If you’re looking for the best place in the world to retire when you’re finally ready to leave the job behind, here's a hint: It’s not the good old U.S. of A.

In fact, the U.S. doesn’t even make the top 10, according to the Global Retirement Index from Natixis Global Asset Management. The index, the firm says, examines key factors that drive retirement security and provides a comparison tool for best practices in retirement policy across 43 countries.

Natixis considered four factors in arriving at its index ratings. The finances in retirement category considers access to quality financial services and the ability to preserve savings. Then there’s material well-being, which examines retirees’ ability to live comfortably in retirement. Health is the next important category, evaluating retirees’ access to quality health services. Finally there’s quality of life, which focuses on whether a country can provide a clean, safe environment in which to live.

So if it’s not in the top 10, where does the U.S. place? In 14^th place (it actually finished 19^th for the last three years, but because of changes in Natixis’s methodology, the U.S. finished higher in the rankings).

Why so low? It’s thanks in part to income inequality, which not only impairs retirement savings but also actually affects lifespans, as well as a shift from defined benefit to defined contribution plans that has placed responsibility for retirement savings squarely on the shoulders of workers.

This has proved to be a challenge, since most underestimate by a large margin how much they’ll need to save to fund a reasonably comfortable retirement.

In addition, there’s the problem of many U.S. workers not even having access to a retirement savings plan at work—the Department of Labor puts that number at a third of the country’s workforce. Workers' ability to save enough doesn’t necessarily shine even if they do have access to a plan; another Natixis survey of workers found that, even if they have access to a DC plan at work, 40 percent contribute less than 5 percent of their salary annually. That’s far from enough to see them through retirement.

Globally, 77 percent of respondents said they believed they’d have to assume greater responsibility for funding their retirement—and in Switzerland, the second-place finisher, 75 percent of people believe that they’re responsible for funding their own retirement.

Anyway, here are the top 10 retirement destinations for those who are looking for the best they can find—wherever that may be—and some of the reasons they placed as highly as they did.

A rising economy makes Canada, and its capital, Ottawa, Ontario, a good place for retirees. (Photo: Getty)

10. Canada

Canada’s social programs, including health care, are famous—and it does well on income equality and wealth levels, too.

A rising economy and close U.S. ties have helped to make it a good place for retirees. Those who rely on bonds for income during retirement, however, could feel squeezed by low interest rates, and the government is carrying enough debt that it could become a problem in the future as the country’s population ages.

Vienna, capital of Austria (photo: Getty)

Low inflation and high-quality health care make Austria, and its capital city Vienna, desirable to retirees. (Photo: Getty)

9. Austria

Austria boasts a strong level of spending on high-quality health care, and low inflation, both of which give its retirees a leg up once they leave the workplace. In addition, its financial institutions are strong.

However, it shares a common problem with several other top-10 countries: the delicate balance between an aging population and its government debt.

Amsterdam (photo: Getty)

Impressive health care gets The Netherlands, and its capital, Amsterdam (pictured), high ranking for retirees (The Hague is, however, the country's seat of government). (Photo: Getty)

8. The Netherlands

The Netherlands does have high tax rates and an aging population—neither of which bodes well for its social programs or its budget.

However, retirees do well here, thanks to “impressive” health care, good wages and low income inequality; that means that, unlike a number of other developed countries—the U.S. included—not as many of its people are left as far behind when it comes to financial security.

Berlin, the capital city of Germany (photo: Getty)

A strong economy helps Germany, and its capital city Berlin, appeal to retirees' need for security. (Photo: Getty)

7. Germany

Germany has a strong economy, teamed with high per capita incomes, low income inequality and a low unemployment rate. In addition, it provides excellent social programs, which also contribute to retirement security. One potential dark spot on the horizon is its high retiree-to-worker ratio, which could eat up government funds.

Aerial view of Canberra, capital of Australia (photo: Getty)

A strong retirement system benefits retirees in Australia, including its capital city, Canberra. (Photo: Getty)

6. Australia

The strong Australian dollar buys retirees quite a lot, although Natixis said that public services could be building the country’s debt load—and that could cause problems in the future if not closely monitored.

The retirement system is strong, with businesses putting 9.5 percent of a worker’s pay to a private pension; employees are also encouraged to contribute. The state pension plan is means tested.

Sweden, and its capital city, Stockholm, are tops for retirement security, according to Natixis' study. (Photo: Getty)

5. Sweden

Since Sweden is a wealthy country, with income equality, low inflation and “outstanding health care,” it is “a world leader in retirement security—even if taxes are high.” The government doesn’t carry an unmanageable amount of debt, although Natixis warned that this will be something to watch as additional people retire and the cost to support them during their retirement increases.

Wellington, New Zealand (photo: Getty)

New Zealand, and its capital city Wellington, offer much to retirees, including low inflation. (Photo: Getty)

4. New Zealand

Retirees in New Zealand enjoy a confluence of economic factors that make life easier for them: low inflation, rising interest rates and relatively low public debt.

In addition, the country’s 10-year-old KiwiSaver work-based retirement savings program has set an example globally. All new workers are automatically enrolled in the program.

Reykjavik, Iceland (photo: Getty)

In Reykjavik, the capital of Iceland, and in Iceland as a whole, employers are required to offer pensions. (Photo: Getty)

3. Iceland

Iceland is yet another country that requires pensions in the workplace; employers contribute 8 percent, while workers contribute 4 percent.

It also has means-tested public pensions. But when trouble hit its banking system, it tackled the issue head-on to revive its economy; both inflation and government debt have been stabilized.

Bern, Switzerland (Photo: Getty)

Switzerland and its capital Bern are sunny to retirees both in summer and in winter, as they benefit from low inflation and mandatory workplace saving. (Photo: Getty)

2. Switzerland

Another believer in mandatory workplace savings (its program began in 1985), Switzerland also benefits from a high per capita income and low unemployment and inflation. In addition, the country has a state pension system—but even contributions to that workplace savings program are backed by a government guarantee on the rate of interest to be paid.

Excellent health care and a sound financial system benefit retirees in Norway and its capital, Oslo. (Photo: Getty)

1. Norway

Awash in oil wealth, Norway has used its fortunate financial position to assure the well-being of its citizens.

In addition to a sound financial system, it also provides its people with excellent health care. And over the past 10 years, Norway has beefed up its retirement system with an eye toward the future. In addition, Norwegians participate in a mandatory workplace savings program.

Instant Insights /

10 places where retirement security is better than the U.S.

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