I Wanna Grow Old with You: What Gov’t Pensioners in Other Countries are Getting for What They Paid For
Jan 29, 2016 • Abu Poblete
4. Canada
Via Macleans.ca
One special thing about the Canadian pension system is its wide range of access. Canadian pensioners have the retirement pension plan ($1,092 or P37,017.76 per month), Disability benefits ($1,290 or P43,729.77 per month), benefits for Canadians living abroad, death benefits ($2,500 or P84,747.61 per month) and Survivor’s pension ($655.50 or P22,220.82 per month).
Added to their pension system is Canada’s healthcare and services system, which is mostly free as guided by the Canada Health Act of 1984. Private entities who handle most of the healthcare services in Canada work hand in hand with the government to ensure that residents are living healthy in the best way.
A normal meal from McDonald’s costs about C$4-6 a person or P130 to P200.
(CAD1 = P34.01 as of this writing.)
3. New Zealand
Via teara.govt.nz
New Zealand’s pension system consists of three pillars: the New Zealand Superannuation, the occupational supperannuation and KiwiSaver schemes and private pension savings.
The New Zealand Superannuation is the country’s public pension system, which provides social protection rather than replacing earnings. This pension is paid to all residents in the country at the age of 65, and is financed from general tax revenues. Single pensioners receive an annual rate of $19,475.56 (P601,261.39), married pensioners receive $547 (P16,887.32) each, while the hospital rate is $86.90 (P2,682.83).
The KiwiSaver scheme, an iconic voluntary, work-based savings scheme, has revolutionized the saving habits of its citizens. Since it began, 2.3 million New Zealanders have signed up, which is half of the general working population. KiwiSaver is also portable from job to job.
A month’s worth of utilities in New Zealand like heating, gas, electricity and water costs about $324 or P10,038.93.
(NZD1 = P30.98 as of this writing.)
2. Netherlands
Via afroeuro.org
The Netherlands is the second highest in the Mercer index and has very diverse pension system funding sources and an accurate measurement, contribution and distribution scheme regulated by the Dutch Authority for Financial Markets.
Just like New Zealand, Netherlands also has three pillars: the state or AOW pension, collective pension funds and individual pension products.
The AOW pension is for pensioners from the age of 65, and provides basic benefit payments of up to 70% of the minimum net wage. The pension of the citizens under AOW accrue 2% of the state pension benefit for each year that they pay their health insurance. Couples living together receive €700 (P36,392.96) monthly while people living alone receive €1,000 (P51,989.94).
The second pillar are collective pension schemes connected to specific industries and companies which are managed by pension funds or insurance companies. These companies pay for their employees’ monthly contributions to their pension funds. These companies have their own set of rules and schemes as suits their preference, which is why future pensioners should be responsible in updating their employers about their pension fund.
The third pillar is for the self-employed in industries with no collective pension funds. This pillar gives people the freedom to manage their pension products and investments whether in life insurance, shares or property and other related tax breaks.
A student in Netherlands needs about €1,000 or P51,989.94 to cover daily expenses, transportation, food, study materials and rent.
(€1 = P52.24 as of this writing.)
1. Denmark
Via scancomark.com
The Danish pension system was the first A rated pension system by Mercer. “Denmark’s unique A grade ranking has been awarded in recognition of the country’s well-funded pension system, its high level of assets and contributions, the provision of adequate benefits and a private pension system with well-developed regulations,” Mercer said.
The Danish system consists of social security, workplace plans and personal savings. Its difference with Canada’s similarly impressive pension system is that it is compulsory for an employer to provide pension plans for employees, who are also in turn required to to enroll in them. Implementing these rules on employees and employers pretty much eliminates the problem of low participation from the population.
What makes the Danish system the best in the world are its high participation rate, its wide coverage in terms of sources, contribution and successful distribution.
In Denmark, one kilo of rice is worth DKK 14.53 or P101.
(DKK1 = P6.96 as of this writing.)
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