Aussies top retirement savings system
Australia has come out on top after Allianz Global Investors recently ranked ‘the land down under’ as having the best prepared retirement savings system in the world. Followed by countries such as Sweden, Denmark, New Zealand and the Netherlands, Australia’s retirement savings system received the lowest score and was considered to be the “best prepared for the future”.
Australia has come out on top after Allianz Global Investors recently ranked ‘the land down under’ as having the best prepared retirement savings system in the world.
Followed by countries such as Sweden, Denmark, New Zealand and the Netherlands, Australia’s retirement savings system received the lowest score and was considered to be the “best prepared for the future”.
Allianz Australia managing director, Terry Towell, told The Age Australia was the “under the least pressure to reform”.
“Australia’s two-tier system of lean public pensions and highly developed funded superannuation pensions means we are the best prepared with respect to the potential future burden on public finances,” he said.
Mr Towell also claimed Australia’s retirement savings system ranked number one because: family support structures are moving towards more formalised public systems, pay-as-you-go systems are headed towards funded systems and defined benefit towards defined contribution systems.
The Allianz Global Investors Pension Sustainability Index measured the pressure on governments across the world to reform their pension system and uses a range of indicators such as demographic developments, public finances and pension system designs.
According to the index, countries such as Greece, India, China and Thailand showed the greatest need for pension reform. Greece was reportedly listed as the country under the most pressure as its retirement age was still low and public replacement rates – the percentage of a worker’s pre-retirement income paid out by the pension system upon retirement – was too high.
