With the youngest millennials being 25 and the oldest turning 40 this year, millennials are now a key generation in the workplace. But how prepared are they for retirement? Which countries are preparing the best when it comes to millennials’ retirement?
Our Life Plan has analysed the 37 OECD countries over a range of categories, including retirement age, life expectancy, pension % of pre-retirement earnings, social security retention percentage, average apartment costs to find out which country will be the best for millennials to work and retire in.
Turkey is revealed as the best place for millennials to retire in
With a retirement age of 66, a life expectancy of 78, and the highest pension percentage of pre-retirement earnings, Turkey has been revealed as the best place for millennials’ retirement.
Research also found that out of all the OECD countries, Turkey has the highest average investment rates of return of retirement savings plans. A rate of return is a net gain or loss of investment, over a specified time period. Turkey’s rate of return is 10.9. For comparison, it was found that the Czech Republic’s average investment rate of return is 0.9.
Additionally, apartment costs in Turkey, both in and outside of the city centre, have been revealed as the cheapest. Within the city centre, the average apartment cost (per square m) is £614.9 and outside of the city centre, the price drops to £403.79.
South Korea was found to be the most expensive place to live in the city centre, at £12,068.92, per square metre, whilst Luxembourg was the most expensive place to live outside of the city centre at £7,050.27.
Our Life Plan’s research found that the top five more convenient places for millennial retirement are:
|Country||Average retirement age||Average life expectancy||Pension % pre-retirement earnings||Average investment rates of return of retirement savings plans (%)||Social Security retention (%)||Average apartment cost in City Centre (per square m)||Average apartment cost outside of City Centre (per square m)||Overall score|
South Korea named the worst place for millennial retirement
Due to high apartment costs and low social security retention, South Korea has been named the worst place for millennial retirement, out of the 37 countries analysed. In addition to being the most expensive place to have an apartment (in the city centre), it also scored low for the pension % of the pre-retirement earnings category at only 43.4%.
With one of the highest ages for retirement (69 years old) and the lowest life expectancy (75 years old), Mexico has been revealed as the second-worst country for millennial retirement.
In fact, Mexico scores relatively low for the majority of categories compared to the other countries. For example, Mexico’s pension percentage of pre-retirement earnings is one of the lowest at 28.6%. The only country lower is the United Kingdom at 28.4%. Additionally, Mexico’s average investment rates of return of retirement savings plans are 5%, only half of Turkey’s rate, which is 10.9%.
One category that Mexico scores well in is the average prices of apartments per square metre, both in and outside of the city centre. The research found that the average cost of apartments in a city centre is £796.26, just £181.36 more expensive than the cheapest place, which is Turkey. Outside of the city centre, average apartment prices are £569.11. Again, just slightly more expensive than Turkey.
The top 5 worst countries for millennial retirement are:
|Country||Average retirement age||Average life expectancy||Pension % of pre-retirement earnings||Average investment rates of return of retirement savings plans (%)||Social security retention (%)||Average apartment cost in City Centre (per square m)||Average apartment cost outside of City centre (per square m)||Overall score|
The United Kingdom is revealed as one the worst places in Europe for millennial retirement!
According to Our Life Plan’s research, the United Kingdom is one the worst countries in Europe when it comes to preparing millennials for retirement. Switzerland and Lithuania are the only European countries that rank worse than the UK but not by much. Overall, Switzerland scores 4.56, Lithuania scores 5.54, whilst the UK’s overall score is 5.56.
It’s been revealed that the United Kingdom is the worst country in the category ‘pension percentage of pre-retirement earnings’ at just 28.4%. In contrast, Turkey’s percentage is 93.8%, Italy is 91.8% and Luxembourg 90.1%.
The UK also doesn’t have the best social security retention percentage. Although not the worst, it is only 19.5%. There are 25 countries that have a higher percentage than the UK, 4 of these being more than double: the Czech Republic (44.29%), Slovakia (43.13%), Slovenia (41.97%), and Japan (40.28%).
Furthermore, the United Kingdom comes in the top half of the most expensive countries, for both in and outside of the city centres. In the city centre, the average apartment cost is £4,175.45 and outside of the city centre, £2,963.33.
In Europe, the three cheapest countries are Turkey, Greece and Latvia that are all less than £1500 per square metre. The research calculates that the United Kingdom is 6.7 times more expensive than Turkey, and just over three times more expensive than Greece and Latvia (in the city centre).
Both the UK and Lithuania were very close across all categories, except the life expectancy. The United Kingdom’s life expectancy is five years more than those living in Lithuania – Brits life expectancy is 81, whilst Lithuanians are 76, making the UK’s overall ranking for this category, relatively good.
However, Lithuania’s pension % of pre-retirement earnings is 31%, 2.6% more than in the UK, and their social security retention percentage is 10% higher at 30.62%. It is also one of the cheapest places to live, with average apartment costs at £2,178.09 and £1,315.61 – depending on whether you’re in the city centre or outside of it.
On the other hand, Switzerland’s pension percentage pre-retirement savings is 15% higher than the UK and social security retention is 3.94% higher. Nonetheless, Switzerland is in the top 3 most expensive places to have an apartment, with average prices at £8,917.26 per square metre for a city centre location and £6,275.97 outside of the city centre. These prices drastically altered Switzerland’s overall score, making it 4.65.
Other European countries that aren’t as well prepared for millennials retirement include Latvia, Denmark and Luxembourg.
Top 10 worst European countries for millennials to retire in:
|Country||Average Retirement Age||Average life expectancy||Pension % of |
|Average investment rates of return of retirement savings plans (%)||Social security retention (%)||Average apartment cost in City Centre (per square m||Average apartment cost outside of City Centre (per square m||Overall score|
All country rankings (most to least prepared):
|Countries||Average Retirement Age||Average Life Expectancy||Pension % of pre-retirement earnings||Average investment rates of return of retirement savings plans||Social security retention percentage||Average apartment cost in City Centre (per square m)||Average apartment cost outside of City Centre (per square m)||Overall Score|