The 3 countries that offer the best retirement plans in the world

The Mercer CFA Institute Global Pension Index is a report that identifies the world’s best pension systems, both public and private. For each country, it considers factors related to the adequacy of revenues, the long-term sustainability of benefits, as well as the integrity and cost management of each program.

It should be noted that the United States came in at number 20, with an overall rating of C+.

A rating of C+ means that it is a system that has some good features, but also significant risks and shortcomings that need to be fixed.

On the other hand, an A-rated retirement income system is a robust, first-class system that offers good benefits, is sustainable, and has a high level of integrity.

Below, we share with you the only three countries that have a withdrawal system with this rating.

1. Iceland

Pension Index Rating: A

Iceland’s retirement system approaches retirement from several angles: it includes a proven state pension and a supplementary pension; work-based pensions in which both employers and employees must participate; and voluntary personal savings for retirement.

The normal retirement age in Iceland is 67, and employers must pay at least double what employees pay in pensions.

2. Netherlands

Pension Index Rating: A

The Dutch retirement plan includes a flat-rate public pension and an almost compulsory occupational pension.

Unlike Social Security in the United States, the Dutch public pension cannot be delayed beyond full retirement age. But retirees are allowed to continue working while collecting benefits, and some of the work pensions allow a person to withdraw a pension and continue working with the same employer.

3. Denmark

Pension Index Rating: A

Denmark is the latest country to achieve the highest rating, thanks to its offer of a public pension, supplemental means-tested benefits and defined contribution work plans. About 85% of the workforce is covered by the latter type of plan, and self-employed workers have the option of creating their own.