Australia moves up the rankings to sixth in global retirement index

Australia has moved up to sixth in the Natixis Global Retirement Index, with an overall score of 77 per cent. The index, created in partnership with CoreData Research, assesses retirement security in 44 countries using 18 indicators across finances in retirement, material wellbeing, health and quality of life.

Australia ranks behind Norway, Ireland, Netherlands, Switzerland and Denmark, but ahead of Germany and Luxembourg and Iceland. The UK and the US, two other major pension markets, rank 15^th and 24^th, respectively.

While there have been improvements in material wellbeing and quality of life in Australia, scores for finances in retirement and health have slowed down. Finances in retirement captures “the soundness of a country’s financial system as well as the level of returns to savings and investment and the preservation of the purchasing power of savings”.

“Australia remains in the upper echelon of finances in retirement, down one place from fifth despite a marginal score dip to 72 per cent,” the report says.

“The inflation indicator however is a drag, sliding five places to 36th as persistent price pressures weigh on the country’s position. The concern resonates strongly among Australian investors with over half (54 per cent) citing inflation as their biggest investment concern in the Natixis Global Survey of Individual Investors 2025.”

The happiness indicator dropped four places to 14^th as a result of financial anxiety: over half of Australian investors (53 per cent) say their long-term financial goals are becoming more fantasy than reality, compared with 38 per cent globally.

Natixis said that Australians think they need $1.1 million to retire securely, which is lower than the average $1.46 million globally. Healthcare costs are higher than expected according to 44 per cent of retirees.

According to Natixis, Australians are under-advised compared to their global counterparts, with 54 per cent of those surveyed saying they don’t seek professional advice, compared to 38 per cent globally.

However, opportunities to save and invest are expanding all over the world, the report said. In Australia the focus is on improving the potential of investments by incorporating private assets in default investments.

“The research highlights an emerging disconnect between the strength of the [super] system and how people feel about their own retirement readiness,” said Danny King, country head of Australia and New Zealand at Natixis Investment Managers.

“The introduction of personalised professional advice via superannuation funds will play a critical role in helping people retire confidently and make informed decisions throughout their retirement journey. Investing for and during retirement is a long-term game and accessible, professional advice is needed to support Australians in what is one of the most important investments in their lives.” 

The report stresses the point of changing from a savings mindset to retirement investment.

“Policymakers around the globe are ensuring individuals have access to savings plans that supplement pension income; qualifying more individuals for coverage; and ensuring continuity of lifetime savings,” the report said.

The 2026 report reveals that advisers’ clients have inflated return expectations, at 11 per cent versus what advisers believe is a more realistic long0term target of 8.8 per cent.

This is tied to the finding that 42 per cent of advisers believe the biggest mistake clients can make is to set unrealistic return expectations, along with underestimating the impact of inflation, as nobody knows what costs and expenses will be like in the next decades; and relying too much on government benefits.

The Global Retirement Index combines data from multiple pieces of research. The Natixis Investment Managers Global Survey of Financial Advisors conducted by CoreData Research between March and May 2026, covering 2950 respondents in 23 countries. The Natixis Investment Managers, Global Survey of Individual Investors, conducted by CoreData Research in February and March 2025 covered 7050 individual investors in 21 countries.