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Australia ranked seventh for retirement wellbeing

Australia has failed to crack the top five for retirement wellbeing outcomes once again, according to the Natixis Global Retirement Index.

Australia maintained its ranking of seventh place in the latest index for the second consecutive year.

Iceland ranked first for the third consecutive year while the top six country rankings remained unchanged since 2020 - Switzerland, Norway, Ireland, Netherlands, New Zealand.

The index, developed by Natixis Investment Managers and CoreData Research, is designed to provide a snapshot of the relative financial security of retirees in 44 countries.

It ranks countries based on four factors that drive retirement security - the material means to live comfortably in retirement, access to quality financial services to help preserve savings value and maximise income, access to quality health services and a clean and safe environment.

Australia got an overall score of 76%. It ranked fourth in the world for finances in retirement but 10th for health.

Where Australia did poorly was in the material wellbeing area - the means to live comfortably in retirement - ranking 23rd out of the 44 countries.

Natixis surveyed 400 Australian investors as part of the research, finding that 19% were classified as high net worth with more than $1 million in net investable assets, with a further 22% classified as emerging high net worth with US$500,000 to $1 million in net investable assets.

Yet despite this representation, 35% of Australian investors said they were worried retirement would not be an option and 31% agreed they would never have enough money to retire.

This pessimism comes despite Australian investors being less likely to withdraw from their retirement savings than those in other countries during the pandemic. According to the Natixis sample group, only 5.5% reported making a withdrawal from their super - compared to 7% internationally who were forced to dip into their retirement savings.

"While 61% of investors accept they will have to work longer than anticipated, other factors may prevent this from being possible. The survey also highlights the need for investors at all levels of wealth to engage with their retirement," Natixis country head Louise Watson said.

"Working with their superannuation fund and a financial adviser who can tailor an investment portfolio to their needs and goals can highlight strategies investors may not have considered."

Read more: Natixis Global Retirement IndexCoreData ResearchLouise WatsonNatixis Investment Managers