Global Pension Index has listed the top countries that provide the best pension system in the world to their citizens. The pension index is important in taking care of and developing pension programs as a lack of it will create pressure on the economy. We will discuss the Global Pension Index 2023 top 3 countries and the position of India in the pension Index in this article. Keep reading for more information.
Which Is the Number 1 Country In the Global Pension Index 2023 List?
According to the data, the country with the best pension system for the citizens is the Netherlands with an index value of 85. The second number is acquired by Iceland with an 83.5 index value and the third number is acquired by Denmark with an 81.3 index value. The Netherlands maintained this position last year too as the country has provided a better pension-paying system to the citizens.
What Is The Position Of India In the Global Pension Index?
The 2023 list has mentioned India in the 45th position with an index value of 45.9 which is slightly better than 44.5 in the last year. India has the largest population which also makes it difficult for the government to bring quick changes. In India, the pension is deducted every month from the employee’s salary if he/she is a government employee. Apart from it, there are also Employee Provident Funds known as EPFO. Many other small initiatives are also been taken by the government. Stay tuned for more information.
How Does the Global Pension Index Work?
The results are calculated after comparing several retirement income systems that cover more than half of the population. The comparison system that was followed has added some new systems taken from Botswana, Croatia, and Kazakhstan. Many countries are working actively on it. The Pension Index is directly related to the birth rate, the fall in the birth rate leads to more of the older generation and less of the younger generation.
This means that if the old people population increases, this will lead to less number of active workforce or people working and a more dependent population. Many Asian countries like China, Korea, and Japan are also working on the improvement. We have seen that Japan has faced this situation where elder people are more rather than younger people. Similarly, after China introduced the one-child policy, some changes are also seen there, which can affect the overall index value.