This is the No. 1 country in the world for retirement security

6. Sweden (No. 4 in 2014)

Sweden’s fall from the No. 4 spot last year was due mostly to relatively high levels of unemployment (8 percent) and political instability. Still, the Swedes enjoy a universal welfare system, a top-rated health care system, high life expectancy (82 years) and an increase in quality of life due primarily to government policies aimed at reducing energy consumption and CO2 emissions that contribute to a better and healthier environment.

5. Netherlands (No. 13 in 2014)

The Netherlands managed to jump an impressive eight spots from last year’s rankings. According to the report, the rise is due mostly to an increase in retirees’ finances (thanks to an improvement in the interest rate environment) and the country’s high marks in both health and material well-being. Though the Netherlands made it into the top 5, questions remain in regards to the sustainability of the Dutch welfare state and pension system given negative demographic projections and an increasing old age dependency ratio. 

4. Iceland (No. 11 in 2014)

Although Iceland witnessed the systemic collapse of its three major commercial banks between 2008 and 2011, the government has been able to limit serious, long-term economic damage. In fact, Standard & Poor’s recently upgraded Iceland from negative to stable, illustrating the positive effects of the Icelandic government’s ability to stabilize debt and improve sustainability. Overall, Iceland’s improved banking system and overall economic performance have played a major part in catapulting the country to the No. 4 spot.

3. Australia (No. 5 in 2014)

As the report states, “Australia is one of the fastest-growing developed countries in the world, with a strong services and commodities industry. Australians benefit from a strong welfare system, high income equality and low levels of unemployment (approximately 5 percent).” This, along with low levels of public debt, strong bank balance sheets and low levels of inflation, has helped the country improve its ranking over last year.  One area where Australia could use much improvement, according to the report, is its level of CO2 emissions (energy-intensive industries such as mining are a key component to the country’s economy — and to its high levels of CO2 emissions per capita).

2. Norway (No. 2 in 2014)

Norway once claimed the No. 1 spot on this list, back in 2013. Though the country still cannot claim top spot, it can be proud of its “extremely high quality of life, outstanding health care system and sound financial system,” as the report states. Norway’s government has also proven to be careful managers of its oil wealth — the country runs one of the world’s largest sovereign wealth funds with assets worth over $890 billion. In an impressive move, Norway decreased its level of government debt relative to GDP, from nearly half of GDP (49.6 percent) to one-third (34.1 percent). 

1. Switzerland (No. 1 in 2014)

The Swiss take the No. 1 spot yet again as the country remains a lesson the rest of the world on how to govern a country — and therefore benefit retirees — successfully. As the report states, “Switzerland has an extremely high quality of life and an outstanding health care system, and is one of the world’s leading financial centers as a result of its track record, strong fundamentals and solid regulatory framework.” Switzerland continues to prove that the country has recovered better from the worldwide financial crisis than all its European counterparts. 

To see the full report, click here.