26.08.2021

Revealed: These countries have the best pension systems and the UK is lagging behind in 25th place!

Retirees have put in decades of time and effort as part of their working life to prepare for retirement, counting on their pension to help maintain a comfortable future. However, the quality of state pensions varies drastically based on where you live - But which countries around the world have the best systems?

Blacktower Financial Management reveals 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.

Finland ranked the best country for pensions

According to the research, the beautiful Nordic state of Finland has the best pension system in the world. 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.

Next up in the rankings is Poland taking second place, thanks to high public spending on pensions and one of the lowest average retirement ages. Not far behind, in third place, is Sweden where a high percentage of the population actively participates in funded pension schemes.

The top 15 countries for the best pension systems globally can be found below:

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 UK lags behind in 25th place for pensions

As a G7 member, you would expect UK retirees to enjoy a bountiful pension. Unfortunately, positioned at a very humble 25^th place, the UK’s pension system flatlines with the global average. This study couldn’t have come at a more heated time as the 2011’s triple-lock on UK pensions against inflation has been placed under the spotlight.

Gavin Pluck, Group Managing Director at Blacktower Financial Management comments on the UK's position for pension systems "Moving forward, the UK government needs to reassure pensioners that they will protect them from future economic turbulence, and the government needs to put in place a system that educates young adults around the importance of pension planning. Until then, workers around the British Isles find themselves working for much longer, only to retire into a pension system where they have less spending power and less freedom – not only is this a blow to a person’s quality of life, but it is a massive blow for the UK economy”

Gavin Pluck comments further on the study “Our research reveals the world’s best countries for pension systems, this research is something to seriously considered 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.

The full study can be found here: https://www.blacktowerfm.com/best-countries-for-pensions-in-the-world/

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