Canada Ranks 11th in Recent Global Retirement Index
Canada holds strong, with an 11th place ranking in the 2017 Natixis Global Retirement Index.
The Natixis Global Retirement Index is now in the fifth year of existence and helps to measure the well being of retirees across the developed world. The index creates a retirement security score, which is based on 18 key factors for retiree welfare, which are found in four categories:
- Quality of Life
- Material Well Being
The overall score for Canada was 76%, which was a combination of many different factors.
One factor includes the decline in the scores for income per capita and employment compared to last year. Although these two factors were not the main contributors to the drop in ranking, they did cause the score to lower a little compared to last year.
Some believe that the overall score for Canada signifies that some Canadians are missing economic growth opportunities, and that they are not saving enough for a secure retirement. While there is some truth to this, on the other hand, the most affluent Canadian, including those who are successful Canadian real estate investors, retire in warmer climates similar to affluent Americans. In conclusion, Canada’s ranking is still far better than the United States.
Good Factors for Canada
Coming in at 11th on the world stage means Canada boasts some great positives.
Canada was in the top 10 for financial stability and while the tax pressure indicator score was 15th, this was an improvement over the past five years. The governance score was also strong, ranking 9th.
Another strong grade for Canada was in health. Canada ranked 10th for health expenditure per capita and for insurance health expenditure.
As shown below, Western Europe countries mainly led the pack, with eight found in the top ten, including:
- Norway at #1
- Switzerland at #2
- Iceland at #3
- Sweden at #4
- Germany at #7
- Denmark at #8
- The Netherlands at #9
- Luxembourg at #10
- Canada at #11
New Zealand and Australia were the other two found in the top ten. These countries all have strong social programs with excellent healthcare and low levels of income inequality, which fuel their high rankings. Even with the 11th position going to Canada, it still beat out both the United States (#17) and the United Kingdom (#18).
Canada was ranked at 11th on the Natixis Global Retirement Index, which is one position lower compared to last year. The health system ranked high, while a decline in prosperity was the leading factor for the drop in ranking. This could change next year as the economy continues to improve, retail grows again, and commercial real estate investment stays strong.