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The places most prepared for retirement around the world

Everybody should be trying to prepare for retirement, regardless of how long or short their career has been. For the majority of people the city and country in which they live will have a large impact on their lifestyle once they reach retirement age.

A new study by Audley Villages reveals the city in which people are most prepared for retirement. By looking into a variety of metrics, including retirement age, government pension initiatives and health grade of the 37 OECD countries and capital cities, the luxury retirement village developer reveals how retirement planning varies around the world.

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STUDY REVEALS SPAIN IS THE COUNTRY WHERE CITIZENS ARE MOST PREPARED FOR RETIREMENT

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Retirement Readiness -Image 2

Coming in first place, people living in Spain will enjoy the second longest retirement of 22 years on average. Spain has one of the youngest retirement ages at 61 years, yet a long life expectancy of nearly 84 years on average. The country is also in the top 10 when it comes to pensions, with the average pension being 83.4% of a person’s pre-retirement earnings. Spain also boasts the highest health grade - a metric that looks into health risks, availability of clean water, malnutrition and causes of death - meaning retirees are assured they will be looked after as they grow older.

Greece, in second place, has the second lowest retirement age at 60, meaning those planning to retire can expect nearly 22 years of retirement living. The country doesn’t score very well when it comes to financial aid however, with a lower pension offering than many other countries at just 51.1% of pre-retirement earning. A low cost of living and the highest number of GP’s per 1,000 population helps the country take the second place.

Third placed Austria also boasts the fourth highest pension offering, at 89.9% of an individual's pre-retirement earnings. With the average retirement being nearly 20 years long, Austrians are well prepared when it comes to saying farewell to their working days.

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Country

Overall Ranking

Average Retirement Age

Average Life Expectancy

Pension % of pre-retirement earnings

Average annual investment rates of return of retirement savings plans

Health Grade

Number of doctors per 1,000 population

Spain

1

61.7

83.99

83.4

2.6

92.75

4.02

Greece

2

60.85

82.8

51.1

5.1

82.29

6.3

Austria

3

62.15

82.05

89.9

3.4

86.3

5.24

Italy

4

62.4

84.01

91.8

2.3

91.59

4.02

Luxembourg

5

60.9

82.79

90.1

2.5

87.39

2.98

Netherlands

6

63.85

82.78

80.2

6.3

85.86

3.61

Belgium

7

61.05

82.17

66.2

5.1

80.46

3.13

Norway

8

65.1

82.94

51.6

5.4

89.09

4.93

France

9

60.8

83.13

73.6

N/A

86.94

3.37

Portugal

10

66.95

82.65

89.6

3

83.1

5.12

Slovenia

11

61.6

81.85

57.5

4.2

82.72

3.18

Finland

12

63.85

82.48

64.2

5.4

85.89

3.81

Australia

13

64.8

83.94

41

7.7

89.75

3.75

Germany

14

63.8

81.88

51.9

3.5

83.06

4.31

Canada

15

64.75

82.69

50.7

6.5

85.7

2.8

Iceland

16

67

83.52

69.8

7.5

91.44

3.93

Denmark

17

63.8

81.4

70.9

4.7

82.69

4.19

Ireland

18

64.85

82.81

35.9

6.5

84.06

3.34

Czech Republic

19

62.25

79.85

60.3

0.9

77.59

4.04

Hungary

20

61.7

77.31

84.3

5.1

64.43

3.38

Sweden

21

65.9

83.33

53.4

N/A

90.24

4.27

Switzerland

22

65.7

84.25

44.3

3.8

90.93

4.34

Turkey

23

65.6

78.45

93.8

10.9

62.81

1.88

Poland

24

61.7

79.27

35.1

1.6

70.25

2.38

United Kingdom

25

64.15

81.77

28.4

N/A

84.28

2.95

Israel

26

67.7

83.49

57.8

5.2

88.15

3.22

Estonia

27

65.6

79.18

53.1

2.9

73.32

3.48

New Zealand

28

68.1

82.8

42.8

N/A

85.06

3.35

United States

29

67.2

79.11

49.4

4

73.02

2.61

Japan

30

69.95

85.03

36.8

N/A

91.38

2.49

Lithuania

31

63.65

76.41

31

3.7

N/A

4.6

Chile

32

68.35

80.74

37.3

6.9

73.21

2.59

Mexico

33

68.9

75.41

28.6

5

62.09

2.44

Latvia

34

65.2

75.73

54.3

2.4

N/A

3.3

South Korea

35

N/A

83.5

43.4

N/A

85.41

2.39

Colombia

36

65.9

77.87

N/A

8

N/A

2.18

Slovakia

37

N/A

78

65.1

N/A

N/A

3.52

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VIENNA IS THE CITY SECOND MOST PREPARED FOR RETIREMENT

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Madrid takes the crown as the city in which retirees are most prepared for their retirement. Despite Greece beating Austria in the overall countries ranking, Vienna beats Athens to second place when looking at city specific metrics. Cheaper property prices and a better savings regime helps boost Vienna into second place behind Madrid.

Bratislava, Slovakia comes in bottom place with one of the lowest life expectancies at 78 years. It also has one of the smallest retirement communities with just 40,677 people over the age of 65.

Despite having the largest population of over 65’s, at 2,929,678, Mexico City can be found at the bottom end of the table and has been named as the 35th city most prepared for retirement. It has the second highest retirement age of 68 and the third lowest average annual salary ($7,368.23). Even the high percentage of disposable income put into savings (14.69%) cannot increase Mexico City’s position.

City

Country

Ranking

Number of citizens 65+

Average Length of Retirement

% of household disposable income put into savings

Property Price per square metre ($)

Three Course meal for two people ($)

 Fitness Club monthly fee for 2 adults ($)

Madrid

Spain

1

339,583

22.29

2.01

6,130.99

59.53

95.24

Vienna

Austria

2

156,168

19.9

8.23

9,065.23

59.29

65.26

Athens

Greece

3

160,981

21.95

-11.55

1,944.44

47.43

62.54

Rome

Italy

4

192,566

21.61

2.55

8,191.94

71.04

148.86

Luxembourg City

Luxembourg

5

8,515

21.89

15.99

12,976.65

83

113.61

Amsterdam

Netherlands

6

138,455

18.93

10.01

8,830.78

88.93

98.38

Brussels

Belgium

7

139,992

21.12

6.24

4,091.90

71.14

76.66

Lisbon

Portugal

8

135,289

15.7

-2.19

5,248.27

41.5

76.04

Paris

France

9

112,067

22.33

9.11

15,301.15

71.14

88.7

Oslo

Norway

10

81,210

17.84

6.52

10,177.01

105.67

101.72

Sydney

Australia

11

326,896

19.14

10.26

10,577.43

77.38

126.53

Ljubljana

Slovenia

12

27,128

20.25

6

4,409.18

47.43

101.38

Helsinki

Finland

13

67,734

18.63

0.39

9,661.44

85.38

94.86

Berlin

Germany

14

239,062

18.08

10.87

7,386.94

59.53

74.37

Copenhagen

Denmark

15

39,706

17.6

3.68

7,695.73

107.63

89.36

Reykjavik

Iceland

16

7,667

16.52

N/A

4,703.49

120.92

113.1

Toronto

Canada

17

409,098

17.94

1.24

9,166.05

71.16

88.5

Budapest

Hungary

18

148,903

15.61

6.32

3,354.82

38.98

84.24

Prague

Czech Republic

19

110,802

17.6

7.63

6,231.55

36.27

85.6

Dublin

Ireland

20

138,495

17.96

7.51

6,565.00

81.82

94.88

Stockholm

Sweden

21

115,407

17.43

16.02

11,452.07

93.35

105.8

Bern

Switzerland

22

22,104

18.55

16.17

8,460.31

106.88

184.06

Ankara

Turkey

23

605,003

12.85

N/A

742.19

15.64

44.19

Jerusalem

Israel

24

77,250

15.79

N/A

9,502.01

89.91

182.59

Tallinn

Estonia

25

22,010

13.58

9.6

3,314.64

59.29

111.63

Warsaw

Poland

26

176,714

17.57

1.43

4,195.38

38.69

62.25

London

United Kingdom

27

654,464

17.62

0.74

15,276.81

63.25

70.2

Wellington

New Zealand

28

13,444

14.7

-0.32

5,297.39

64.13

76.81

Tokyo

Japan

29

1,293,979

15.08

4.29

11,677.39

45.81

176.65

Santiago

Chile

30

630,405

12.39

9.61

2,701.18

47.54

76.69

Vilnius

Lithuania

31

35,014

12.76

0.62

3,356.41

47.43

69.32

Washington

United States

32

569,697

11.91

7.96

7,099.65

80.03

159.67

Bogota

Colombia

33

797,941

11.98

8.16

1,840.99

21.99

49.38

Seoul

South Korea

34

1,587,366

N/A

7.07

19,087.65

43.82

110.97

Mexico City

Mexico

35

2,929,678

6.51

14.69

2,293.09

36.11

96.56

Riga

Latvia

36

46,630

10.53

-3.04

2,418.02

47.62

87.49

Bratislava

Slovakia

37

40,677

N/A

4.55

4,382.71

41.5

66.56

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INDIVIDUALS ARE MOST FINANCIALLY PREPARED FOR RETIREMENT IN LUXEMBOURG

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Retirement Readiness -Image 3

To rank how financially prepared individuals are in specific countries and cities, we looked at a number of metrics. These include average yearly income, personal pension in comparison to their pre-retirement earnings, the average percentage of disposable income put into savings, annual investment rates of return of retirement savings plans and the percentage of individuals who own their own property.

Luxembourg sits in first position and is the country with the third highest average yearly income, at $73,910. Retirees enjoy 90.1% of their pre-retirement earnings as their pension - the third highest of any other country. People who live in Luxembourg are prepared for a long and comfortable retirement with nearly 16% of their yearly income being put into savings.

Hungary, in fourth place, has the highest percentage of citizens who own their own properties, at 91.7%. This means retirees are able to stay in their own home for longer and have the reassurance of using equity for a cash influx if they need it.

Switzerland comes in nineth place despite having the best saving habits out of all OECD countries. An average of 16.17% of all household disposable income is put into savings, meaning Swiss people can plan ahead and be financially comfortable when heading into retirement.

Country

Ranking

Average yearly income ($)

Pension % of pre-retirement earnings

% of household disposable income put into savings

Average annual investment rates of return of retirement savings plans

% of individuals who own their own property

Luxembourg

1

73,910.00

90.1

15.99

2.5

71.2

Norway

2

82,500.00

51.6

6.52

5.4

81.3

Netherlands

3

53,100.00

80.2

10.01

6.3

69

Hungary

4

16,500.00

84.3

6.32

5.1

91.7

Ireland

5

64,000.00

35.9

7.51

6.5

70.3

Belgium

6

48,030.00

66.2

6.24

5.1

72.3

Denmark

7

63,950.00

70.9

3.68

4.7

60.8

Iceland

8

72,850.00

69.8

N/A

7.5

74.1

Switzerland

9

85,500.00

44.3

16.17

3.8

43.4

United States

10

65,850.00

49.4

7.96

4

65.3

Austria

11

51,460.00

89.9

8.23

3.4

55.2

Finland

12

50,010.00

64.2

0.39

5.4

71.1

Italy

13

34,530.00

91.8

2.55

2.3

72.4

Australia

14

55,100.00

41

10.26

7.7

65.5

Canada

15

46,370.00

50.7

1.24

6.5

66.3

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BRATISLAVA HAS THE CHEAPEST LIFESTYLE FOR RETIREES

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Bratislava - cheapest for retirees

Despite ranking lowest overall when looking at retirement readiness, Bratislava scores consistently well when it comes to the price of property, fitness club memberships and the price of a three course meal - making it the cheapest city when it comes to retirement living. 91.3% of individuals in Bratislava own their own property which helps give financial security. A couple will spend around $41.50 for a meal out and around $66.56 for joint monthly fitness club fees.

Although Ankara in Turkey boasts the cheapest property prices at $742.19 per square metre, 41% of the population do not own their own home. Ankara is also the cheapest city for retirees to enjoy a three course meal, with a couple needing to pay just $15.64 to enjoy a three-course meal at a mid-range restaurant.

Capital City

Country

Ranking

% of individuals who own their own property

Property Price per square metre ($)

Three Course meal for two people ($)

Fitness Club monthly fee for 2 adults ($)

Bratislava

Slovakia

1

91.3

4,382.71

41.5

66.56

Budapest

Hungary

2

91.7

3,354.82

38.98

84.24

Vilnius

Lithuania

3

89.9

3,356.41

47.43

69.32

Ankara

Turkey

4

59

742.19

15.64

44.19

Warsaw

Poland

5

84.2

4,195.38

38.69

62.25

Athens

Greece

6

75.4

1,944.44

47.43

62.54

Mexico City

Mexico

7

80

2,293.09

36.11

96.56

Riga

Latvia

8

80.2

2,418.02

47.62

87.49

Prague

Czech Republic

9

78.6

6,231.55

36.27

85.6

Lisbon

Portugal

10

74.5

5,248.27

41.5

76.04

Tallinn

Estonia

11

81.7

3,314.64

59.29

111.63

Ljubljana

Slovenia

12

74.8

4,409.18

47.43

101.38

Bogota

Colombia

13

N/A

1,840.99

21.99

49.38

Brussels

Belgium

14

72.3

4,091.90

71.14

76.66

Madrid

Spain

15

76.2

6,130.99

59.53

95.24

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THE UNITED KINGDOM RANKS 25TH OVERALL

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UK - ON POSITION 25 FOR RETIREES

Coming in the bottom half of the overall countries table, in 25th place, it seems the United Kingdom has more to do to change perceptions and to ensure its citizens are fully prepared for retirement.

Around 3,572,948 British people are over the age of 65 - the seventh highest number of all countries studied. Unfortunately, British retirees have the second lowest pension compared with other countries studied, with the state pension being just 3.7% of their pre-retirement earnings and overall pension averaging 28.4% of pre-retirement earnings.

Overall, 37% of Brits do not own their own home - the seventh highest country.

Number of citizens 65+

3,572,948.00

Average Retirement Age

64.15

Average Life Expectancy

81.77

Average Length of Retirement

17.62

Average yearly income ($)

42,220.00

Pension % of pre-retirement earnings

28.40

% of household disposable income put into savings

0.74

Average annual investment rates of return of retirement savings plans

N/A

% of individuals who own their own property

63.00

Property Price per square metre ($)

4,178.21

Three Course meal for two people ($)

73.69

Fitness Club monthly fee for 2 adults ($)

81.79

Health Grade

84.28

Number of doctors per 1,000 population

2.95

 

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SOURCES AND METHODOLOGY

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To reveal our findings we created a weighted index looking at 14 different metrics, focussing on key areas including health, financial planning, cost of living and property. The 37 OECD countries, and their respective main cities, were then measured against the metrics, with a different score awarded depending on the findings. Each score was combined to reveal one final score. The higher the score, the more prepared for retirement the country and city was deemed.

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