If you’re considering moving to a European country on a permanent basis, then you’ll want to weigh up a whole range of potential advantages. Among the most important of these is the amount of support you’ll get from the state when you reach retirement age.
Some countries are more generous with their pensions than others. Let’s take a look at the countries that excel, and what it is that makes them perform so highly.
Which countries top the list?
Accoring to the Mercer CFA Global Pension Index, the best European countries when it comes to pensions are Denmark and the Netherlands, both of which were awarded an ‘A’ grade by the index. Coming just behind, in the ‘B’ Category, are Finland, Sweden, Norway, Germany, Switzerland and Ireland.
As you might gather, it’s generally Scandinavian countries that tend to perform best ? with the Netherlands being something of an outlier relative to its neighbours on the European mainland. The Dutch enjoy a flat-rate public pension system, and an opt-in pension plan with widely defined benefits. This means that, if you’re offered a particular sort of retirement plan, you can be reasonably sure of what it contains. Your earnings during your retirement will tend to be based on your lifetime average.
Ways to Increase your Retirement Pot
If you’d like to enjoy a healthier cash reserve to get you through retirement, then you might consider a range of different options. Many of these involve liquidating a portion of your assets. If you’ve already paid for the home you live in, then you might look to either downsize (that is, move to a smaller or less expensive home and pocket the difference) or an equity release mortgage.
Another option is to set up a side hustle, perhaps based on a hobby you already intend to spend time with during your retirement. If you’re going to be spending a lot of time with woodworking, glass-blowing, gardening or novel-writing, then you might well be able to generate a respectable income to supplement your retirement pot.
How does the UK Compare?
The UK fits into the ‘C’ category, alongside Belgium, France and the USA. According to the analysis, this means that the system includes many good features, but also a few risk factors. As such, you stand a better chance of enjoying a financially secure retirement if you emigrate ? provided that the process of moving is relatively painless.
Another analysis from This is Money puts the UK bottom of a league of rich democratic countries when it comes to net replacement rates for earnings. You’ll average around 28% of your income, here ? which compares poorly to the 59% average elsewhere.
