Denmark is the best placed country among the 25 constituent members of the EU to provide its citizens with adequate pensions, according to the European Pensions Barometer.
Two EU accession countries – Estonia and Latvia – are among the top four. Both countries relegated the Netherlands and the UK to fifth and sixth place respectively in the survey.
The UK pension system ranks sixth out of 25, despite the fact that the UK has the least generous state pension system in the EU. This is because of relatively favourable demography (in particular people do not retire as early as in many other EU countries); the historically strong private pensions system, and the affordability of the state pension.
Donald Duval, chief actuary at Aon Consulting, said: “Although the UK is better placed than many other EU countries, the inadequacy of the State Pension is a persistent problem, and the decline in company pensions (caused by over-regulation) means that the UK ranking is likely to decline in future.
“An apparently surprising feature of the Barometer is the strong performance of some of the recently joined countries such as Estonia and Latvia. However, this is primarily due to the poor mortality and relatively late retirement experienced in these countries, which makes it possible to provide relatively generous state pensions at an affordable cost. As the mortality in these countries improves (which one would hope would be accelerated by their joining the EU) then pensions may become more of a problem in the future.”
First mentioned in Cridland Report
Second acquisition of 2019
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