At the moment, the full new state pension offers £179.60 per week to those eligible at the current state pension age of 66. However, according to a new report, the quality of the state pension can vary drastically depending on where a person lives in the world. The UK was found to fall short of the mark in the study undertaken by Blacktower Financial Management.
Its report examined some of the best pension systems in the world, taking into account a number of factors.
These included average retirement ages, average pension contributions, and the percentage of the population who have participated in pension schemes.
Overall, the UK found itself ranked in a humble 25th place, with the pension system flatlining with the global average.
Many European countries beat the UK to have some of the best pension systems in the world.
The top five pension systems in the world were all recorded as countries who are members of the European Union (EU).
Finland was found to have the best pension system in the world, with high public expenditure on pensions, and a strong percentage of the population saving for retirement.
It was closely followed by Poland, Sweden, Slovenia and France rounding up the top five.
Other countries seen to have strong pension systems were Latvia, Greece, the Czech Republic, Switzerland, Israel, Italy, Austria, Spain, Norway and Japan.
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In the top 15 countries, the retirement age can greatly vary, but all can expect to retire over the age of 60.
The lowest retirement age out of these countries was found in Slovenia, Greece and Israel, where people can expect to leave the workforce at 62.
At the other end of the spectrum is Italy, where the normal retirement was recorded at 71.3 years of age.
With the UK pension system described by Blacktower as “lagging behind” in 25th place, many British retirees could be disappointed by their retirement prospects.
“Until then, workers around the British Isles find themselves working for much longer, only to retire into a pension system where they have less spending power and less freedom.
“Not only is this a blow to a person’s quality of life, but it is a massive blow for the UK economy.
“Our research reveals the world’s best countries for pension systems, this research is something to seriously consider when deciding which country to go live and work overseas.
“Inevitably, this will impact your future pension, meaning you may have to work for longer to fund your comfortable retirement depending on which country you live in.”
A Government spokesperson said: “It is not possible to make realistic comparisons internationally between state pension levels due to differences between countries such as tax and healthcare systems, access to occupational pensions and the availability of other welfare benefits.
“Since Automatic Enrolment was introduced in the UK, more than 10 million workers have been enrolled into a workplace pension, with an additional £28.4billion per year being saved since 2012.”