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Ranked: The Best Countries to Retire In

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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 weโ€™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
1๐Ÿ‡ณ๐Ÿ‡ด Norway81%91%87%79%69%
2๐Ÿ‡จ๐Ÿ‡ญ Switzerland80%90%86%69%74%
3๐Ÿ‡ฎ๐Ÿ‡ธ Iceland79%88%86%77%68%
4๐Ÿ‡ฎ๐Ÿ‡ช Ireland76%89%80%67%70%
5๐Ÿ‡ฆ๐Ÿ‡บ Australia75%88%77%66%72%
6๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand75%85%81%64%71%
7๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg75%91%81%72%59%
8๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands75%89%80%78%56%
9๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark74%86%88%76%54%
10๐Ÿ‡จ๐Ÿ‡ฟ Czech Republic73%76%68%84%64%
11๐Ÿ‡ฉ๐Ÿ‡ช Germany72%87%80%71%55%
12๐Ÿ‡ซ๐Ÿ‡ฎ Finland71%84%89%63%55%
13๐Ÿ‡ธ๐Ÿ‡ช Sweden71%90%87%59%56%
14๐Ÿ‡ฆ๐Ÿ‡น Austria71%86%82%69%54%
15๐Ÿ‡จ๐Ÿ‡ฆ Canada71%87%74%58%67%
16๐Ÿ‡ฎ๐Ÿ‡ฑ Israel70%82%74%60%66%
17๐Ÿ‡ฐ๐Ÿ‡ท South Korea70%80%59%68%73%
18๐Ÿ‡บ๐Ÿ‡ธ United States69%85%72%56%67%
19๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom69%83%82%61%55%
20๐Ÿ‡ง๐Ÿ‡ช Belgium69%85%74%70%51%
21๐Ÿ‡ธ๐Ÿ‡ฎ Slovenia69%82%69%77%51%
22๐Ÿ‡ฏ๐Ÿ‡ต Japan69%91%67%72%51%
23๐Ÿ‡ฒ๐Ÿ‡น Malta68%78%61%72%63%
24๐Ÿ‡ซ๐Ÿ‡ท France66%90%78%57%48%
25๐Ÿ‡ช๐Ÿ‡ช Estonia66%68%68%60%68%

Norway is at the top of this yearโ€™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%. Itโ€™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, itโ€™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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Ranked: The Worldโ€™s 100 Biggest Pension Funds

The worldโ€™s 100 largest pension funds are worth over $17 trillion in total. Which ones are the biggest, and where are they located?

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A preview image of some of the largest pension funds in the world. The Government Pension Investment Fund in Japan is the biggest at $1.7 trillion in assets.

Ranked: The Worldโ€™s 100 Biggest Pension Funds

View the high-resolution of the infographic by clicking here.

Despite economic uncertainty, pension funds saw relatively strong growth in 2021. The worldโ€™s 100 biggest pension funds are worth over $17 trillion in total, an increase of 8.5% over the previous year.

This graphic uses data from the Thinking Ahead Institute to rank the worldโ€™s biggest pension funds, and where they are located.

What is a Pension Fund?

A pension fund is a fund that is designed to provide retirement income. This ranking covers four different types:

  • Sovereign funds: Funds controlled directly by the state. This ranking only includes sovereign funds that are established by national authorities.
  • Public sector funds: Funds that cover public sector workers, such as government employees and teachers, in provincial or state sponsored plans.
  • Private independent funds: Funds controlled by private sector organizations that are authorized to manage pension plans from different employers.
  • Corporate funds: Funds that cover workers in company sponsored pension plans.

Among the largest funds, public sector funds are the most common.

The Largest Pension Funds, Ranked

Here are the top 100 pension funds, organized from largest to smallest.

RankFundMarketTotal Assets
1Government Pension Investment Fund๐Ÿ‡ฏ๐Ÿ‡ต Japan$1.7T
2Government Pension Fund๐Ÿ‡ณ๐Ÿ‡ด Norway$1.4T
3National Pension๐Ÿ‡ฐ๐Ÿ‡ท South Korea$798.0B
4Federal Retirement Thrift๐Ÿ‡บ๐Ÿ‡ธ U.S.$774.2B
5ABP๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$630.4B
6California Public Employees๐Ÿ‡บ๐Ÿ‡ธ U.S.$496.8B
7Canada Pension๐Ÿ‡จ๐Ÿ‡ฆ Canada$426.7B
8National Social Security๐Ÿ‡จ๐Ÿ‡ณ China$406.8B
9Central Provident Fund๐Ÿ‡ธ๐Ÿ‡ฌ Singapore$375.0B
10PFZW๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$315.5B
11California State Teachers๐Ÿ‡บ๐Ÿ‡ธ U.S.$313.9B
12New York State Common๐Ÿ‡บ๐Ÿ‡ธ U.S.$267.8B
13New York City Retirement๐Ÿ‡บ๐Ÿ‡ธ U.S.$266.7B
14Local Government Officials๐Ÿ‡ฏ๐Ÿ‡ต Japan$248.6B
15Employees Provident Fund๐Ÿ‡ฒ๐Ÿ‡พ Malaysia$242.6B
16Florida State Board๐Ÿ‡บ๐Ÿ‡ธ U.S.$213.8B
17Texas Teachers๐Ÿ‡บ๐Ÿ‡ธ U.S.$196.7B
18Ontario Teachers๐Ÿ‡จ๐Ÿ‡ฆ Canada$191.1B
19National Wealth Fund๐Ÿ‡ท๐Ÿ‡บ Russia$180.7B
20AustralianSuper๐Ÿ‡ฆ๐Ÿ‡บ Australia$169.1B
21Labor Pension Fund๐Ÿ‡น๐Ÿ‡ผ Taiwan$168.9B
22Washington State Board๐Ÿ‡บ๐Ÿ‡ธ U.S.$161.5B
23Public Institute for Social Security๐Ÿ‡ฐ๐Ÿ‡ผ Kuwait$160.0B
24ATP๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark$155.4B
25Wisconsin Investment Board๐Ÿ‡บ๐Ÿ‡ธ U.S.$147.9B
26Future Fund๐Ÿ‡ฆ๐Ÿ‡บ Australia$147.9B
27Boeing๐Ÿ‡บ๐Ÿ‡ธ U.S.$147.2B
28Employees' Provident๐Ÿ‡ฎ๐Ÿ‡ณ India$145.0B
29New York State Teachers๐Ÿ‡บ๐Ÿ‡ธ U.S.$144.4B
30North Carolina๐Ÿ‡บ๐Ÿ‡ธ U.S.$137.1B
31Alecta๐Ÿ‡ธ๐Ÿ‡ช Sweden$136.7B
32GEPF๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa$129.1B
33California University๐Ÿ‡บ๐Ÿ‡ธ U.S.$125.3B
34Bayerische Versorgungskammer๐Ÿ‡ฉ๐Ÿ‡ช Germany$122.0B
35Ohio Public Employees๐Ÿ‡บ๐Ÿ‡ธ U.S.$121.6B
36AT&T๐Ÿ‡บ๐Ÿ‡ธ U.S.$119.5B
37Public Service Pension Plan๐Ÿ‡จ๐Ÿ‡ฆ Canada$117.9B
38National Federation of Mutual Aid๐Ÿ‡ฏ๐Ÿ‡ต Japan$117.1B
39Metaal/tech. Bedrijven๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$115.8B
40IBM๐Ÿ‡บ๐Ÿ‡ธ U.S.$115.4B
41Universities Superannuation๐Ÿ‡ฌ๐Ÿ‡ง UK$111.2B
42Virginia Retirement๐Ÿ‡บ๐Ÿ‡ธ U.S.$110.0B
43Pension Fund Association๐Ÿ‡ฏ๐Ÿ‡ต Japan$109.8B
44Raytheon Technologies๐Ÿ‡บ๐Ÿ‡ธ U.S.$108.9B
45Michigan Retirement๐Ÿ‡บ๐Ÿ‡ธ U.S.$108.0B
46Aware Super๐Ÿ‡ฆ๐Ÿ‡บ Australia$107.5B
47New Jersey๐Ÿ‡บ๐Ÿ‡ธ U.S.$104.5B
48Minnesota State Board๐Ÿ‡บ๐Ÿ‡ธ U.S.$102.9B
49PFA Pension๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark$102.7B
50Kaiser๐Ÿ‡บ๐Ÿ‡ธ U.S.$101.0B
51Georgia Teachers๐Ÿ‡บ๐Ÿ‡ธ U.S.$100.9B
52Oregon Public Employees๐Ÿ‡บ๐Ÿ‡ธ U.S.$100.4B
53Massachusetts PRIM๐Ÿ‡บ๐Ÿ‡ธ U.S.$98.5B
54Qsuper๐Ÿ‡ฆ๐Ÿ‡บ Australia$96.5B
55General Motors๐Ÿ‡บ๐Ÿ‡ธ U.S.$96.1B
56Ontario Municipal Employees๐Ÿ‡จ๐Ÿ‡ฆ Canada$95.7B
57Ohio State Teachers๐Ÿ‡บ๐Ÿ‡ธ U.S.$95.1B
58AP Fonden 7๐Ÿ‡ธ๐Ÿ‡ช Sweden$94.4B
59Healthcare of Ontario๐Ÿ‡จ๐Ÿ‡ฆ Canada$90.5B
60General Electric๐Ÿ‡บ๐Ÿ‡ธ U.S.$90.5B
61Employees' Pension Fund๐Ÿ‡ฎ๐Ÿ‡ณ India$89.5B
62Bouwnijverheid๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$88.5B
63UPS๐Ÿ‡บ๐Ÿ‡ธ U.S.$86.8B
64United Nations Joint Staff๐Ÿ‡บ๐Ÿ‡ธ U.S.$86.2B
65Lockheed Martin๐Ÿ‡บ๐Ÿ‡ธ U.S.$85.7B
66Quebec Pension๐Ÿ‡จ๐Ÿ‡ฆ Canada$81.4B
67National Public Service๐Ÿ‡ฏ๐Ÿ‡ต Japan$79.9B
68Tennessee Consolidated๐Ÿ‡บ๐Ÿ‡ธ U.S.$79.0B
69Royal Bank of Scotland Group๐Ÿ‡ฌ๐Ÿ‡ง UK$78.3B
70Bank of America๐Ÿ‡บ๐Ÿ‡ธ U.S.$76.3B
71BT Group๐Ÿ‡ฌ๐Ÿ‡ง UK$74.3B
72Keva๐Ÿ‡ซ๐Ÿ‡ฎ Finland$73.3B
73Ford๐Ÿ‡บ๐Ÿ‡ธ U.S.$72.8B
74PME๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands$72.7B
75Los Angeles County Employees๐Ÿ‡บ๐Ÿ‡ธ U.S.$72.7B
76Quebec Government & Public๐Ÿ‡จ๐Ÿ‡ฆ Canada$72.4B
77UniSuper๐Ÿ‡ฆ๐Ÿ‡บ Australia$72.1B
78Northrop Grumman๐Ÿ‡บ๐Ÿ‡ธ U.S.$72.0B
79Pennsylvania School Employees๐Ÿ‡บ๐Ÿ‡ธ U.S.$70.4B
80Lloyds Banking Group๐Ÿ‡ฌ๐Ÿ‡ง UK$69.7B
81Ilmarinen๐Ÿ‡ซ๐Ÿ‡ฎ Finland$69.1B
82Colorado Employees๐Ÿ‡บ๐Ÿ‡ธ U.S.$68.6B
83Maryland State Retirement๐Ÿ‡บ๐Ÿ‡ธ U.S.$68.5B
84AMF Pension๐Ÿ‡ธ๐Ÿ‡ช Sweden$67.3B
85Varma๐Ÿ‡ซ๐Ÿ‡ฎ Finland$67.1B
86Wells Fargo๐Ÿ‡บ๐Ÿ‡ธ U.S.$66.0B
87Sunsuper๐Ÿ‡ฆ๐Ÿ‡บ Australia$66.0B
88Verizon๐Ÿ‡บ๐Ÿ‡ธ U.S.$64.1B
89Illinois Teachers๐Ÿ‡บ๐Ÿ‡ธ U.S.$64.0B
90J.P. Morgan Chase๐Ÿ‡บ๐Ÿ‡ธ U.S.$62.8B
91Electricity Supply Pension๐Ÿ‡ฌ๐Ÿ‡ง UK$62.5B
92FedEx๐Ÿ‡บ๐Ÿ‡ธ U.S.$60.7B
93Nevada Public Employees๐Ÿ‡บ๐Ÿ‡ธ U.S.$58.8B
94B.C. Municipal๐Ÿ‡จ๐Ÿ‡ฆ Canada$58.7B
95AP Fonden 4๐Ÿ‡ธ๐Ÿ‡ช Sweden$57.7B
96Missouri Schools & Education๐Ÿ‡บ๐Ÿ‡ธ U.S.$57.0B
97AP Fonden 3๐Ÿ‡ธ๐Ÿ‡ช Sweden$55.9B
98Social Insurance Funds๐Ÿ‡ป๐Ÿ‡ณ Vietnam$55.7B
99Organization for Workers๐Ÿ‡ฏ๐Ÿ‡ต Japan$55.6B
100Illinois Municipal๐Ÿ‡บ๐Ÿ‡ธ U.S.$54.9B

U.S. fund data are as of Sep. 30, 2021, and non-U.S. fund data are as of Dec. 31, 2021. There are some exceptions as noted in the graphic footnotes.

Japanโ€™s Government Pension Investment Fund (GPIF) is the largest in the ranking for the 21st year in a row. For a time, the fund was the largest holder of domestic stocks in Japan, though the Bank of Japan has since taken that title. Given its enormous size, investors closely follow the GPIFโ€™s actions. For instance, the fund made headlines for deciding to start investing in startups, because the move could entice other pensions to make similar investments.

America is home to 47 funds on the list, including the largest public sector fund: the Thrift Savings Plan (TSP), overseen by the Federal Retirement Thrift Investment Board. Because of its large financial influence, both political parties have been accused of using it as a political tool. Democrats have pushed to divest assets in fossil fuel companies, while Republicans have proposed blocking investment in Chinese-owned companies.

Russiaโ€™s National Wealth Fund comes in at number 19 on the list. The fund is designed to support the public pension system and help balance the budget as needed. With Russiaโ€™s economy facing difficulties amid the Russia-Ukraine conflict, the government has also used it as a rainy day fund. For instance, Russia has set aside $23 billion from the fund to replace foreign aircraft with domestic models, because Western sanctions have made it difficult to source replacement parts for foreign planes.

The Future of Pension Funds

The biggest pension funds can have a large influence in the market because of their size. Of course, they are also responsible for providing retirement income to millions of people. Pension funds face a variety of challenges in order to reach their goals:

  • Geopolitical conflict creates volatility and uncertainty
  • High inflation and low interest rates (relative to long-term averages) limit return potential
  • Aging populations mean more withdrawals and less fund contributions

Some pension funds are turning to alternative assets, such as private equity, in pursuit of more diversification and higher returns. Of course, these investments can also carry more risk.

Ontario Teachersโ€™ Pension Plan, number 18 on the list, invested $95 million in the now-bankrupt cryptocurrency exchange FTX. The plan made the investment through its venture growth platform, to โ€œgain small-scale exposure to an emerging area in the financial technology sector.โ€

In this case, the investmentโ€™s failure is expected to have a minimal impact given it only made up 0.05% of the planโ€™s net assets. However, it does highlight the challenges pension funds face to generate sufficient returns in a variety of macroeconomic environments.

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