Singapore slipped out of top 30 countries in global retirement index

Is Singapore failing to meet retirement security needs?

Three countries in Asia Pacific ranked in the top 20 globally for their capacity to meet retirement security needs and expectations, according to the 2014 Global Retirement Index, an analysis of 150 countries published today by Natixis Global Asset Management.

With an overall score of 65% (down from 72% in 2013), Singapore takes the 41st position in this year’s GRI, and is unable to maintain its ranking within the top 30 countries. Singapore is considered to be one of the financial powerhouses of the world and one of the most prosperous Asian economies.

However, recent developments have seen the welfare of their retirees decrease relative to other nations. For instance, a decrease in an already mediocre result for income equality has pushed the Material Wellbeing sub-index even lower into 41st from 34th in 2013.

In terms of the Health sub-index, Singapore’s ranking remains fairly static, with an impressive score for the life expectancy indicator, but with high levels of out-of-pocket health expenditure and low numbers of physicians per capita.

However, the biggest drop sustained by Singapore in this year’s GRI, was the Quality of Life sub-index where its ranking dropped from 29th place to 75th.

This was due to an already weak score in the Biodiversity and Habitat indicator, coupled with a worsening of the Climate Change indicator.

With regards to Singapore’s financial situation for retirees, it performs well above the top 30 average of the Finances in Retirement sub-index. Singaporean retirees are able to benefit from relatively low levels of inflation, and above all limited tax pressure.