An elderly women sits in the warm sun surrounded by the shadows of winter outside Toronto City Hall
IN PHOTO: An elderly woman sits in the warm sun surrounded by the shadows of winter outside Toronto City Hall December 4. Toronto and most of southern Ontario has been basking in double digit celsius temperatures for the last 10 days making it feel more like early September rather than early December. Reuters

Australia has been named one of the best countries in the world to retire. In the 2015 Global Retirement Index measuring the welfare of retirees, Australia is ranked in third place.

While Switzerland enjoys the top spot in the global index in 2015, Australia has moved up from fifth spot in 2014 to third this year. The retirement index, produced by Natixis Global Asset Management was based on a ranking of countries scoring in 20 performance indicators, including quality health services, safety and comfort. The countries have also scored based on their economic performances.

Out of the top 10 nations, eight countries are from northern Europe. New Zealand, Australia’s neighbouring country is in tenth place. Australia has scored well in all performance indicators, particularly in offering quality of life to its people. The country’s economy has been able to match up to the international standards.

According to Natixis, Australia has relatively low levels of public debt and inflation. The country also has a strong bank balance sheet with low levels of unemployment compared to other countries.

Natixis has noted that Australia has high income equality and a strong welfare system. However, Australia scored low in climate change. The country’s high per capita levels of carbon dioxide emissions and its lack of concrete plan to prevent global warming failed to impress as opposed other countries. Australia scored 28 percent for its initiative to prevent climate change.

The United States has been ranked in 19th place, followed by South Korea and Japan. Unlike Australia that imposes a compulsory superannuation since 1992, only half of the workers in the U.S. have a workplace retirement plan, reports SMH.

The U.K. is in 22nd place as the country is still recovering a financial crisis. Retirees in the UK have also found it difficult to save due to an extended period of low interest rates.

Marketwatch reported saying it was not surprising to see European countries with commitments to social welfare dominated the top 20 list. While many of them have higher tax rates compared to the U.S., they also have well-funded national retirement programs.

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