Highest and lowest pensions in world: Pension index 2023
Illustrative photo (Photo: Getty Images)
Annually, the Mercer CFA Institute conducts a study of pension systems in different countries to determine the Global Pension Index. In 2023, 47 countries from around the world were included in the ranking.
Where the best and worst pensions are, is explained by RBC-Ukraine based on the Institute's report.
How pension systems were evaluated
To assess the pension systems, experts selected three criteria:
- Adequacy: state support, savings, pension growth, and more.
- Sustainability: demographics, government spending, national debt, economic growth.
- Integrity: regulation, management, protection, communication, operational costs. Ratings were given from A to E, where A is the best, and E is the worst.
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Which countries have the best and worst pensions
The Netherlands, Israel, Denmark, and Iceland are in Class A. The pension systems of these countries are described as first-class and reliable systems that provide comfort and stability.
Average results were demonstrated by Kazakhstan, South Africa, Hong Kong, UAE, Colombia, France, Spain, Croatia, Saudi Arabia, Poland, Japan, Italy, Malaysia, Brazil, Peru, China, Mexico, Botswana, South Africa, Taiwan, Austria, Indonesia, South Korea.
The worst performance was recorded in Nil. The system of this country was described as very poor and unstable.
Pension sizes in European countries
Finally, it can be difficult to thoroughly examine this issue, so we provide approximate amounts that retirees receive in different countries around the world:
Poland - $460
France - $1,200
Japan - $2,000
Germany - $1,500
Spain - $1,050
USA - $1,500
Israel - $1,500
China - $150
Based on the above ranking and pension sizes, it can be concluded that the Netherlands, Denmark, and Iceland provide their retirees with payments equal to or exceeding $1,500.
