If you want to benchmark your British state pension against those offered by other countries, then you are in for a surprise.
Britain scores a miserable C+ against the rest of the world and languishes at 14thplace in the world rankings.
Although Britain is often considered as having a world-class benefits system, the state pension is scored as no better than that of Colombia and Peru, lagging the likes of Chile, new Zealand and Ireland, which all scored a B.
At the top are the only two first-class gold-plated state pensions provided in The Netherlands and Denmark.
The rankings come from expat benefits monitor Mercer, which publishes an annual global pension index. The 2018 edition covers 34 countries.
The A class pensions were described as “first class and robust retirement income systems that deliver good benefits, are sustainable and have a high level of integrity.”
Mercer said the group including Britain offered “A system that has some good features, but also has major risks and/or shortcomings that should be addressed. Without these improvements, its efficacy and/or long-term sustainability can be questioned.”
The company says to improve state pensions, governments should increase the retirement age in line with longevity, increase savings and stop retirement savers from accessing their cash too early.
“The UK scored well on the integrity of its pension system, with a sound approach to regulation and governance, but must take action now to increase provision for low earners and the self-employed,” said Brian Henderson, the director of consulting at Mercer.
“Measures are under way to improve the UK’s global standing, but this alone will not be sufficient.”
Mercer Global Pension Index 2018