After two years in second place, the Netherlands pension system is again the best in the world, according to the annual Global Pension Index by Mercer and CFA Institute. The Dutch system scored an overall index value of 85. Iceland, last year’s number one, is in second place with a score of 83.5, and Denmark in third with 81.3.
The Netherlands is on the brink of starting a major pension system reform, moving from a collective pension fund to more individual funds. However, the Index researchers aren’t worried. “The system is well-positioned to provide excellent benefits amid the move from a collective benefit structure to a more individual-defined contribution approach,” Mercer said.
According to CFA Institute CEO Margaret Franklin, pension systems worldwide are under significant pressure. “The average age of populations around the world continues to rise in many markets,” she said. “Inflation and rising interest rates have created a new market dynamic that poses significant challenges to pension plans. We also see continued fracturing as it relates to globalization.”
“More and more often, individuals will have an increasingly important role to play as it relates to their own retirement,” Franklin said. “There is a long way to go in many jurisdictions to make pension plans function at their best.”
The Index analyzed 47 pension systems, covering 64 percent of the world population, according to Mercer and CFA Institute. Argentina has the worst-performing pension system in the ranking.
If you have questions, please contact us: www.xpats-service.com
تعليقات