Bloomberg Línea — High inflation is also hitting retirees and people’s retirement prospects, as fuel, food and housing prices are reduce purchasing power and pose difficulties for those planning for life after years of work.
European countries continue to top the ranking as the best countries in which to live for retirees, according to the latest ranking compiled by Natixis Investment Managers and CoreData Research, which for the past 10 years have compiled an annual ranking to determine the countries offer the best conditions for retirement.
The ranking takes into account government policies and state conditions for this demographic group.
The ranking does not evaluate all countries in the world, but includes advanced economies as rated by the International Monetary Fund (IMF), countries that are members of the Organization for Economic Cooperation and Development (OECD) and the BRIC countries (Brazil, Russia, India and China), making for a total of 44 countries.
Norway, Switzerland, Iceland, Ireland and Australia comprise this year’s top five.
In contrast, Chile, Colombia, Brazil and Mexico, the only Latin American countries included in the study, are among the 10 worst places to live for retirees in terms of government policies and economic conditions.
The research evaluates four areas:
- Access to quality health services
- Material means to live comfortably in retirement
- Access to quality financial services to help preserve savings and maximize income
- Quality of life, which includes indices of happiness, air quality, water and sanitation.
Each of the four factors receive a percentage score from 0 to 100%.
Of the 44 possible positions, Chile ranks 34th, Mexico 36th, Colombia 42nd and Brazil 43rd.
But why are these countries at the bottom of the ranking?
Among all the indicators that make up the ranking, all four countries have their lowest score in the material well-being index, with Colombia and Brazil being the worst performers in this area, with scores below 40% , with Brazil scoring just 4%.
Although some of these countries perform relatively better in other sub-indices, such as Chile, which ranks fifth in finance globally, along with Australia, this is not enough to compensate for the low scores they all have for material well-being.
Chile and Brazil remain in the same position this year as in the 2021 ranking, while Mexico moved up one position, since last year it was in 37th place; while Colombia dropped two positions, from 40th to 44th.
For the fourth consecutive year, North America has the highest regional score, with 69%. Western Europe ranked second with an overall score of 66%, followed in third and fourth place by Eastern Europe and Central Asia (49%), followed by Latin America (37%), while the Asia-Pacific region (32%) came in last.
By indicators, Latin America ranked third in finance and quality of life, fourth in health and fifth in its weakness, material well-being.
According to the ranking, Latin America’s performance in material well-being, with a score of only 16%, is the one that significantly holds back its overall results.
According to the companies that compiled the ranking, rapidly rising costs and interest rates that, while promising for long-term asset returns, can be a short-term pain for investors, and are the factors most likely to affect retirements this year.
