The Dutch pension system is the best in the world, according to the annual Global Pension Index of consultancy Mercer. Last year Denmark took off with this title, but the Netherlands has been number one again for seven years. 

Denmark is in second place, Finland is in the top three for the first time with third place.

The Global Pension Index compares the pension systems of more than thirty countries. They are tested for adequacy, future-proofness and integrity. This year the Netherlands scored 80.3 points, last year it was 78.8. The Netherlands passes Denmark with 0.1 point difference. As a result, both countries receive the A status.

The study looks at pension systems from all angles, including pensions financed by the government and saved by the individual. They also look at economic growth, government debts, but also participants' own savings and home ownership.

Source: NU.nl

18 responses to “Global Pension Index: 'The Netherlands once again has the best pension system in the world'”

  1. Mark says up

    All well and good, such a study by a consultancy firm. Still, I am willing to trade with the pension of my Norwegian neighbor across the street. The man is less educated and his pay bag was a lot less filled than mine, but I am willing to trade my pension with his … even though my pension system is the best in the world according to that consultancy 🙂

    • Ger Korat says up

      If a pension accrual takes place, it is also assumed that the pension is enjoyed in that country. Norway is known as the most expensive country in the world. It is a country where people do not pay income tax, and the government still collects that missed money by levying high excise duties and high VAT. Norway's high VAT rate is 25% and excise duties are absurdly high. Think of your beer, your fuel or cigarettes and more.
      The Norwegian government charges a special tax rate for pensioners abroad, so what the Norwegian neighbor really ends up with after he has received the annual tax bill for his pension abroad will be a lot lower than what he first tells you.

      • theos says up

        Ger Korat. I don't know where you get these claims from, but a Norwegian does pay income tax and not just a little bit. I sailed on Norwegian ships for 20 years and as a foreigner I paid 15% income tax and had no pension rights, so no pension. The Norwegians did rise to 50% and more tax. These high pensions are paid for most of the oil income.

    • Sir Charles says up

      My Thai neighbor, on the other hand, is more highly educated but has always had a meager salary package than mine and is willing to exchange his pension with mine…because according to that consultancy my pension system is the best in the world. 😉

  2. RON says up

    Mary…..

    The Netherlands may have the best pension according to statistics...

    But I have been retired since 2014 and still receive the same amount as in 2014.
    So NOT the best pension in the World at all.

    Indexed; 0,0000000

  3. Marco says up

    I don't get a pension yet, I've been paying for 24 years when I reach my "retirement age" in 20 years, let's do another research.
    Look where we are then! M curious.

  4. kees says up

    even though my pension system is the best in the world according to that consultancy
    Haven't gotten a penny indexation for the last 7 or 8 years. And our system is even better at that.

  5. Ed & Noy says up

    consultancy firms are well paid for their research, which is why I never trust their research, I am glad that I can spend my pension generously in Thailand, in the Netherlands I should have made do with an old blanket, a cardboard box , a young dog and a bowl with my own change in it!

  6. Christina says up

    I know a thing or two about pensions, but my husband's pension was placed with a private insurance company, worked all his life, now a pension of 240,00 euros.
    Nothing can be done about it. Have family in Canada and America and they have a very good pension, the difference is where did he / she work and how much do you put in I sign for that pension.

  7. ruud says up

    A pension system in which the low-paid hard-working worker, because of his shorter lifespan, subsidizes the pension of the well-earning, longer-living workers, can never be a good system.

    • erik says up

      And when that low-paid hard-working worker turns 100, all well-earning other workers and employees contribute to his pension. Call it solidarity, but it goes both ways!

    • Ger Korat says up

      Low-paid people accrue little or no supplementary pension and mainly receive the AOW as a pension benefit. The rest are often better educated, so the average life expectancy of most pension fund participants will not differ much. So your reasoning doesn't hold.

      • erik says up

        Foreign. Ruud considers low-paid people to die earlier, you think they live the same age. What is it now?

        Fortunately, the system of solidarity is reflected in the collective schemes; if you have the pension in your own policy, the mortality risk is added to or debited from the insurer's profit. And that is regardless of the level of the pensions.

        Incidentally, this ignores the statement that NL has the best pension system in the world. I don't know what they mean: the premium level, the tax advantages, the control of the government, employees and employers, or the investment regime?

        • ruud says up

          According to a report in De Volkskrant of 2017 about pensions, low-educated people (and therefore usually less paid) die on average 5 years earlier than highly educated people.

  8. Tony says up

    Pension funds are the big scammers together with the banks we are screwed from ear to ear.
    They have not done indexing for years and are becoming less and less so Global Index…..
    Yes, now we can lie on our backs because the pension benefits will not be higher now either, because the funds think that it is all right ……
    When will we wake up with those bunch of crooks and white board criminals….
    TonyM

  9. Archie says up

    Ger Korat says that no income tax is paid in Norway ????? I live in Norway and of course paid income tax like everyone here, would have liked him to be right.

    I don't know where Norway is on this list, but e.g. government debt, most will know that this country has built up the largest oil fund in the world with a value (2018) of 8000.000.000.000 Norwegian kroner (8.000 billion) or 800 billion euros) , so would assume Norway should be high on this list.

    When I compare my pension with my friends living in Holland, I am happy to live in Norway 🙂

  10. Jacques says up

    As long as the influence on pension funds is governed by big money and therefore external parties, we will never receive a pension that does justice to many. The governments that through their tax instruments can exert a decisive influence on the net disposable amount of me and others is a striking example of this. The ABP is an organization without a backbone that does not sufficiently stand up for its participants. I am still waiting, after several promises, for a reply to my letter of complaint. Apparently they don't know how to deal with this. Promises made all year but kept. Always put the blame on others. I have an imposed contract with ABP and not with our government. Nothing is what it seems and a bitter taste remains. Much invested money has been used differently and is still leaking in all directions. I can go on like this for a while. Comparing apples with oranges, such as how things are in Thailand, or where things are even worse, makes no sense, but it does indicate that few people care about humanity and that those involved are more concerned with their own wallets.

  11. Francois Nang Lae says up

    Fortunately, the quality of a pension system is not measured by the number of people who think it is not enough, but by the chance that people who are now at the start of their career or are in the middle of it will still benefit from it in 20 or 30 or 40 years' time. will see, as Marco rightly wonders above.


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