Know The Country With The Best Pension System In The World

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The report placed India in the 41st spot.

The report placed India in the 41st spot.

The European Commission website states that a person must have lived in Iceland for at least 40 years or more to be eligible for pension.

Pension programmes provide financial security and stability after retirement. It is an insurance policy that provides retirement income. In other words, you transfer and save a portion of your present income for the future. Pension is important to give retirees a respectable and financially stable life after retirement. Chartered Financial Analyst presented by the Global Pension System placed India at 41 ranks and Grade-D while scaling its pension system.

A report by the Autonomous Research Institute of Public under the Union Ministry of Finance reveals that 85 percent of the country’s employees do not have access to a pension system. Only through social income do retirees receive funds. However, 57 percent of senior residents do not receive any kind of pension and 26% of elderly Below the Poverty Line people are receiving annuity benefits. While the above fact is true for India, have you ever thought about other countries? Do you know about their pension system and which country is considered the best for retirees’ funds?

The Global Pension Report 2022 has placed America in the 20th spot. As per the report, 65% of the global population is not entitled to decent pensions after they retire. Especially in times of rising interest rates, inflation, and potential uncertainties, it is important to have a stable retirement plan, said Dr David Knox, Senior Partner at Mercer and study author.

For future risk, post-retirement uncertainties, security of life in old age, financial freedom, and continuous income generation, Dr Knox advises people to think about balanced investments and a better pension system. It’s crucial to comprehend whether retirement income systems in different parts of the world will be able to support their rising populations and expectations for many years to come. According to the Global Pension System, Iceland has the best pension system in the world. With a score of 84.7, Iceland’s pension scheme holds the top spot and is graded as Grade A.

With a score of 84.6, the Netherlands is ranked second among nations with good pension schemes. The Dutch retirement system is supported by three major pillars: General Old Age Pension Act, Additional Employer-Sponsored Accounts, and Additional Individual Pension Policies. Once a retiree turns 66 years, they are immediately eligible for a pension.

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