Australians pride themselves on being financially better off than their New Zealand counterparts over the ditch.

After all, wages here are higher and the economy much more diverse.

So it may surprise you to discover that Australians are less secure in retirement than their trans-Tasman neighbours. That is according to the Natixis Global Retirement Index for 2016.

The index puts Australia at number six on its top 25 countries for retirement security, while New Zealand comes in at number four. Norway tops the list and European countries make up seven of the top 10, with the third non-European nation being Canada at number 10.

One might wonder why Kiwis outrank Aussies in retirement security, given Australia’s superannuation system outguns New Zealand’s by a considerable margin.

Aussies have enjoyed compulsory super since 1992 and our employers now chip in 9.5 per cent of our salaries each year.

KiwiSaver, as New Zealand’s retirement system is known, commenced only in 2007 and mandates employers kick in only 3 per cent.

And workers only get that if they co-contribute at rates of 3, 4 or 8 per cent.

Professor Peter Whiteford, of the Crawford School of Public Policy at the Australian National University in Canberra, said there are some factors at play that boost Kiwi retirements.

“New Zealand has a generous, flat rate, universal pension so older people have a very low poverty rate and high incomes,” he told The New Daily.

Australians may build up super assets, but the pension is means tested and “Australians over 65 have the second-lowest income in the OECD”, Professor Whiteford said.

These figures may overstate the situation for older Australians as many income surveys don’t count pensions from super funds, he said.

But retirement security, it seems, is not all about money. The Natixis index is built up of four different measures including quality of life, and here the Kiwis are streets ahead.

New Zealanders in the survey scored 90 on the index compared to 81 for Australia. That’s because Kiwis score well on personal happiness and a range of environmental factors.

Natixis Australian managing director Kevin Haran told The New Daily that “New Zealanders had a higher quality of life and ranked higher than Australians in general happiness”.

Greenhouse emissions hit Aussie rankings. Photo: AAP

Australia’s high level of greenhouse gas emissions per capita had a big influence on its quality of life score.

“Australia’s climate change score has brought down the overall ranking,” said Mr Haran.

The sub-index measuring finances in retirement puts New Zealand one point ahead, on 78, compared to Australia’s 77.

That sub-index measures old age dependency, or the numbers of working age people compared to retirees, as well as the inflation rate and real interest rates. It also takes in some data on the underlying strength of the financial system.

Kiwi strength in this index is partly a result of the interplay of interest rates and inflation. While Australia scores higher on rates, New Zealand performs much better on inflation.

The Kiwi cash rate now stands at 2.25 per cent and the inflation rate a negligible 0.4 per cent, while Aussie rates are 1.75 per cent and the inflation rate 1 per cent. That means real returns on retirement savings are higher in New Zealand.

On the health index, which measures longevity, levels of insurance cover and overall health spending per capita, Australia comes out one point ahead at 86 compared to 85 for New Zealand.

The material wellbeing takes in per capita income, income inequality levels and unemployment rates Australia also comes out just ahead at 70 compared to 68 points on the index.