October 20, 2020
The Netherlands and Denmark have cemented their positions as having the best pension systems in the world, even as other countries falter during the Covid-19 pandemic, according to an annual global survey.
The countries again took the top two slots in the Mercer CFA Institute Global Pension Index published Tuesday, drawing praise for holding their nerve and not allowing citizens to drain their accounts during the crisis.
World’s Best (And Worst) Pension Systems Netherlands, Denmark lead with A grade retirement systems
The scores of over half of the countries (20) slipped this year as the world battles to limit the economic fallout from the Covid-19 crisis.
The global recession has led to reduced pension contributions, lower investment returns and higher government debt in most countries. “Inevitably, this will impact future pensions, meaning some people will have to work longer while others will have to settle for a lower standard of living in retirement,” said David Knox, the report’s author and senior partner at Mercer.
Stretched public finances mean public benefits in particular are under pressure, he said. “We’re actually going to have to rely on ourselves with private provision more and more.”
Knox said pension systems such as those in Austria and Italy that hadn’t built up substantial private funds are likely to come under increasing pressure. Both were given a C grade, coming in 28th and 29th respectively.