Every year, there are millions of people retiring from the workforce but, the crisis caused by the Covid-19 pandemic accelerated the number of retirements. The quality of pension plans varies widely all around the world. To help you find out which countries benefit the retired workers with better pension plans and which lag behind, the infographic tells it all.
The pension system varies in every country according to their economy and historical context which is why making direct comparisons is not easy. However, the pension rankings are made on the basis of the main sub-indexes of the universal elements, these are:
- Adequacy – It is the base income level and a design of the private pension system of the region.
- Sustainability – It is known as the state pension age and also the government’s advanced funding system and level of debt.
- Integrity – It is when the rules and governance is put together in order to protect the members of the plan.
Thailand on the other hand, has a low rate in adequacy i.e., 35.2. This can be increased by increasing the lowest payment the company offers to the poorest demographics. Another strategy to improve the adequacy score is to add more employees to the occupational pension plans.
When it comes to the lowest end of the spectrum, along with Thailand, Argentina, and the Philippines are seen to have the lowest scores in their sub-indexes.
