{"id":35475,"date":"2025-08-29T12:03:01","date_gmt":"2025-08-29T12:03:01","guid":{"rendered":"https:\/\/financialrush.com\/?p=35475"},"modified":"2025-08-29T12:03:01","modified_gmt":"2025-08-29T12:03:01","slug":"global-retirement-systems-compared-for-long-term-security","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=35475","title":{"rendered":"Global retirement systems compared for long-term security"},"content":{"rendered":"

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Retirement<\/a> funding looks very different depending on where you live.<\/p>\n

While the United States leans heavily on voluntary 401(k)-style<\/a> savings plans, other nations rely on mandatory contributions or more traditional pensions to ensure broad coverage and steady income.<\/p>\n

Mercer CFA Institute Global Pension Index<\/a> takes these structural differences into consideration when ranking some of the world\u2019s biggest retirement systems.<\/p>\n

\u201cWe do it because we want to give a picture of the retirement landscape,\u201d said Christine Mahoney, global pensions leader at Mercer, a consulting firm. \u201cWe try to look at what the public systems are, what the private systems are, and look at how people will fare in retirement across all of those.\u201d<\/p>\n

The U.S. retirement system received a C+ rating<\/a> from the Mercer CFA Institute Global Pension Index in 2024. It ranked 29 out of 48 global pension systems assessed.<\/p>\n

\u201cIt means that the system is solid, designed well, but there is a significant risk,\u201d said Mahoney. \u201cAnd if we don\u2019t clear that risk up, the system could be in some jeopardy.\u201d<\/p>\n<\/div>\n

How the U.S. could \u2018significantly\u2019 improve its C+ grade<\/h2>\n
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Halfpoint Images | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Countries<\/a> around the world are raising their retirement ages<\/a>, as well as requiring mandatory contributions<\/a> into personal retirement savings, according to research from the Organisation for Economic Co-operation and Development. Experts suggest this can help address modern problems such as people living longer and fewer workers paying into the system.<\/p>\n

\u201cFor the U.S. system, the thing that could change that grade significantly, the most important is actually coverage,\u201d Mahoney said. \u201cOur 401(k) plans are voluntary.\u201d<\/p>\n

The Netherlands is frequently given a top score in the index. Mahoney says one of the key features that makes the Dutch system stand out is mandatory contributions.<\/p>\n

There are two broad models for retirement plans, and they function very differently:<\/p>\n