They say that life is just beginning in retirement. But in Russia, things are very bad for elderly people who have retired. This is evidenced by Global Pension Benefit Index 2017developed by private asset management holding company Natixis Global Asset Management and CoreData Research, a market research, media, industry and marketing consultancy.
Index compilation methodology
The index includes 18 performance indicators, grouped into four thematic sub-indices. They cover the key aspects of wellbeing at retirement:
- material resources for a secured residence of a pensioner;
- the opportunity to receive quality financial services to help maximize income;
- the opportunity to receive quality medical services;
- clean and safe environment.
The researchers calculated the average score in each category and pooled the scores for the final overall ranking of the 43 countries studied.
Russia in the ranking of the best countries for pensioners took the fortieth line out of forty-three (overall score - 45%), ahead of Brazil, Greece and India. Compared to 2016, her indicators slightly deteriorated in the sub-indices "Material well-being" (35th place) and "Health" (42nd place), but the quality of life (36th place) and "Finance" (43rd position) improved.
And here is what a dozen states look like, in which pensioners live most comfortably.
Eight of the most retirement-friendly countries - Switzerland, Iceland, Denmark, Norway, Sweden, Germany, the Netherlands and Luxembourg - are located in Western Europe. Each of the top 10 countries scores high in at least one sub-index.
- New Zealand has the highest score in the Finance sub-index, at 79%.
- Norway has the highest score in the material well-being sub-index at 91%.
- Luxembourg is ranked first in the Health sub-index (92%).
- Denmark is the leader in environmental quality (94%).
At the same time, the sub-index "Finances for Pensions" turned out to be a stumbling block for a number of participants in the rating. Only four countries on the list of the best - New Zealand, Switzerland, Australia and Norway - are in the top ten in the financial sub-index. Higher tax burden and public debt as a percentage of GDP pushed other countries down the ranks. Some of the best countries for retirees in 2017 also have a small base of young working-age citizens that simply cannot fully provide for senior citizens.
Seven of the top ten countries - Norway, Iceland, Switzerland, Luxembourg, Germany, Denmark and Sweden - are also in the top ten in terms of material well-being.
In addition, the countries at the top of the pension index have high per capita incomes and relatively high levels of income equality.