Finland has been ranked as the best country in Europe for retirement for a second year running, a report by Blacktower Financial Management Group has found.

The analysis used key metrics to analyse pension systems around the world, including public spending, average retirement ages, average pension contributions and the percentage of the population who have participated in pension schemes.

The report found Finland to have high public expenditure on pensions and a strong percentage of the population paying into a pension, Finnish nationals can really make the most of their retirement.

Following Finland, the best countries for pensions are Poland and Sweden. Both boast an average retirement age of 65, below the average of 66, and Sweden has a 100 per cent rate of participation in funded pensions. Poland also has one of the highest contribution rates, with 27.5 per cent of the average wage going toward pensions.

Across the countries in the top 30, the average age that people retired at is 66 years, with the lowest average age of 62 going to Slovenia, Greece, Israel and Turkey. In contrast, Denmark had the highest, with the average pensioner not retiring until the age of 74, which Blacktower said could be because of Denmark’s strong healthcare system.

Some countries have significantly higher contribution rates, such as Italy, where 33 per cent of the average wage is earmarked as a pension contribution. Other countries where people are putting more into their pensions include Spain, at 28.3 per cent, and the Czech Republic at 28 per cent.

“Our research reveals the world’s best countries for pension systems, this research is something to be seriously considered when deciding which country to go live and work overseas,” Blacktower Financial Management group managing director, Gavin Pluck, said.

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