How Retirement Systems Are Compared
Retirement systems are evaluated by coverage, benefit adequacy, and financial sustainability. Experts use indexes like the Mercer CFA Institute Global Pension Index to rank countries based on these factors.
Top-Ranked Countries for Retirement
Denmark, the Netherlands, and Australia often rank at the top of global pension comparisons. Denmark combines a state pension with mandatory occupational plans. The Netherlands relies on a multi-tiered system with strong employer pensions. Australia offers a compulsory employer contribution scheme alongside a means-tested age pension.
Key Factors to Consider
Important factors include the replacement rate, which measures income after retirement as a percentage of pre-retirement earnings. Eligibility age, healthcare access, and inflation protection also matter. For a detailed breakdown of index methodology and country scores, see the Mercer CFA Institute Global Pension Index at https://www.mercer.com/insights/human-resources/retirement-benefits/global-pension-index.
