Australia ranks sixth in the world as a place where retirees do well mainly because of a strong finance rating and quality of life score.
According to the 2016 Global Retirement Index created by Natixis Global Asset Management, Australia scores 78% compared to the top ranked Norway at 86%.
The global index compares the ability of countries to meet the needs of their retirees including finances, health and quality of life.
The top ten countries are dominated by northern Europe, with Norway at number one, followed by Switzerland, Iceland, New Zealand, Sweden and Australia, as this chart shows.
Norway scores 90% for material well-being compared to Australia’s 70%.
However, Australia’s superannuation, currently a compulsory saving of 9.5% of wages, is the centerpiece of what is viewed by many as one of the best retirement systems in the world.
Governance and a low interest rate environment drove Australia’s strong fifth place ranking in overall finances in retirement.
However, Australia’s generous social security benefits are highlighted in the report as a potential weakness because of their impact on government spending and debt.
The second best performance is in health, where Australia is ranked 12th, and performs well in life expectancy and health.
The report says Australia has an impressive quality of life ranking due to strong performances in the happiness indicator and air quality.
However, Australia only manages a top twenty ranking in the material well-being sub-index.
While its income equality scores can still improve, Australia performed fairly well in the income per head and unemployment indicators.
Here’s Australia’s score in detail.
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