The Philippines Has One of the Worst Retirement Systems in the World, According to Report
Want to retire early? Maybe hold off until you're sure you can really make it on your own because a new report has found that the Philippines has the worst retirement system in the world.
The 2019 Melbourne Mercer Global Pension Index, a report that measures pension system performance, graded the Philippines an overall index value of 43.7. Other countries in the same value include Korea, China, Japan, India, Mexico, Turkey, Argentina, and Thailand.
The countries in the top 10 are Netherlands, Denmark, Australia, Finland, Sweden, Norway, Singapore, New Zealand, Canada, and Chile.
The report also offers suggestions on how to bring up the index value:
- increasing the minimum level of support for the poorest aged individuals
- increasing coverage of employees in occupational pension schemes thereby increasing the level of contributions and assets
- setting aside funds in the public system for the future thereby reducing reliance on the pay-as-you-go system
- introducing non-cash out options for retirement plan proceeds to be preserved for retirement purposes
It's not all bad news, however. The Philippines scored fairly well in terms of sustainability, which means it provides long-term benefits as opposed to generous short-term benefits.
It's all still alarming, to say the least, since most Filipinos don't even save enough for retirement to begin with.