The United Kingdom has climbed three spots in the Natixis Investment Managers’ 2023 Global Retirement Index (GRI) to 16th position, the country's first jump in its retirement security standing in five years.

With its overall score rising from 69 per cent to 73 per cent, according the GRI, the United Kingdom is now ahead of countries such as the United States and France.

The United Kingdom's improved situation was partly down to its strong performance in the Finances in Retirement sub-index, where it leaped fourteen places to fifteenth position.

This dramatic upgrade was down to improvements in tax pressure and government indebtedness indicators.

At the same time, the country posted a higher ranking on the interest rates indicator after the Bank of England implemented a series of rate hikes to try and control inflation.

Overall, the top four countries (Norway (1st), Switzerland (2nd), Iceland (3rd), Ireland (fourth)) held their rankings from 2022 in the GRI this year.

Luxembourg moved up two slots to fifth, and Germany has moved into the top 10 at number nine. Australia (7th) and New Zealand (8th) both dropped two spots. And the Czech Republic moved out of the top 10 completely.

Despite the improving picture in the United Kingdom, individual investor research conducted by Natixis Investment Management shows people in the United Kingdom remain concerned about retirement.

While nearly three quarters (73 per cent) of individual investors with close to or over £100,000 in investable assets feel positive about their finances, 60 per cent say inflation is a major investment concern, and 53 per cent say it is significantly impacting the ability to save for retirement.

The survey also found that while 56 per cent of people globally think they will have the freedom to do what they want when they want in retirement, 48 per cent believe "it will take a miracle" for them to retire securely.

In addition to this, 28 per cent say they will have no choice but to live frugally, and 21 per cent think they will have to continue working.

“After a decade of low inflation and double-digit investment returns from equities, many individuals have had unrealistic expectations," commented Natixis Investment Management head of Northern Europe and MENA, Andrew Benton.

"However, the past year has been a reality check and arguably a reset of these expectations.

"Saving alone won’t allow most people to reach their retirement goals, and so investing and working with professionals are important steps to achieving financial security in retirement.

"Whilst retirement security has improved globally and, in the UK, individuals need to set realistic goals and maximise the opportunities to save, no matter how far away retirement may seem.”

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