Singapore ranked 28th in global retirement security index

Singapore slipped from 27th to 28th spot in an annual survey on retirement security. The report said compared with 42 other countries surveyed, Singapore has a larger proportion of healthcare expenditure not covered by insurance.
Singapore slipped from 27th to 28th spot in an annual survey on retirement security. The report said compared with 42 other countries surveyed, Singapore has a larger proportion of healthcare expenditure not covered by insurance.ST FILE PHOTO

Nation is 3rd in Asia, after Japan and S. Korea; ranking assesses 18 performance indicators

Singapore slipped one spot to 28th place in a global league table ranking retirement security. The table also placed the country third in Asia, behind Japan and South Korea.

The index incorporates 18 performance indicators that assess factors that drive retirement security.

These indicators are grouped into four categories that cover key aspects for welfare in retirement: the material means to live comfortably; access to quality financial services to help preserve savings value and maximise income; access to quality health services; and a clean and safe environment.

In the finance section, Singapore was knocked down to second place by New Zealand.

New Zealand, to a lesser extent, also declined in some of these indicators, but this was offset by gains in tax areas, according to Natixis Investment Managers, which compiles the annual index.

The top five nations remained the same as last year but there was movement in the rankings.

Switzerland took top spot while Norway, last year's leader, fell two places. Iceland moved up one rank to second. Sweden and New Zealand rounded off the top five.

STABLE ENVIRONMENT

The relatively stable macro socio-economic environment in Singapore over the years has made it conducive for Singaporeans to take stronger ownership in planning for their retirement.

MS MADELINE HO, executive managing director and head of wholesale fund distribution for Asia-Pacific at Natixis Investment Managers.

The report noted that most of the high-scoring countries in this year's index are relatively prosperous with advanced economies and institutions people generally trust.

Six of the top 10 had high income-per-capita scores, and seven are in the top 10 for governance.

People in the countries in the top 10 also benefit from their social programmes, widely accessible healthcare and low levels of income inequality.

Despite Singapore's relatively strong showing, the report showed areas where its performance in retirement security could improve.

For example, relative to the other 42 countries surveyed, a larger portion of healthcare expenditure here is not covered by insurance.

Ms Madeline Ho, executive managing director and head of wholesale fund distribution for Asia-Pacific at Natixis Investment Managers, said: "The index points to a generally favourable financial infrastructure that provides long-term financial strength and stability, which is extremely important for the finances of retirees.

"The relatively stable macro socio-economic environment in Singapore over the years has also made it conducive for Singaporeans to take stronger ownership in planning for their retirement."

A version of this article appeared in the print edition of The Straits Times on September 08, 2018, with the headline 'S'pore ranked 28th in global retirement security index'. Print Edition | Subscribe