KEY FACTS
- The Netherlands has the best pension system in the world, according to the latest annual ranking of the Mercer consulting company and Monash University, Australia, BTA reports.
- The Netherlands tops the ranking, which includes the pension systems of 48 countries, including Germany, France, the United Kingdom, the United States, Japan, China, and India, the New site reports.
- Finland is second in the ranking, followed by Iceland, Israel and Singapore. At the bottom of the ranking are India, Argentina, Turkey, and the Republic of South Africa.
KEY CONTEXT
According to the researchers, the Dutch pension system is distinguished by the fact that many of the country’s residents accumulate a pension through work. This means that the system has many participants. It also provides good pensions and has good rules.
The researchers see as good the fact that the Netherlands is moving to a new system where the amount of the pension depends more and more on individual choice. The fact that the participants are consulted about this choice is a plus, Mercer reports.
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KEY QUOTE
“Strong regulations and flexibility, for example in relation to the start date, ensure a sustainable pension system,” said pensions expert Mark Hemskerk of Mercer.
WHAT TO WATCH FOR
The Netherlands could further improve its pension system by reducing the level of household debt and providing greater protection for members’ accrued benefits. The researchers also recommend introducing pension credits for carers of young children.
