These are the world's best (and worst) pension systems

Matthew Burgess

 

Australia came in third, with a B+ grade. Bloomberg

 

The Netherlands and Denmark have the best pensions systems in the world, according to a global study that shines a light on how nations are preparing ageing populations for retirement.

 

The countries took the top two slots in the Melbourne Mercer Global Pensions Index published on Monday, both earning an A grade for the level of financial security provided in retirement. Australia came in third, with a B+ grade, and the top 10 was rounded out with Finland, Sweden, Norway, Singapore, New Zealand, Canada and Chile all on B.

 

The survey of 37 nations, which covers almost two-thirds of the world's population, uses 40 metrics to assess whether a system leads to improved financial outcomes for retirees, whether it is sustainable and whether it has the trust and confidence of the community.

 

The Netherlands again took the top spot in 2019 with most workers benefiting from defined benefit plans based on lifetime average earnings. The UK and the US both earned a C+ grade, coming in 14th and 16th place respectively. Both could boost their scores by raising the minimum pension for low-income pensioners, according to the report.

 

Japan came in at No. 31 and was ranked with a D - a grade that reveals "major weaknesses and/or omissions that need to be addressed". A key recommendation included raising the state pension age as life expectancy continues to increase in the nation.

 

Thailand was in the bottom slot and should introduce a minimum level of mandatory retirement savings and increase support for the poorest, the report said.

 

Full story: https://www.afr.com/wealth/superannuation/these-are-the-world-s-best-and-worst-pension-systems-20191021-p532ks

 

-- FINANCIAL REVIEW 2019-10-24

 

The max UK state pension is about 7500k which is not enough to live off.

Yeah the British pension is appalling ! My dad would get literally peanuts to survive on. Where I live I could retire in Thailand comfortably on what the social security have estimated what I will get . 

Interesting, as both Holland and Sweden have been in the news the past few weeks about increasing the age limits and reducing benefits in the future. Does the "pension systems" include private funding as the UK PP schemes are still the best investment to make with tax breaks...Every pound invested gets you 28pence or 56 pence as a higher rate tax payer from the government....with TFC and drawdown plus not tied to purchasing an annuity makes it a no brainer.

34 minutes ago, sunnyboy2018 said:

The max UK state pension is about 7500k which is not enough to live off.

Sorry not British. But is that pound and per year?

I just applied for Social Security in the US, as I turned 66.  I could have taken a lesser amount at 62 but didn't.  I'm supposed to get about $2,300 USD per month before tax, which is chump change these days. Glad I have a pretty big piggy bank that I've been stuffing all these years.  Never did have a job that had a retirement plan. 

I get the princely sum of 90 quid a week,good job

I don't have to live off it,just leave it in the UK,for

buying stuff I need there.

 

I expect Expats from other countries don't have

a freeze on their pensions while living abroad ?

regards worgeordie

 

29 minutes ago, sirineou said:

Sorry not British. But is that pound and per year?

Yep £7,500 pounds . It’s pathetic . 

13 minutes ago, Damrongsak said:

I just applied for Social Security in the US, as I turned 66.  I could have taken a lesser amount at 62 but didn't.  I'm supposed to get about $2,300 USD per month before tax, which is chump change these days. Glad I have a pretty big piggy bank that I've been stuffing all these years.  Never did have a job that had a retirement plan. 

I’m not sure if 75k baht is chump change . Don’t you also get Medicade that pays for your medical even when living abroad ? 

58 minutes ago, chrisandsu said:

Yeah the British pension is appalling ! My dad would get literally peanuts to survive on. Where I live I could retire in Thailand comfortably on what the social security have estimated what I will get . 

 

The Netherlands is on number 1. But you only get € 1.158 a month. That doesn't sound like "comfortably retire"...  You really need to save/invest yourself more to have enough to live on.  Or own a house so you do not have to pay rent. 

 

 

Edited October 23, 20196 yr by dimitriv

2 minutes ago, dimitriv said:

 

The Netherlands is on number 1. But you only get € 1.158 a month. That doesn't sound like "comfortably retire"...  You really need to save/invest yourself more to have enough to live on.  Or own a house so you do not have to pay rent. 

 

 

Even when owning a house you will always have to pay property tax (or council tax in the uk) the uk pension is close to half of the Dutch pension and I think you have to be 70 to get it now ! No wonder they want to leave the Eu . The worst pension in the union by quite some distance . 

3 minutes ago, dimitriv said:

The Netherlands is on number 1. But you only get € 1.158 a month.

That's the basic AOW if you did not worked your whole life, most people worked and get their pension on top of it and  that makes the difference.

1 minute ago, chrisandsu said:

Yep £7,500 pounds . It’s pathetic . 

And that's the top? That's about $800 usd a month. That's crazy!!

I think that's the minimum you can get in the US. Now I know why you guys cry about the exchange rate. I am thinking of putting in my papers for reduced early retirement (Social Security)  at 62, and it will be 1,400 usd per month, and i could not live on that.   

1 hour ago, webfact said:

Thailand was in the bottom slot

Well that's dashed my dreams of the wife supporting me in retirement! ????

13 minutes ago, dimitriv said:

 

The Netherlands is on number 1. But you only get € 1.158 a month. That doesn't sound like "comfortably retire"...  You really need to save/invest yourself more to have enough to live on.  Or own a house so you do not have to pay rent. 

 

 

The OP doesn't restrict the ratings to public pensions. Some countries have discouraged private defined benefit pension plans do to lobbying from investment firms and banksters. In Canada my public pensions don't amount to much but my employer DB plan helps make life easy. I wish I could have contributed longer but there is a 35 year cap.

Most posters on this thread seem determined to ignore that a good pension system is a sustainable system: what goes out must have come in at some stage, and do so for the foreseeable future by taking demographics into account.

1 hour ago, chrisandsu said:

Even when owning a house you will always have to pay property tax (or council tax in the uk) the uk pension is close to half of the Dutch pension and I think you have to be 70 to get it now ! No wonder they want to leave the Eu . The worst pension in the union by quite some distance . 

 

But will leaving the EU help? The Netherlands is also in the EU and the pensions are much higher.  

1 hour ago, RotMahKid said:

That's the basic AOW if you did not worked your whole life, most people worked and get their pension on top of it and  that makes the difference.

 

The article is about state pensions...

 

 

At 65yrs,i got $1748 each 28 days from no govt.

With freehold condo, I can live quite comfortably on that in Pattaya. 

Fortunately I have substantial passive income from property investments in NZ. This pays for holidays or anything else. 

At 68 ,I expect to live another 25yrs.

The income will be ongoing, not reducing, like those who try to live off savings. 

The next 10yrs are important, so I increase my spending each year. Young Thai girlfriends share it.

They help to keep me young. 

The comparison and numbers don’t take into account other ‘social wage’ factors; health care, social and welfare services, housing assistance etc.

 

Old folk I know in the UK and Netherlands all say they have never been so financially comfortable in their lives.

Edited October 24, 20196 yr by Chomper Higgot

1 hour ago, chrisandsu said:

I’m not sure if 75k baht is chump change . Don’t you also get Medicade that pays for your medical even when living abroad ? 

I do have Medicare  at low cost but I don't think it pays abroad.  Medicaid is free for the really poor.  Like my brother who seems to have developed a possibly fatal motor neuron disease.  Fun stuff.

3 hours ago, webfact said:

Thailand was in the bottom slot and should introduce a minimum level of mandatory retirement savings and increase support for the poorest, the report said.

3 hours ago, webfact said:

Thailand was in the bottom slot and should introduce a minimum level of mandatory retirement savings and increase support for the poorest, the report said.

This should make you understand how to help the most needy part of your population!

2 hours ago, Damrongsak said:

I just applied for Social Security in the US, as I turned 66.  I could have taken a lesser amount at 62 but didn't.  I'm supposed to get about $2,300 USD per month before tax, which is chump change these days. Glad I have a pretty big piggy bank that I've been stuffing all these years.  Never did have a job that had a retirement plan. 

Do not think $2300 a month is chump change.  Studies show that american private sector employees paid in over $3000 a month on average during our working years, so you would think that is what we would get in retirement.  Yet those of us who worked in the private sector are also funding pensions/social security for all "Government" workers.  The money they make and pay in is all from taxpayers, and then they retire AND receive pensions all funded by private sector tax payers.  Then you have all the Veterans receiving pensions AND social security that they paid into with "other peoples money"    Below is an interesting article related to this

$5.2 Trillion Of Government Pension Debt...2019

https://www.forbes.com/sites/chuckdevore/2019/05/31/5-2-trillion-of-government-pension-debt-threatens-to-overwhelm-state-budgets-taxpayers/#1bcd540e759d

29 minutes ago, dimitriv said:

 

The article is about state pensions...

 

 

State pensions and private pensions are in many countries intertwined. You have to look at the system as a whole.

I am surprised Denmark is up in the top.

 

The pension age there is going up & up and if you have any private pension fund you can you only get a base pension from the government, which is not much. Further if you live outside EU, also only base pension. 

2 hours ago, chrisandsu said:

Even when owning a house you will always have to pay property tax (or council tax in the uk) the uk pension is close to half of the Dutch pension and I think you have to be 70 to get it now ! No wonder they want to leave the Eu . The worst pension in the union by quite some distance . 

i think its still 65 at the moment, i am 64 and will ( thanks to david cameron) have to wait until i am 66, but is rising to 67 for others, state pension will be about £8K something per year, but will be reduced to £7k something, as i was contracted out ( paid a reduced national insurance contribution, as i was paying into a private pension) for a few years

The best pension scheme in the world is for Aussie politicians when they quit serving.

40 minutes ago, steve187 said:

i think its still 65 at the moment, i am 64 and will ( thanks to david cameron) have to wait until i am 66, but is rising to 67 for others, state pension will be about £8K something per year, but will be reduced to £7k something, as i was contracted out ( paid a reduced national insurance contribution, as i was paying into a private pension) for a few years

I have often wondered how women are not asking for equality when it comes to pension age ? They pay less in and get to retire earlier . Also live longer ! Surely it should be the other way around ?

1 hour ago, Chomper Higgot said:

The comparison and numbers don’t take into account other ‘social wage’ factors; health care, social and welfare services, housing assistance etc.

 

Old folk I know in the UK and Netherlands all say they have never been so financially comfortable in their lives.

£162 @ week?you having a giraffe?pity the uk spends so much on eu contributions and tax credits so overseas firms such as uber can set up shop here,not pay a brass razoo  in tax ( in ubers case preferring to pay it in holland) then state their workers are self employed (despite uk court rulings to the contrary) so the British taxpayer ends up subsidising them in tax credits to their employees (payable by British taxpayers) to the detriment of our oaps.

Edited October 24, 20196 yr by kingdong

3 hours ago, chrisandsu said:

Even when owning a house you will always have to pay property tax (or council tax in the uk) the uk pension is close to half of the Dutch pension and I think you have to be 70 to get it now ! No wonder they want to leave the Eu . The worst pension in the union by quite some distance . 

So the British voted to leave the EU to receive better State Pensions and pay less Council Tax? What a ridiculous idea.

How does the Dutch being in the EU and getting a much better pension square with that?