May 28, 2023

New Delhi: Preparing for retirement should be given great attention when conducting personal financial planning. All other goals can be achieved with various loans, but loans for retirement expenses are not available. And after retirement, retirement plans offer stability and financial security. This is a type of insurance that pays out money until retirement.

In other words, you transfer and keep a portion of your current income. Pensions are critical to providing pensioners with a decent and stable financial future. (Also read: Unlike global economy, India won’t slow down: RBI article)

Understanding whether retirement income systems in various regions of the world can support their growing populations and aspirations for many years to come is vital. The best pension system in the world, according to the Global Pension System, is in Iceland. (Also read: Leading up to Fifth Marriage, Rupert Murdoch’s Past Relationship Looks in Pictures)

Iceland’s pension plan is rated A and ranked first with a score of 84.7 points. The Netherlands ranks second among countries with efficient pension plans with a score of 84.6.

Where does India rank in the pension system?

India was ranked 41st and scored a D by the Chartered Financial Analyst of the Global Pension System in scaling its pension system. According to a study by the Autonomous Society Research Institute, which is part of the Union Ministry of Finance, 85 percent of the country’s workers do not have access to the pension system.

The only source of funding for pensioners is social income. However, 26 percent of older people and 57 percent of older people in the United States receive no pension. Those who live below the poverty line receive annuity payments. (Also read: Unlike global economy, India won’t slow down: RBI article)

While the above truth is true for India, have you ever thought about other countries? Are you familiar with their pension system and the best nation for retirees?

The United States is ranked 20th in the 2022 World Pensions Report. It is estimated that 65 per cent of the world’s population will not be able to retire with adequate pensions.

The general old-age pension law, supplementary employer-sponsored accounts and supplementary individual pension plans are the three main pillars that support the Dutch pension system. A pensioner immediately becomes entitled to a pension as soon as he turns 66 years old.

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