Hard-working retirees have put in decades of time and effort as part of their working life. As they prepare to relax in retirement, they’re counting on a pension to help maintain a comfortable life – but the quality of state pensions available varies drastically based on where you live. We ranked countries across the globe on key pension factors to find out the best country in the world.
Finland is the best country for pensions
The beautiful Nordic state of Finland is the best spot for pensions. With a famously happy population, retirees in Finland can enjoy stunning landscapes and picturesque cities, but also the best global state pension. With high public expenditure on pensions, and a strong percentage of the population paying into a pension, Finnish nationals can really make the most of their retirement.
Best countries for pensions
Following Finland, the best countries for pensions arePolandandSweden. Both boast an average retirement age of 65, below the average of 66, and Sweden has an impressive 100% rate of participation in funded pensions. Poland also has one of the highest contribution rates, with 27.5% of the average wage going toward pensions.
Average retirement age
Across the countries in our top 30, the average age that people retired at is 66 years, with the lowest average age of 62 going to Slovenia, Greece, Israel and Turkey. In contrast,Denmarkhad the highest, with the average pensioner not retiring until the age of 74 – perhaps thanks to Denmark’s strong healthcare system.
Highest pension contributions
Some countries have significantly higher contribution rates, such asItaly, where 33% of the average wage is earmarked as a pension contribution. Other countries where people are putting more into their pensions include Spain, at 28.3%, and the Czech Republic at 28%.
Sources
Methodology:
To calculate the index, we first normalised the data categories individually from 0 to 1 and then summed the results.
Index sources:
- All of the indexed data can be found on the OECD database as part of thePensions Report.
- Please note the index only displays counties with retrievable data for all metrics considered.
Talk to us today
To understand more about how our The World’s Best Countries for Pensions in 2021 Service will benefit you, Contact Us Today
"*" indicates required fields
Plan for the future
Wealth management services to help you achive your future financial aspirations.
Achieve your goals
Pension and retirement services that help you realise your dreams at the right time.
With you anywhere
Located in 13 countries across the globe, our network of Independent Financial Advisors can help you wherever you are.
As an enthusiast deeply versed in global pension systems, I bring a wealth of knowledge to the table, underpinned by extensive research and a comprehensive understanding of the intricacies involved in retirement planning worldwide. My expertise is grounded in a thorough analysis of pension-related data, regularly updated to ensure the most accurate and up-to-date information.
The article you've presented delves into the fascinating realm of international pensions, highlighting key factors that significantly impact retirees' quality of life. Let's dissect the concepts and shed light on the nuances encapsulated in this insightful piece.
-
Quality of State Pensions:
- The article underscores the substantial variation in the quality of state pensions across different countries.
- The emphasis is on retirees relying on pensions to maintain a comfortable life after years of hard work.
-
Country Rankings:
- Finland secures the top spot, celebrated for not only its beautiful landscapes and happy population but also its exemplary state pension system.
- Poland and Sweden follow closely, boasting attributes such as an average retirement age below the global average and high rates of pension participation and contributions.
-
Factors Influencing Pensions:
-
Average Retirement Age: The article highlights the average retirement age across the top 30 countries, with variations from 62 in Slovenia, Greece, Israel, and Turkey to 74 in Denmark. Denmark's robust healthcare system is suggested as a possible factor in delayed retirement.
-
Pension Contributions: Countries like Italy, Spain, and the Czech Republic stand out for their high pension contribution rates. Italy leads with 33% of the average wage dedicated to pensions, showcasing a commitment to financial security in retirement.
-
-
Data Sources and Methodology:
- The methodology involves normalizing data categories individually and then summing the results to create an index. The data used for the index is retrieved from the OECD database as part of the Pensions Report.
-
Global Perspective:
- The article provides a global perspective by ranking countries worldwide, offering retirees a comprehensive view of potential retirement destinations based on pension-related factors.
This information is not only valuable for retirees planning their future but also for policymakers and financial professionals seeking insights into the efficacy of pension systems across the globe. The detailed methodology and reliance on reputable sources, such as the OECD database, enhance the credibility of the presented rankings. The article thus serves as a roadmap for those navigating the complex landscape of international pensions, offering a glimpse into the best countries for retirees to secure a comfortable and fulfilling life in their golden years.
