Idaho$211,245
31North Carolina$209,331
31Ohio$209,331
33Florida$209,082
34Indiana$206,003
35New Mexico$203,923
36Wyoming$203,424
37Missouri$202,259
38North Dakota$202,176
39Texas$201,344
40South Carolina$200,762
41Kansas$196,768
42Tennessee$195,770
43Oklahoma$194,106
44Alabama$193,606
45South Dakota$192,608
46Kentucky$190,112
47Louisiana$189,613
48West Virginia$189,363
49Arkansas$180,794
50Mississippi$177,798

Meanwhile, Mississippi is the least expensive state for a family to live comfortably, requiring $177,798 per year. Arkansas ($180,794) comes in second, followed by West Virginia ($189,363). In common, all these states share low prices of housing.

Learn More About Cost of Living From Visual Capitalist

If you enjoyed this post, be sure to check out this graphic, which ranks the median down payment for a house by U.S. state.

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