New Delhi: Retirement preparation should be given high importance while conducting personal financial planning. All other goals can be managed through different loans, but there are no loans available for retirement costs. And after retirement, pension plans offer stability and financial security. It is a type of insurance that pays out money towards retirement.
To put it another way, you transfer and save a portion of your current income. Pensions are crucial for providing retirees with a dignified and steady financial future. (Also Read: Unlike Global Economy, India Would Not Slow Down: RBI Article)
Understanding whether retirement income systems in various regions of the world can sustain their expanding populations and aspirations for many years to come is vital. The best pension system in the world, according to the Global Pension System, is found in Iceland. (Also Read: Ahead Of His 5th Marriage, A Look At Rupert Murdoch’s Past Relationships – In Pics)
Iceland’s pension plan is rated Grade A and takes the top rank with a score of 84.7. The Netherlands is placed second among countries with effective pension plans, with a score of 84.6.
Where does India Stand In Pension System Ranking?
India was ranked 41 and given a Grade D by the Global Pension System’s Chartered Financial Analyst when its pension system was scaled. According to research by the Autonomous Research Institute of Public, which is part of the Union Ministry of Finance, 85 percent of the nation’s workers lack access to a pension system.
The only source of funding for pensioners is social income. Yet, 26 percent of elderly people and 57 percent of senior citizens in the United States do not receive any type of pension. Those who live below the poverty line receive annuity payments. (Also Read: Unlike Global Economy, India Would Not Slow Down: RBI Article)
Although the aforementioned truth is accurate for India, have you ever considered other nations? Are you familiar with their pension system and the finest nation for retirees’ funds?
The United States is ranked 20th in the World Pension Report 2022. According to the estimate, 65 percent of the world’s population will not be able to retire with adequate pensions.
The General Old Age Pension Act, Additional Employer-Sponsored Accounts, and Additional Individual Pension Plans are the three main pillars that sustain the Dutch retirement system. A retiree becomes instantly eligible for a pension once they become 66 years old.
