The Netherlands has been named as having the world’s best pension scheme, after losing the crown to Iceland in 2022. Thankfully, the Dutch system has regained the top spot, according to the American consulting firm Mercer’s 2023 ranking.
The ranking compared the pension packages available in 47 countries, focusing on three main areas, each weighted differently:
The countries are then given an aggregate score out of 100, and countries are then graded on the basis of this score: those countries scoring higher than 80 were awarded an “A” grade, with the other countries scoring down to a minimum of grade E.
The ranking paid special attention to the role of artificial intelligence in calculating pension investments, stating that the increasing prevalence of AI will lead to reduced costs in pension planning, as well as the potential of software to help pension planners make more informed financial decisions relating to investments, market outlook and upcoming risks.
"The ongoing expansion of AI within the operations and decisions of investment managers could lead to more efficient and better-informed decision-making processes, which could potentially lead to higher real investment returns to pension plan members," said David Knox, senior partner at Mercer, told Euronews.
In 2023, the Netherlands returned to the top spot, receiving an “A” grade in all categories, and taking home an overall score of 85. Behind the Netherlands came Iceland, Denmark and Israel.
By contrast, the countries coming in last place have been named as Thailand, Turkey, the Philippines, Argentina and India, with these nations receiving a “D” grade for their pension system.
According to Mercer, these are the top 10 countries in the world with the best pension systems:
For more information about the methodology used by the ranking, or to see the rankings in full, visit Mercer’s website.