Retirement security in the UK remains stable despite a challenging market, according to Natixis IM’s 2025 Global Retirement Index

Retirement security remains challenged, as a complicated economic environment, persistent inflation and aging populations continue to weigh on retirement preparedness, according to Natixis Investment Managers’ 2025 Global Retirement Index (GRI).

Created in collaboration with CoreData Research, the GRI offers a comprehensive view of what it takes to enjoy a healthy and secure retirement. Beyond finances, it assesses factors such as healthcare access and cost, climate, governance, and overall population well-being. Rankings are relative, based on 18 performance measures across four sub-indices, Finances in Retirement, Material Wellbeing, Health, and Quality of Life, scored from 0% to 100%, which together provide a full picture of the retirement environment in each country.

In this year’s index, Norway claimed the top spot with an overall score of 83%, displacing last year’s leader, Switzerland (81%). In the UK, retirement security held its position at 14^th place with a score of 72%, a two point decline from last year. The drop comes on the back of losses in the Material Wellbeing and Finances in the Retirement sub-indices.

Material Wellbeing saw the sharpest decline in the UK, decreasing by five percentage points from last year, landing in 26^th place. The UK labour market has shown lingering vulnerability, reflected in the decrease in its unemployment score sending its ranking down to 20^th from 15^th. Alongside this, the income equality score slipped by three percentage points, at a rank of 38^th place compared to 33^rd last year and the UK slid down one place in the Finances in Retirement sub-index to 19^thespite an improved inflation indicator score to 85% from 82% last year, it’s global peers also saw an increase in this sub-index, leading the UK to drop two spots lower at 32^nd place. Overall, Happiness declined from 18^th to 21^st, 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% to 88%, lifting the country eight places to 10^th. Since the pandemic, Health has been the only consistently improving measure, while Quality of Life remains stable in 11^th place. Across most other measures, the UK saw only marginal changes, with old-age dependency, nonperforming loans, interest rates, indebtedness and governance indicators broadly in line with last year.

For the four sub-indices, the UK ranks as follows in the 2025 GRI compared to the year prior:

• 10^th for Health, up from 18^th place last year
• 26^th for Material Wellbeing, falling from 21^st  
• 11^th for Quality of Life, same as last year
• 19^th for Finances in Retirement, falling from 18^th place

Commenting on this year’s results, Andrew Benton, Head of Northern Europe & MEACA, Natixis IM 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.”

A Global View of the 2025 Index

With some significant movement in country rankings, the annual index, shows the advantage smaller countries have when it comes to retirement, with only one large, developed country, Germany (8^th), breaking into the top ten. This appears to result from the ability of smaller nations to reach greater consensus on key issues that affect retirees. On the larger developed countries, UK comes in 2^nd place following Germany in top spot.

The key to attaining a top ten ranking this year comes down to consistency across the sub-indices. Among the overall top ten countries, seven secure top ten finishes in Material Wellbeing and Quality of Life. However, as inflation, rising debt and low interest rates continue to disrupt long-term outcomes, just three countries (Ireland, Switzerland and Australia) finish in the top ten in Finances in Retirement.

• Norway takes top spot this year, having featured in the top 3 since 2012. Its leading position is driven by strong performance in income equality and happiness indicators.
• Ireland rises two places to 2^nd in the GRI rankings, its strongest performance to date, having recorded gains in three sub-indexes, while remaining 1^st in Finance. The most marked improvement comes in the unemployment indicator, as economic growth continues to fuel a strong labour market.
• Germany is the only large, developed country within the top 10, ranking 8th, led by strong performance in Health and Quality of Life.
• Singapore makes the biggest leap in this year’s rankings, climbing to 13^th from 25^th in 2024, a remarkable 12-place jump, largely due to a dramatic improvement in Material Wellbeing.
• France drops out of the top 25 altogether, slipping three places to 27^th with an overall score of 65%.
• Canada records the steepest declines, falling seven spots from 13^th to 20^th with scores decreasing across three of the four sub-indices, most notably in Health.
• New Zealand falls out of the top ten to 12^th following a four-point drop, while Luxembourg remains in the top ten but slips from sixth to ninth, even as it continues to lead the Health sub-index.
• United States rises one place to 21st in the overall rankings this year with a steady score of 70% however declines in scores for both the Material Wellbeing and Quality of Life sub-indices.

Individuals feel the pressure on retirement security

Regardless of where home countries may rank, individuals are finding that retirement security can be an elusive goal in 2025. Burdened by persistent inflation, a more complicated economic environment, and rising public debt levels, 43% of global individual investors say it will take a miracle to achieve retirement security.

Key Risks to Retirement Security in 2025

1. Inflation: Sticky inflation continues to erode retirement savings. According to the 2025 Natixis Survey of Individual Investors, 66% of investors report saving less due to higher everyday costs, 69% say it has reduced the future value of their retirement funds, and 38% say inflation is “killing” their retirement dreams.
2. Savings Responsibility: Inflation concerns cut deep but so do fears of failure, as 25% worry they’ll never save enough for retirement. 78% of investors acknowledge that funding retirement increasingly falls on their shoulders and many are unprepared. Savings goals remain too low and planning assumptions often fail to align with the income needed to last 25 to 30 years in retirement.
3. Pension Pressure: Rising public debt and aging populations are straining national retirement systems. One-third of investors globally worry that government benefits may be cut, reflecting concerns about the impact of tough policy decisions on their personal income.
4. Population Aging: Longer lifespans and aging populations are creating an increasing problem of old age dependency. In OECD countries, the median ratio of people aged 65+ to working-age adults is projected to rise from 32.5% in 2024 to 59.3% by 2050.

To view and download a full copy of the report, visit https://www.im.natixis.com/li/insights/investor-sentiment/2025/global-retirement-index