UK ranks well among large countries for retirement but 14th overall, Natixis finds

Britain ranks highly as a place to spend retirement compared with other large developed economies but falls further down the list when smaller wealthy countries are included, according to the annual Global Retirement Index compiled by asset manager Natixis.

The report, which assessed 44 of the largest and most advanced countries on health, quality of life, material wellbeing and finances in retirement, found the UK placed second among the largest nations — behind Germany — but 14th overall. The index credited improvements in health, particularly life expectancy, with helping the UK narrow gaps left by the pandemic, while financial markers such as income inequality and unemployment slipped slightly over the past year.

Natixis said the UK’s strongest movement was in the health category, where it rose from 18th to 10th place as public-health indicators recovered. The country remained in 11th place for quality of life for the third consecutive year and retained a top position for access to clean water and sanitation, although its air quality score slipped.

The report also highlighted a decline in subjective wellbeing: the UK’s position on happiness moved from 18th to 21st year on year, similar to trends in neighbouring France and Germany. In measures of material wellbeing and retirement finances, the firm noted vulnerabilities tied to the labour market and distributional pressures.

People surveyed by Natixis cited money-related fears about ageing as the dominant concern. Respondents most commonly worried about not having enough money to enjoy old age, with inflation, potential cuts to benefits such as state pensions, insufficient personal savings and the risk of exhausting assets because of care costs also prominent.

"Pressures on retirement across the globe are undeniable," Andrew Benton, head of Northern Europe at Natixis Investment Managers, said in comments accompanying the index. He pointed to labour-market vulnerabilities in the UK and welcomed government steps announced in July to strengthen pension systems, expand choice and enhance consumer protections. "We expect to see more measures in the autumn Budget," he added.

Overall rankings were led by Norway, which took the top spot this year, followed by Ireland. Switzerland, previously among the front-runners, was placed third, with Iceland and Denmark rounding out the top five. Natixis said smaller countries can sometimes achieve faster consensus and reform, citing recoveries in places such as Ireland and Iceland since the 2008 financial crash.

Among larger economies, the UK outperformed Canada, the United States, South Korea, Japan and France in this year’s analysis. The firm said its methodology combines objective indicators — including life expectancy, unemployment and income distribution — with survey data on attitudes and fears about retirement.

Analysts and pension experts have increasingly highlighted demographic trends and economic volatility as complicating factors for retirement security. Natixis said the index reflects growing concern that achieving secure retirement is becoming harder amid shifting demographics, fluctuating personal finances and changing policy landscapes.

The UK government has signalled policy attention to pension structure and consumer protections in recent months, and the forthcoming autumn Budget is expected to set out further measures. Natixis’s findings underscore tensions between improvements in population health and enduring economic and labour-market pressures that shape retirement outcomes.