Only six national pension systems earned a 'B' grade on Mercer's 2011 global index, which was given to systems with "sound structure" and "room for improvement."
The best systems are in the Netherlands, Switzerland, Sweden, Australia, Canada and the UK.
Every other pension system was rated as unsound, jeopardizing the future of the elderly population. The U.S. earned a C grade, signifying "some major risks and/or shortcomings."
Netherlands -- rated "B+"
Adequacy: 75.9/100
Sustainability: 70.8/100
Integrity: 91.4/100
"B" refers to: A system that has a sound structure, with many good features, but has some areas for improvement that differentiate it from an A-grade system. Adequacy is an index based on funding. Sustainability is based on demographic trends. Integrity refers to private-sector plans.
Source: Mercer
Australia -- rated "B+"
Adequacy: 73.6/100
Sustainability: 71.4/100
Integrity: 82.4/100
"B" refers to: A system that has a sound structure, with many good features, but has some areas for improvement that differentiate it from an A-grade system. Adequacy is an index based on funding. Sustainability is based on demographic trends. Integrity refers to private-sector plans.
Source: Mercer
Sweden -- rated "B"
Adequacy: 67.7/100
Sustainability: 75.4/100
Integrity: 79.9/100
"B" refers to: A system that has a sound structure, with many good features, but has some areas for improvement that differentiate it from an A-grade system. Adequacy is an index based on funding. Sustainability is based on demographic trends. Integrity refers to private-sector plans.
Source: Mercer
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