Dutch pension system again ranked best in the world
The Netherlands has the best pension system in the world, according to the annual ranking by Mercer and Monash University. The Netherlands also topped the ranking, which includes the pension systems of 48 countries, last year, NU.nl reports.
According to the researchers, the Dutch pension system excels because many Netherlands residents are required to build up a pension through work. That means the system has many participants. The system also provides good pension amounts and there are good regulations.
The researchers called it good that the Netherlands is transitioning to a new system where the pension amount depends more on individual choices. The fact that participants are advised on those choices is a plus.
“Strong regulations and flexibility, for example, with regard to the start date ensure a sustainable pension system,” said pension expert Marc Heemskerk of Mercer.
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 recommended introducing a carer’s pension credit for those caring for young children.
Finland is second in the ranking, followed by Iceland, Israel, and Singapore. At the bottom of the list are India, Argentina, Turkey, and South Africa.
