Where's the best country to retire?

For the fourth year in a row, Denmark has been rated as the best place in the world to retire, with the UK trailing in ninth place.

According to an influential report, Mercer's Global Pension Index, the government's much-touted pension reforms earlier this year have actually made the UK a worse place to retire in than before.

As a result, its rating has dropped from 67.6 last year to 65.

Denmark, by contrast, has a rating of 81.7, thanks to a public basic pension scheme, a means-tested supplementary pension benefit, a fully funded defined contribution scheme and mandatory occupational pensions.

Second comes the Netherlands, with a score of 80.5. Here, the system's based on a flat-rate public pension and a pretty-much-mandatory, earnings-related occupational pension based on lifetime average earnings.

Australia comes third, with a rating of 79.6, thanks to a means-tested state pension, a compulsory employer contribution paid into private sector pensions and additional voluntary contributions from employers or the workers themselves.

"The leadership shown by Australia years ago in reforming its pension system has built a strong position for the future," says Amy Auster, executive director of the Australian Centre for Financial Studies.

At the bottom of the scale comes India, with a score of just 40.3 - even lower than last year.

Its poor rating is down to a lack of a minimum level of support for the poorest pensioners and the fact that pensions can be accessed at any age, as well as a badly-regulated private pension system.

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According to the report, the UK could improve its rating by reinstating the requirement to receive part of the pension as an income stream, raising the minimum pension for low-income pensioners and encouraging older people to stay in work.

"Extending the years that individuals spend in the workforce is one of the most positive ways of developing sustainable retirement systems when life expectancies are increasing," says author of the report and senior partner at Mercer, Dr David Knox.

"While there is a natural limit to the participation rate at older ages, with most countries still below 70% the scope for significant increases across the world remains, which would improve the sustainability of many pension systems."

Global rankings:

1. Denmark (81.7)
2. Netherlands (80.5)
3. Australia (79.6)
4. Sweden (74.2)
5. Switzerland (74.2)
6. Finland (73)
7. Canada (70)
8. Chile (69.1)
9. United Kingdom (65)
10. Singapore (64.7)
11. Ireland (63.1)
12. Germany (62)
13. France (57.4)
14. United States of America (56.3)
15. Poland (56.2)
16. South Africa (53.4)
17. Brazil (53.2)
18. Austria (52.2)
19. Mexico (52.1)
20. Italy (50.9)
21. Indonesia (48.2)
22. China (48)
23. Japan (44.1)
24. South Korea (43.8)
25. India (40.3)