The top three pension systems: Denmark, Finland, and the Netherlands
Westerhout,Ed Jensen,Svend E. Hougaard Lassila,Jukka Maattanen,Niku Valkonen,Tarmo
Westerhout,Ed
Jensen,Svend E. Hougaard
Lassila,Jukka
Maattanen,Niku
Valkonen,Tarmo
Abstract
According to the 2018 Mercer Global Pension Index, the pension systems of Denmark, Finland, and the Netherlands are the best three in the world. They ensure a minimum old age income for all and provide relatively high replacement rates for a large majority of citizens. At the same time, their fiscal sustainability is relatively robust with respect to population ageing. This article seeks to identify differences and similarities between these three pension systems, including the institutional framework within which they operate. The authors emphasize the collective and compulsory nature of the earnings-related pension schemes and the important role for social partners in decision making as their common elements of success. They also discuss the most important challenges these systems face, namely, how to maintain the legitimacy of their decision-making processes given declining unionization and how to avoid restricting individual choices too much.
Description
Date
2020-10
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
Retirement, Social Security, Pension Funds, Wealth Management, SDG 1 - No Poverty
Citation
Westerhout, E, Jensen, S E H, Lassila, J, Maattanen, N & Valkonen, T 2020, 'The top three pension systems: Denmark, Finland, and the Netherlands', The Journal of Retirement, vol. 8, no. 2, pp. 76-82. https://doi.org/10.3905/jor.2020.1.071
License
info:eu-repo/semantics/closedAccess