The Retirement Experience – A Global Perspective

When one begins the retirement planning process, numerous factors must be considered. 

Though it may come naturally to gravitate toward financial viability as a priority, research shows many more considerations contribute to an enjoyable experience. Among these considerations is where you live globally.

Due to our financial status, the United States of America is widely recognized as the world’s most powerful and influential superpower. However, the Global Retirement Index (GRI) reflects that America ranks significantly lower than many other countries for providing quality retirement resources for our aging adults.

These scores are weighted by percentage out of 100% and are calculated based on points assigned to each key category.

The top four categories that are evaluated for this ranking are:

  • Health: to include resources to manage the financial impact of health-related costs for insured and non-insured aging populations on working society
  • Quality of life: To include overall happiness, recreation opportunities, environmental wellness, and resources to facilitate healthy and enjoyable daily quality of life
  • Material well-being: Comfortable shelter, sufficient income to support recreation, ability to afford amenities and everyday comforts
  • Finances into retirement: Factors to include government debt, banking interest rates, inflation, tax rates, diversity in investment portfolios, and dependency rates of elders on government assistance

As you can see, the United States came in at 69%, whereas Norway took the top spot at 89%. Some of the contrasts in the Norwegian retirement system that contribute to their higher score include:

  • Structured state pension plans begin accruals from the age of 16 and continue to the standard retirement age of 67, with no maximum monthly payout.
  • By culture, 75% of Norwegians over the age of 66 exercises regularly and experience fewer age-related preventable health issues.
  • Most Norwegians have income coming from up to three pension sources (state insurance scheme, employer pensions, and private savings).

Additionally, Norway is an incredibly wealthy country that understands the value of proactive planning for its growing segment of retirees and invests in their well-being accordingly.

Norway makes an unusually high ratio of unconventional government-funded investments in resources for aging adults. They provide numerous programs such as providing grants for renovating buildings and housing for people with dementia to prevent disorientation-related issues, grants to pay for electronic technology to facilitate aging in the home in place of institutionalization, and at age 67 – 97% qualify for state-funded pension plans.

Most Norwegian programs parallel many American offerings, with the more significant difference being the level of financial investment made into the proactive health management of their aging population, elevating their ranking accordingly.

Evaluating the cultures associated with each country on every continent is well beyond the scope of this article. However, the interesting facts and statistics listed below provide insight into how the world’s population of retired adults lives and resources available.

Global aging and retirement trends:

– As of 2020, there were an estimated 414 million Asian people age 65 and older, about 20% higher than the total U.S. population (331.4 million).

– It’s projected that by 2060, there will be more than 1.2 billion Asian people age 65 and older, which implies that one out of every ten people in the world will be an older Asian. 

– However, in Japan’s traditional retirement age of 60, most are only eligible for a basic national pension — about 60,000 yen a month, or about $477 — not enough to cover daily expenses. This leaves many older Japanese remaining in the workforce longer out of necessity.

– South Korea’s poverty rate among older people is close to 40%, and a similar proportion of those 65 and older still work. 

  • In Hong Kong, one in eight older residents works. The ratio is more than a quarter in Japan — compared to 18 percent in the United States.

– Life expectancy has steadily increased in the Middle East (with one exception, see below). For example, it was risen from ∼60 years in 1980 (58 years for men, 62 years for women) to over 70 years in most Middle Eastern countries presently (range: 69 years, Iraq – 80 years, Israel).

– The World Health Organization (WHO) estimates that from 2000 to 2050, the rate of growth of the population above age 65 is projected to be 4%–5%, and the average annual growth rate of the oldest old (85 years and older) will exceed 5% in eleven Arab countries.

– Cancer has become the top risk factor for limited longevity in the middle east, with all other segments enjoying increased life expectancy. The growing prevalence rates of cigarette smoking across Arab countries: older men in Bahrain, Egypt, Jordan, Lebanon, Morocco, and Tunisia reveal a high smoking prevalence (30%–50%). This reduces life expectancy while increasing healthcare costs in an already limited government-funded healthcare system.

– The average U.S. retiree has an income equal to 92% of the average American income, handily outpacing the Scandinavian countries (81%), Germany (85%), Belgium (77%), and many others. Though the U.S. is not at the top of the list by the statistics, HelpAge International ranked the United States #8 among the best countries to grow old in.

Ultimately, no matter where you choose to retire, planning and proactive health management are the most critical factors impacting your quality of life into advanced age.

A healthy lifestyle void of destructive habits will yield many years of experiences, adventures, and first-hand opportunities to see the many countries on this vast planet we share!

Joe Carson B.S. NASM-CPT/FAS/CN

Master Trainer/Functional Aging Specialist/Certified Nutritionist