Many people consider relocating to other countries upon retirement, but this requires careful research and planning, taking into account social security, healthcare, and finances, as noted by a study from American consulting firm Mercer.

Mercer, an American consultancy, publishes an annual report analyzing 47 different pension systems worldwide, often placing European nations at the top. In fact, Iceland (average score of 84.6), the Netherlands (average score of 84.4), and Denmark (average score of 81.8) have been leading the global index of the Mercer CFA Institute since 2021.

This year, the Netherlands scored the highest overall index value (85), owing to its robust benefits, solid asset base, and healthy regulation, while popular European destinations such as Spain, Italy, and Croatia faced some deficiencies.

The Mercer index comprises three subcategories that rate a pension system: adequacy, sustainability, and integrity. Adequacy of income is a fundamental goal of any pension system, essentially providing a safety net. The ability of governments to create incentives for median-income workers to save for retirement plays a significant role in each system's health.

The design of the payment plan is also crucial, Mercer's ranking suggests, as well as whether workers can continue accumulating benefits when temporarily out of the workforce for reasons like childcare or illness.