Posts Tagged “Old Age”

Only 6 Countries Have Sound Pension Systems, Luckily Canada IS On The List

012th Dec 2011Canadians, Freedom, Retirement, Savings, , , , , , , ,

Only 6 Countries Have Sound Pension Systems, And America Isn’t On The List

Andrew Shen and Gus Lubin

Only six national pension systems earned a ‘B’ grade on Mercer’s 2011 global index, which was given to systems with “sound structure” and “room for improvement.”

The best systems are in the Netherlands, Switzerland, Sweden, Australia, Canada and the UK.

Every other pension system was rated as unsound, jeopardizing the future of the elderly population. The U.S. earned a C grade, signifying “some major risks and/or shortcomings.”

Canada — rated “B”

Adequacy: 74.1/100

Sustainability: 55.8/100

Integrity: 79.7/100

“B” refers to: A system that has a sound structure, with many good features, but has some areas for improvement that differentiate it from an A-grade system. Adequacy is an index based on funding. Sustainability is based on demographic trends. Integrity refers to private-sector plans.

 

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