In retirement ranking, 18 countries beat the U.S.-By Anne Tergesen

A national flag of Switzerland flies in front of a branch office of Swiss bank Credit Suisse in Luzern October 30, 2014. REUTERS/Arnd Wiegmann

 

Time for a quick quiz. When it comes to retirement security, would you be better off in: a) the U.S.; b) Canada; c) South Korea; or d) the Czech Republic?

The answer, according to Natixis Global Asset Management, a Paris- and Boston-based company with $894.3 billion under management, is Canada, followed by South Korea and the Czech Republic—with the U.S. bringing up the rear.
For the third year in a row, the U.S. barely cracks the top 20 nations when it comes to retirement security, according to this year’s annual ranking from Natixis. Among the other countries the U.S. trails: top-ranked Switzerland and second-ranked Norway, as well as Australia, New Zealand, Iceland, and Luxembourg. The U.S. also trails Japan, which vaulted from 27th last year to 17th this year, thanks to its “fiscal reforms and health-care improvements,” the report says. And the U.S. barely edges out Slovenia—a country where GDP per capita is nearly half what it is in the states.
Not surprisingly, Western European countries with big commitments to social welfare programs dominate the top 20. While many of these countries have higher tax rates than the U.S., they also have better-funded national retirement programs. Top-ranked Switzerland has a mandatory pension system and a “well-funded universal health system,” says Natixis. Norway came in second thanks to its income equality—a measure with a big impact on retirees, the report adds.

The Natixis Global Retirement Index ranks 150 nations on 20 measures of health, wealth, quality of life, and material well-being that affect retirement security. The measures include per capita income, health-care costs, and longevity figures published by organizations including the World Bank, World Health Organization, the United Nations and Gallup, which polls citizens on their happiness and satisfaction.

While the U.S. is top-ranked on such key financial measures as low inflation and high G.D.P. growth, it lags behind other nations when it comes to access to medical care and income equality.
This is the third year in which Natixis has conducted the survey—and the U.S. hasn’t budged from its number-19 ranking. (Read: U.S. scores poorly in retirement rankings.)
The report takes the U.S. to task because it lacks a retirement savings program with universal access. Only about half of U.S. workers are currently covered by work-based retirement plans, including 401(k) plans. (Read: The promising retirement plan that’s stuck in Congress.)
Here’s how the U.S. ranked on health, wealth, quality of life, and material well-being subcomponents of its overall score:
Public finances: The U.S. ranked 14th in this category, getting its strongest grades for low interest rates and low inflation. But it was weighed down by its high government debt and its aging population, which are likely to strain Social Security and Medicare programs.
Health: On health, the U.S. ranked 19th, up from 21st a year ago, thanks to the expansion of health-care coverage under the Affordable Care Act. On the downside: The U.S. “spends more per capita on medical care than any other nation,” but that “has not yet translated into improved life expectancy,” the report notes.
Quality of life: The U.S. ranked 25th, ranking relatively low in part due to its role as the main producer of carbon dioxide emissions.
Material well-being: Here, the U.S. came in at number 37. While we enjoy relatively high per capita income, our income inequality is greater than in most other countries.
Aside from Japan, countries that saw their rankings improve included Australia, Iceland, Canada, and the Netherlands.
As with last year, several African nations brought up the rear. Togo finished last among the 150 countries, with Central African Republic, Democratic Republic of Congo, Comoros and Lesotho also among the bottom 10. Natixis didn’t comment on why these countries finished toward the bottom, but these nations generally have high poverty levels, very little health infrastructure and few or no established retirement-savings systems.
Here are the top 20 (along with their 2014 rankings):
1. Switzerland (1)
2. Norway (2)
3. Australia (5)
4. Iceland (11)
5. Netherlands (13)
6. Sweden (4)
7. Denmark (6)
8. Austria (3)
9. Germany (7)
10. New Zealand (9)
11. Luxembourg (10)
12. Canada (14)

13. Finland (8)

14. South Korea (17)

15. Czech Republic (16)

16. Belgium (12)

17. Japan (27)

18. France (15)

19. U.S. (19)

20. Slovenia (21)

Culled from MarketWatch.