Sunday, October 1, 2023

The secrets of the world’s best pension system

The retirement age is one of the biggest concerns for the entire European population. This year, France put the issue back at the forefront of political and social debate when the government announced its idea of ​​extending working life to 64 years. The French took to the streets and protested in the country’s main cities.

Retirement is possibly one of the thorniest and most thorny issues political leaders have to contend with. The map of Europe shows all possible situations. The southern countries are the cheapest places to retire, with good weather and a decent quality of life almost all year. In contrast, the countries in the center of the continent have lower retirement ages, while the Nordic countries often offer the best conditions. The scenario is extremely complex, and the workers don’t stop asking questions. Which is the country with the best pension system?

Every year, thousands of workers from all over the world try their luck in a country with better services and more hours of sunshine. However, the benefit to which they are entitled remains that of their place of origin. Pension systems vary by country and by the socio-economic situation of each territory. In Spain, for example, pension benefits are based on five fundamental principles: distribution, universality, proportionality, adequacy, and public administration. Benefits are protected by law, and there is a common fund to meet the needs of all beneficiaries.

A Retired Couple On A Trip To Iceland.  (Getty)

Specializing in global strategy and talent, Mercer produces an annual report detailing the state of retirement savings in key parts of the world. The company takes into account factors such as financial security, population aging, or the socio-economic history of each area that makes up the sample. Spain is 26th in a ranking that includes 44 countries, with an increase of almost three points compared to the result of the previous year.

This might interest you: The 10 countries with the best pension systems: more money and guaranteed sustainability

The gold medal goes to Iceland. The Arctic country’s pension system consists of a basic state pension and a supplementary pension, both of which depend on various factors such as income level. In addition, there are private pension funds that are mandatory for both companies and employees. Personal funds are also an option, but these are voluntary for the Icelandic people. The combination of these three points places the country’s pension system at the top of Europe. The authors of the report set the reduction of household debt and the protection of the interests of both parties in the event of divorce as goals for improving the country’s final grade. The top 5 best pension systems in the world are completed by the Netherlands, Denmark, Israel, and Finland.

World Nation News Desk
World Nation News Desk
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