The Netherlands and Denmark have the best pensions systems in the world, according to a global study by Mercer. The survey examined 37 nations using 40 metrics to assess whether a system leads to adequate income replacement for retirees, whether it is sustainable and whether it has the trust and confidence of the community. According to David Knox, the report’s author and senior partner at Mercer “it’s imperative that policy makers reflect on the strengths and weaknesses of their systems to ensure stronger long-term outcomes for the retirees of the future.”
BETTER FINANCE recently released its own report evaluating the real returns of pension funds in different EU countries. Even though it also found that both Denmark and The Netherlands performed better on average than other countries taken up in the report, the real return on savings in Denmark nevertheless remained negative. The Dutch system, did overall provide decent returns after taxes, charges and inflation. Nevertheless, like other pension systems, Dutch pensions have come under strain due to the combination of an ageing population and historically low-interest rates.