Many British savers will be dreaming of the day they can finish work and enter retirement. However, they may be shocked to learn the United Kingdom has been ranked as one the worst countries in Europe when it comes to preparing millennials for retirement, according to research from Our Life Plan.
With the youngest millennials being 25 and the oldest turning 40 this year, millennials are now a key generation in the workplace.
However it appears that for the future generations of pensioners, the UK is a less than attractive place to retire.
Switzerland and Lithuania are the only European countries that rank worse than the UK but not by much. Overall, Switzerland scores 4.56 out of 10, Lithuania scores 5.54, whilst the UK’s overall score is 5.56.
It has been revealed that the United Kingdom is the worst country in the category ‘pension percentage of pre-retirement earnings’ at just 28.4 percent. In contrast, Turkey’s percentage is 93.8 percent, Italy is 91.8 percent and Luxembourg 90.1 percent.
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The UK also does not excel in social security retention percentage. Although not the worst, it is only 19.5 percent.
There are 25 countries that have a higher percentage than the UK, with four of these being more than double: the Czech Republic (44.29 percent), Slovakia (43.13 percent), Slovenia (41.97 percent), and Japan (40.28 percent).
Furthermore, the United Kingdom comes in the top half of the most expensive countries, both in and outside of city centres. In the city centre, the average apartment cost is £4,175.45, while outside of the city centre it is £2,963.33.
In Europe, the three cheapest countries are Turkey, Greece and Latvia, which all come in at less than £1,500 per square metre.
It is also one of the cheapest places to live, with average apartment costs of £2,178.09 and £1,315.6 inside and outside the city centre respectively.
Elsewhere, Switzerland’s pension percentage pre-retirement savings is 15 percent higher than the UK and social security retention is 3.94 percent higher.
However, Switzerland is in the top 3 most expensive places to live, 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 reduced Switzerland’s overall score, bringing it down to 4.65.
Other European countries which do not appear to be preparing people well for retirement include Latvia, Denmark and Luxembourg.
Here are the 10 worst European countries to retire in for millenials: