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SpanishDutch pension pots stand out among global retirement funds
The world’s rich nations face a double-whammy, with ageing populations meaning more retirees — just as low and negative interest rates make it harder for pension funds to secure the investment returns needed to fill up their coffers.
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Pensions typically have three pillars: a basic state payout designed to prevent people falling into poverty once they stop work; a larger slice related to lifetime earnings; and voluntary top-ups for those who can afford them.
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How they are organized and the level of private sector involvement differs markedly by country. Here is a brief overview of six large pension systems.
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NETHERLANDS – Dutch workers and employers pay into private pension funds that effectively promise to finance a final pension at a specific level. This is an increasingly rare example of a “defined benefit” system.
It costs a lot to fund but it is extremely generous: together with their state pensions, many Dutch workers enjoy the same income they had while working when they retire.
Read more @Reuters
