Best Pension System In World: Retirement preparation should be given utmost importance while doing personal financial planning. All other goals can be managed through various loans, but there is no loan available for retirement costs. And post retirement, pension plans provide stability and financial security. It is a type of insurance that pays out money for retirement.
To put it another way, you transfer and save a portion of your current income. Pensions are important to provide a dignified and stable financial future to retirees.
It is important to understand whether retirement income systems in different regions of the world can keep up with their growing populations and aspirations for many years to come. According to Global Pension Systems, the best pension system in the world is seen in Iceland.
Iceland’s Pension Plan
Iceland’s pension plan is rated Grade A and is on the top rank with a score of 84.7. The Netherlands ranks second with a score of 84.6 among countries with effective pension plans.
Where does India stand in pension system ranking?
Chartered Financial Analysts of Global Pension Systems ranked India at 41st position and gave grade D. According to research by the Autonomous Research Institute of Public, 85 percent of the country’s employees do not have access to the pension system. The only source of funding for pensioners is social income.
In the United States, 26 percent of veterans and 57 percent of senior citizens do not receive any type of pension. Those living below the poverty line receive annuity payments. The United States ranks 20th in the World Pensions Report 2022. It is estimated that 65 percent of the world’s population does not retire with an adequate pension.
