Switzerland has overtaken Norway as the best country in the world for pensioners, the latest retirement index from investment firm Natixis has found. The alpine nation was given high praise for the material wealth provided to pensioners and the country's high life expectancy but faltered when it came to rising costs.

Global Retirement Index 2024

To create the Global Retirement Index, Natixis analysed 44 countries around the world by the quality of life they offer those in their golden years. Analysts said they hoped the report would be used to promote best practices and highlight nations where pension and retirement benefits are best.

To create the ranking, Natixis rated each nation through 18 different indicators on a percentage scale, from the worst-rated system to the theoretical best. These factors were then incorporated into four categories:

• Health: Life expectancy, spending on healthcare both insured and non-insured.
• Material Wellbeing: Income inequality, salaries per capita, and rate of unemployment.
• Finances in Retirement: Strength of pension system and the overall economy, taxes.
• Quality of Life: Air, water and sanitation quality, biodiversity, environment and happiness.

Each country was then given a score in each of these categories, which was then combined into a percentage score with 100 being considered a utopia for pensioners and retirees.

In the 2024 report, Nataxis wrote that pensioners and pension systems face a litany of challenges. On the government side, ageing populations, lower interest rates and higher public debt all threaten the financial health of pension systems. On the human side, stubbornly high inflation and declining saving rates threaten pensioner purchasing power.

Switzerland takes Norway's crown as best country for pensioners

This year, Switzerland has usurped Norway’s title of being the best country in the world for retirees. The previous front-runner took second place for 2024, with Iceland, Ireland and the Netherlands rounding out the top five.

While it didn’t place first in any subcategory, Switzerland was the only nation to place in the top 10 in all four. In the last year, the country was able to improve its standing due to declining unemployment and improving health and material wellbeing scores. This was mainly thanks to improving life expectancy, higher salaries and a growing economy. 

It was also one of the few countries to receive a perfect 100 percent score for inflation.

Rising costs remain a challenge for Swiss retirees

However, there were some areas for improvement. Natixis noted that the incessant rises in the cost of health insurance in Switzerland are hitting pensioners especially hard. Several quality of life metrics, such as happiness and the quality of the environment, also fell slightly compared to last year.

The question of whether pensions can keep up with the cost of living while remaining financially stable remains a hot-button issue in Switzerland. For instance, the alpine nation recently voted to grant pensioners a 13th month of first pillar pension, on the grounds that pension pots have failed to keep up with rising costs. 

By contrast, the country is due to vote on reforms to BVG second pillar pensions at the latest round of Swiss referendums this September. While the reforms would see those on the lowest incomes receive a higher pension, and make the system more financially stable, the vast majority of pensioners would earn less.

10 best countries on Earth for pensioners

In all, here are the 10 countries which are best for pensioners:

1. Switzerland
2. Norway
3. Iceland
4. Ireland
5. The Netherlands
6. Luxembourg
7. Australia
8. Germany
9. Denmark 
10. New Zealand

For more information about the study, check out the official Natixis website.