21 Oct 2020
Pensioners in the UK are financially worse off than those in other countries such as Germany, Ireland and Australia.
In a global chart of the most favourable countries for retirement, the UK ranked 15th.
Compiled by the Mercer CFA Institute Global Pension Index, the comparison between countries gauges state and private funding components based on their pension schemes.
Included in the rating system were the security of pension schemes and whether they were sufficient to live on, reports The Express.
Topping the chart as the best place to retire is the Netherlands, closely followed by Denmark.
In addition, Finland, Norway and Sweden were also above the UK as having a better retirement system.
Other more favourable retirement destinations on the list include Israel, Ireland, Singapore and Canada.
In Mercer’s Pension Index, the UK had a score of 64.9 points, up from last year’s 64.4 reading due to an improvement on its "sustainability".
Moreover, the UK received a high score in terms of “integrity”, with people paying into a pension of the opinion they could trust the system.
According to Benoit Hudon of Mercer, there was too big a focus on security within the system in the UK, meaning the retirement income was not as adequate and the cost to taxpayers and savers was not as sustainable as other locations.
He stated: “There are numerous levers the Government could pull to improve the system.
"Though, first a fundamental debate is needed to agree the optimal balance between security, adequacy, and affordability."
Mr Hudon added that the UK needed to review the "risk" within the pension system.
The report went on to say that people in Britain were not saving enough for their retirement.
This is a view echoed by deVere CEO Nigel Green: “In my experience, people simply are not saving enough to live a comparable lifestyle to their current one throughout retirement.
“Whatever stage you are at in life there are financial solutions that can help with retirement planning and help you master the art of saving correctly.
“The sooner you start, the easier it will be to attain the desired and/or required amount of savings.”
In terms of Europe, France received a worst score than the UK, ranking 20th in the index, due to a low “sustainability” score.