A new report by Blacktower Financial Management Group reveals the world's best state pension systems in 2021 based on various factors including average retirement age and contributions.
Finland ranked top country for pensions, followed by Poland and Sweden, while the UK falls short of the mark, ranking 25th on the index, and Korea comes in last out of all the countries indexed.
Gavin Pluck, group managing director at Blacktower Financial Management, said: "Our research reveals the world's best countries for pension systems - this research is something to seriously consider when deciding which country to go live and work overseas. Inevitably, this will impact your future pension, meaning you may have to work for longer to fund your comfortable retirement depending on which country you live in"
Blacktower Financial Management analysed the best pension systems around the globe in 2021 using key metrics, such as public spending, average retirement ages, average pension contributions and the percentage of the population who have participated in pension schemes.
According to the research, Finland's high public expenditure on pensions, and a strong percentage of the population paying into a pension, has enabled Finnish nationals to make the most of their retirement.
Poland's second placing placing was thanks to high public spending on pensions and one of the lowest average retirement ages.
Not far behind, in third place, Sweden saw a high percentage of the population actively participates in funded pension schemes.
The top 15 countries for the best pension systems globally are here:
|
Ranking |
Country |
Public expenditure on pensions (% of GDP) |
Normal retirement age by type of pension scheme |
Pension contributions as a % of average wage |
Participation in funded pensions as a % of working population |
|
1 |
Finland |
13.4 |
67.9 |
24.4 |
89.8 |
|
2 |
Poland |
11.2 |
65 |
27.52 |
66.2 |
|
3 |
Sweden |
8.2 |
65 |
21.71 |
100 |
|
4 |
Slovenia |
10.9 |
62 |
24.35 |
39.1 |
|
5 |
France |
15 |
65 |
27.5 |
24.5 |
|
6 |
Latvia |
7.4 |
65 |
20 |
100 |
|
7 |
Greece |
17.3 |
62 |
20 |
1.3 |
|
8 |
Czech Republic |
8.2 |
65 |
28 |
52.1 |
|
9 |
Switzerland |
9.8 |
65 |
16.6 |
73.6 |
|
10 |
Israel |
5.3 |
62 |
13.81 |
80.7 |
|
11 |
Italy |
15.6 |
71.3 |
33 |
19.6 |
|
12 |
Austria |
13.8 |
65 |
22.8 |
13.9 |
|
13 |
Spain |
12.2 |
65 |
28.3 |
3.3 |
|
14 |
Norway |
10.7 |
67 |
20.1 |
59.4 |
|
15 |
Japan |
10.2 |
65 |
18.3 |
49.4 |
The full study can be found here.
