The Netherlands ended a six-year run for the Danish atop Mercer’s Global Pension Index. Europe dominated the rankings as all countries struggled to balance adequacy and sustainability.
The ratio of working years to retirement years should be at least 2 to 1 and raising the pension age is a universal fix for strained systems, the author of Mercer’s Global Pension Index says.
Assuming future state contributions fund the full present value of new benefits, many US state systems will run out of money in 10-20 years. This paper argues the expected shortfalls raise the possibility that the federal government will be faced with a decision whether to bail out states driven to insolvency by their pension programs.
June 22, 2011
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