The UK held firm at 14th place in the Natixis Investment Managers' (Natixis IM) 2025 Global Retirement Index, despite losses in the country's material wellbeing and finances in retirement scores.

Created in collaboration with CoreData Research, the index assesses factors such as healthcare access and cost, climate, governance, and overall population well-being across four sub-indices, which together provide a full picture of the retirement environment in each country.

Although the UK remained in 14th place, the index revealed a two percentage point decrease in its overall score to 72 per cent, which was attributed to losses in the material wellbeing and finances in retirement sub-indices.

In particular, material wellbeing saw the sharpest decline in the UK, decreasing by five percentage points from last year, landing in 26th place, with the UK's unemployment score falling to 20th place amid "lingering vulnerability" in the UK labour market.

In addition to this, the income equality score slipped by three percentage points, at a rank of 38 compared to 33rd last year, which saw the UK slide down one place in the finances in retirement sub-index to 19th.

Whilst the UK's inflation indicator score improved from 82 per cent to 85 per cent, this was also true for global peers, which meant that the UK actually dropped two spots lower at 32nd place.

The UK's happiness ranking also declined from 18th to 21st, mirroring trends across major European peers, France and Germany.

The health retirement sub-index was the strongest in the UK, where life expectancy scores rose from 78 per cent to 88 per cent, lifting the country eight places to 10th.

This is in line with recent trends, as, since the pandemic, health has been the only consistently improving measure, while quality of life has remained stable in 11th place.

Across most other measures, the UK saw only marginal changes, with old-age dependency, non-performing loans, interest rates, indebtedness, and governance indicators broadly in line with last year.

Despite the slight drop in the overall score, the UK came in second place in terms of the larger developed countries, with Germany (8th) being the only large developed country to break into the top ten. 

However, Natixis IM found that, regardless of where their home country may rank, individuals are finding that retirement security can be an elusive goal in 2025.

The report found that, burdened by persistent inflation, presented with a more complicated economic environment, and concerned about the impact rising public levels will have on government benefits in the future, nearly half (46 per cent) of individual investors say it will take a miracle to achieve retirement security.

Inflation has particularly increased stress levels, as, globally, 66 per cent said they are saving less because of higher everyday costs, while 69 per cent said it has eroded the future value of their retirement savings.

What's more, 38 per cent go so far as to say inflation is killing their retirement dreams.

Commenting on this year’s results, Natixis IM head of Northern Europe * MEACA, Andrew Benton, said: “Pressures on retirement across the globe are undeniable, and the results of the index underscore the importance of proactive planning across all areas to safeguard the future of retirees.

"In the UK, while rankings remain largely consistent, there are clear vulnerabilities in the labour market weighing on progress.

"The government has already signalled action, with reforms announced in July to strengthen pension systems, expand choice, and enhance consumer protections, and we expect to see more measures in the autumn budget.

“Now in its 13th year, the Global Retirement Index reflects a growing concern that achieving retirement security is becoming harder in 2025, with volatility in personal finance, demographics, economics, and policy fuelling uncertainty about life after work.

"Retirement security is a shared responsibility and individuals, governments, financial service providers and employers all have a role to play.”

Read more about the broader rankings across Europe in our sister title, European Pensions. 


 

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