Why Your Retirement Depends on Where You Live

सीखने का मोड चुनें:

Highlight:

3000 Oxford Words4000 IELTS Words5000 Oxford Words3000 Common Words1000 TOEIC Words5000 TOEFL Words

उपशीर्षक (70)

0:00Where you live could determine whether you retire comfortably or not. And that matters

0:04more than ever as people live longer and populations age rapidly around the world.

0:10By 2050, there will be 52 seniors, aged 65 or older, for every 100 working age adults.

0:16The working age population is expected to shrink by 13% over the next 40 years.

0:22This pace is unprecedented.

0:24Globally, people over 60 already outnumber children under five.

0:29With fewer workers supporting more retirees, the strain on pension systems is only set to grow.

0:34And when you retire, how secure you are may depend largely on where you live.

0:39Different countries are in different places. What's affordable for one is not affordable for

0:45another. There are emerging markets. There are very traditional markets. We have some countries

0:50with a lot of aging and very low birth rates, whereas in other countries that isn't the case.

0:56The Mercer CFA Institute Global Pension Index compares retirement systems across 52 countries,

1:02covering about 65% of the world's population.

1:05Countries like the Netherlands, Iceland, and Denmark continue to rank among the best.

1:10And for the first time, Singapore's joined them,

1:12becoming the first Asian system to earn an "A" grade.

1:16Overall, systems are improving. But are they improving fast enough?

1:19We compare the systems on three different metrics. Firstly, on adequacy. Is there enough? Secondly,

1:28sustainability. Can I afford to give what I'm giving today tomorrow? And thirdly,

1:33integrity. This is all about transparency. Can I trust what the system says and does?

1:40We have some systems that are provided by the government.

1:44Some are private. Some are a mixture. Many are a mixture.

1:47Singapore is a useful case study.

1:49It's already a "super-aged" society with one in four people expected to be over 65 by 2030.

1:55Its pension system, the Singapore Central Provident Fund, covers retirement,

1:59housing and healthcare and it has been feeling the pressure.

2:01Over a decade or so ago, the public perception towards the CPF was quite negative and so then the

2:09government has to extend quite a bit of effort to explain,

2:14to engage the citizenry and even to make some changes to CPS system.

2:20Trust and confidence in the system is very important. One of the best indicators of the

2:26trust and confidence is that the CPF members are voluntarily putting in monies in the CPF.

2:32Another key feature - gradual reform.

2:34These are very major long-term decisions and so it affects people for a long haul. It takes time for

2:41them to understand it and perhaps ask questions, engage and then try to apply into their life.

2:48Around the world, pension systems are evolving in different ways.

2:51Governments are increasingly encouraging pension funds to invest at home, channeling

2:56retirement savings into national priorities like infrastructure, housing, and economic growth.

3:02That debate is happening. It's been happening in Canada, UK, US, Australia. There's

3:08increasing global uncertainty, and in that world, national interests often come to the fore.

3:14Other countries are exploring similar approaches

3:16from capital market reforms in South Korea to economic diversification efforts in Saudi Arabia.

3:22But investment strategy isn't just about geography. It's also about flexibility.

3:26There is an increasing amount of assets invested in each country in private pension funds. Nine

3:35of the top twelve systems in the index had the least amount of investment restrictions and how

3:42pension funds can invest. By giving free reign, it improves the retirement outcomes.

3:49One example is Australia. Its pension system - known as the superanuation

3:53fund - combines mandatory contributions with a relatively flexible investment approach.

3:58The super fund assets are now something like 140% of GDP, making it the fourth largest

4:07asset pool in the world. And that's despite Australia being a smaller economy than many.

4:14While governments are stepping up, pension systems still have major gaps to close.

4:18Around 2.1 billion people worldwide work in the informal economy,

4:22lacking access to social protection, income security or traditional retirement plans.

4:28That challenge hits hardest in countries already struggling with weaker pension infrastructure.

4:33There were four countries who have a degrade overall. These are systems with some major

4:38weaknesses. India, Argentina, the Philippines, and Turkey. And some of that is very systemic

4:44issues like there's often a very big informal or working sector, people are not in formal

4:49employment. There's very little regulation for those private pension systems or if there is,

4:55it's not necessarily followed. There is very limited preservation. So you can

4:59access money before retirement because people take money out before they get

5:03there. So it's not a retirement income system. It's a savings system instead.

5:07Even in stronger systems like Singapore's, new challenges are emerging.

5:11In more recent years, there's a lot of gig workers who work through various platforms. So,

5:16government has been working with this platform providers

5:19to help the self-employed persons that they work with to contribute to their CPF as well.

5:24At the same time, countries are trying to balance generosity with sustainability.

5:29This is why the index doesn't look at adequacy without looking at sustainability. It's all very

5:36well in having the best gold-plated benefits provided today, but if in two years' time you

5:43can't afford to continue to deliver those, then actually confidence of the citizens changes.

5:50Increases in life expectancy, one of the biggest demographic changes in Singapore, in the whole

5:56world. You got to help people envisage the future that people will be living longer.

श्रवण अभ्यास

Why Your Retirement Depends on Where You Live

Highlight: