{"id":27546,"date":"2023-10-17T20:59:22","date_gmt":"2023-10-17T20:59:22","guid":{"rendered":"https:\/\/microloannexus.com\/personal-finance\/how-does-the-u-s-retirement-system-stack-up-against-other-countries-just-above-average\/"},"modified":"2023-10-17T20:59:23","modified_gmt":"2023-10-17T20:59:23","slug":"how-does-the-u-s-retirement-system-stack-up-against-other-countries-just-above-average","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=27546","title":{"rendered":"How does the U.S. retirement system stack up against other countries? Just above average."},"content":{"rendered":"
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Above average, but just.<\/p>\n

This is how the U.S. retirement system ranks in the latest Mercer CFA Institute Global Pension Index, which examines systems in countries across the world.<\/p>\n

The U.S. system, which is funded mostly by individual retirement accounts (IRA), 401(k)s and Social Security, received an overall grade of C+, according to the report released Tuesday. It scored 63 out of 100, down from last year\u2019s 63.9 and just squeaking in above the 62.9 average of all countries. U.S. scores declined in every subcategory \u2013 adequacy, sustainability and integrity \u2013 that make up the overall score. But the largest drag was from integrity.<\/p>\n

Integrity covers regulation and governance and protection, communication and reasonable costs for individuals in the system. Without integrity, people would lose confidence in the retirement safety net, the report said. The U.S. integrity score dropped to 59.5 from 61.7 last year, sharply below the 71.6 average and putting the nation at 41 out of 47 countries examined.<\/p>\n

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\u201cIt is critical that the community has confidence in the ability of private-sector pension providers to deliver retirement benefits over many years into the future,\u201d it said.<\/p>\n

Where does the US rank in retirement?<\/h2>\n

The U.S. retirement system ranked 22 out of 47 countries globally, the report said.<\/p>\n

What country has the best retirement?<\/h2>\n

The top three countries, according to the research, are:<\/p>\n

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  1. \n

    Netherlands (score of 85\/100)<\/p>\n<\/li>\n<\/ol>\n

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      Iceland (83.5)<\/p>\n<\/li>\n<\/ol>\n

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      1. \n

        Denmark (81.3)<\/p>\n<\/li>\n<\/ol>\n

        What country has the worst retirement?<\/h2>\n

        The bottom three countries, according to the report, are:<\/p>\n

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        1. \n

          Argentina (score of 42.3\/100)<\/p>\n<\/li>\n<\/ol>\n

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          1. \n

            Philippines (45.2)<\/p>\n<\/li>\n<\/ol>\n

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            1. \n

              India (45.9)<\/p>\n<\/li>\n<\/ol>\n

              Is it better to retire in Canada or USA?<\/h2>\n

              If you\u2019re just looking at retirement systems, the research report shows Canada\u2019s system ranks above the U.S.<\/p>\n

              Canada received an overall B grade and a score of 70.2 out of 100, compared with the U.S. grade of C+ and 63.0, respectively.<\/p>\n

              What\u2019s stressing retirement systems globally?<\/h2>\n

              Pressure is building on retirement systems all over the world, the report said. They include:<\/p>\n

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              1. \n

                Falling birth rates<\/strong> have \u201cmajor consequences for pay-as-you-go pension arrangements, which rely on the next generation of taxpayers to fund the pensions paid to previous generations. Many governments will need to tackle the very tricky issues of reducing the benefits or increasing the eligibility age for these pensions,\u201d it said.<\/p>\n<\/li>\n<\/ol>\n

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                1. \n

                  High inflation<\/strong> and interest rates increase the cost of existing government debt and may hurt the government\u2019s ability to continue offering current retirement services.<\/p>\n<\/li>\n<\/ol>\n

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                  1. \n

                    Transition to defined contribution plans<\/strong> from guaranteed pension plans means individuals carry all the risks relating to investment returns, inflation and, often, longevity.<\/p>\n<\/li>\n<\/ol>\n

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                    1. \n

                      Increase in gig workers<\/strong> and those in the informal labor market means more individually focused retirement plans and less reliance on employers. \u201cTechnology may be part of the answer to improving pension coverage, but this also requires strong government leadership,\u201d the report said.<\/p>\n<\/li>\n<\/ol>\n

                      Savings check: <\/strong>Smart ways to save for retirement at every age<\/span><\/p>\n

                      How can the U.S. improve retirement?<\/h2>\n

                      Some of the report\u2019s suggestions include:<\/p>\n

                      \u2022 Raising the minimum pension for low-income people<\/p>\n

                      \u2022 Maintaining the real value (or adjusting for inflation) of workers\u2019 benefits through to retirement<\/p>\n

                      \u2022 Limiting access to savings before retirement to preserve the money for retirement<\/p>\n

                      What can you do to improve your retirement?<\/h2>\n

                      Experts say you should:<\/p>\n