what are the best and worst pension systems in the world

According to a global study, the Netherlands and Denmark have the best pension systems in the world, illustrating how different countries are preparing their aging population for retirement.

The countries ranked first in the Melbourne Mercer World Pension Index, released on Monday, and both have earned the A grade for the level of financial security offered at retirement, an article in Bloomberg reports.

Australia was in third place with a B + score, while the other ten positions were Finland, Sweden, Norway, Singapore, New Zealand, Canada and Chile, all with a score of B.

The survey conducted in 37 countries, covering nearly two-thirds of the world's population, uses 40 measures to determine if a system can achieve better financial results for retirees, if it is sustainable and sustainable. that he inspires confidence in the community.

The Netherlands regained first place in 2019. Most workers in the country benefit from defined benefit schemes based on average lifetime earnings. The United Kingdom and the United States obtained the C + mark, respectively 14 and 16. Both could increase the score by raising the minimum pension for low-income retirees, according to the report.

Japan ranked at number 31 and was ranked with a D, a note that reveals "significant weaknesses and / or omissions that need to be corrected". A key recommendation included the postponement of retirement age in the state, as life expectancy continues to increase in the country. Thailand ranks last and should introduce a minimum level of mandatory retirement savings and increase support to the poor, according to the report.

Decision makers are facing an increase in the number of people who retire, live longer and need a constant income to survive. According to UN data, nearly 20% of the world's population will have reached retirement age by 2070, up from around 9% this year.

"Systems around the world are facing unprecedented life expectancy and increasing pressure on public resources to support the health and well-being of older people," said David Knox, author of the report and lead partner from Mercer. "It is imperative that decision makers reflect on the strengths and weaknesses of their systems to ensure stronger long-term results for future retirees."

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