Chile And Colmbia Pensioners Better Off Than Those In UK

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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.

Action needed

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

RankCountryCategory
1NetherlandsA
2DenmarkA
3FinlandB
4AustraliaB
5SwedenB
6NorwayB
7SingaporeB
8ChileB
9New ZealandB
10CanadaB
11SwitzerlandB
12IrelandB
13GermanyB
14ColombiaC+
15UKC+
16PeruC+
17FranceC+
18Saudi ArabiaC+
19USAC+
20MalaysiaC
21BrazilC
22Hong KongC
23SpainC
24PolandC
25AustriaC
26IndonesiaC
27ItalyC
28South AfricaC
29JapanD
30KoreaD
31ChinaD
32MexicoD
33IndiaD
34ArgentinaD

Source: Mercer

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1 COMMENT

  1. The headline and tenor of this article is wrong. Lets take the case of Chile. Retirees are far from better off than their Uk counterparts. The Mercer report looks at the pensions from a systems/institutional point of view, not from the money a penioner recieves. Chile’s pension adecuacy [report’s terminology] is similar to the UK, ie pensioners will get close to the 60% of industrial average wage. BUT 60% of Chile´s industrial average is FAR below 60% of GB industrial average, in terms of money in the pocket of pensioners. Average pension in Chile is GBP350 (See OECD for full figures).

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