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Why Your Retirement Depends on Where You Live - Video học tiếng Anh
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Why Your Retirement Depends on Where You Live
Why Your Retirement Depends on Where You Live
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Phụ đề (70)
0:00
Where you live could determine whether you retire comfortably or not. And that matters
0:04
more than ever as people live longer and populations age rapidly around the world.
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By 2050, there will be 52 seniors, aged 65 or older, for every 100 working age adults.
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The working age population is expected to shrink by 13% over the next 40 years.
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This pace is unprecedented.
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Globally, people over 60 already outnumber children under five.
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With fewer workers supporting more retirees, the strain on pension systems is only set to grow.
0:34
And when you retire, how secure you are may depend largely on where you live.
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Different countries are in different places. What's affordable for one is not affordable for
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another. There are emerging markets. There are very traditional markets. We have some countries
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with a lot of aging and very low birth rates, whereas in other countries that isn't the case.
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The Mercer CFA Institute Global Pension Index compares retirement systems across 52 countries,
1:02
covering about 65% of the world's population.
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Countries like the Netherlands, Iceland, and Denmark continue to rank among the best.
1:10
And for the first time, Singapore's joined them,
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becoming the first Asian system to earn an "A" grade.
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Overall, systems are improving. But are they improving fast enough?
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We compare the systems on three different metrics. Firstly, on adequacy. Is there enough? Secondly,
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sustainability. Can I afford to give what I'm giving today tomorrow? And thirdly,
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integrity. This is all about transparency. Can I trust what the system says and does?
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We have some systems that are provided by the government.
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Some are private. Some are a mixture. Many are a mixture.
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Singapore is a useful case study.
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It's already a "super-aged" society with one in four people expected to be over 65 by 2030.
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Its pension system, the Singapore Central Provident Fund, covers retirement,
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housing and healthcare and it has been feeling the pressure.
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Over a decade or so ago, the public perception towards the CPF was quite negative and so then the
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government has to extend quite a bit of effort to explain,
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to engage the citizenry and even to make some changes to CPS system.
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Trust and confidence in the system is very important. One of the best indicators of the
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trust and confidence is that the CPF members are voluntarily putting in monies in the CPF.
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Another key feature - gradual reform.
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These are very major long-term decisions and so it affects people for a long haul. It takes time for
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them to understand it and perhaps ask questions, engage and then try to apply into their life.
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Around the world, pension systems are evolving in different ways.
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Governments are increasingly encouraging pension funds to invest at home, channeling
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retirement savings into national priorities like infrastructure, housing, and economic growth.
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That debate is happening. It's been happening in Canada, UK, US, Australia. There's
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increasing global uncertainty, and in that world, national interests often come to the fore.
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Other countries are exploring similar approaches
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from capital market reforms in South Korea to economic diversification efforts in Saudi Arabia.
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But investment strategy isn't just about geography. It's also about flexibility.
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There is an increasing amount of assets invested in each country in private pension funds. Nine
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of the top twelve systems in the index had the least amount of investment restrictions and how
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pension funds can invest. By giving free reign, it improves the retirement outcomes.
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One example is Australia. Its pension system - known as the superanuation
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fund - combines mandatory contributions with a relatively flexible investment approach.
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The super fund assets are now something like 140% of GDP, making it the fourth largest
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asset pool in the world. And that's despite Australia being a smaller economy than many.
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While governments are stepping up, pension systems still have major gaps to close.
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Around 2.1 billion people worldwide work in the informal economy,
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lacking access to social protection, income security or traditional retirement plans.
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That challenge hits hardest in countries already struggling with weaker pension infrastructure.
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There were four countries who have a degrade overall. These are systems with some major
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weaknesses. India, Argentina, the Philippines, and Turkey. And some of that is very systemic
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issues like there's often a very big informal or working sector, people are not in formal
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employment. There's very little regulation for those private pension systems or if there is,
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it's not necessarily followed. There is very limited preservation. So you can
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access money before retirement because people take money out before they get
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there. So it's not a retirement income system. It's a savings system instead.
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Even in stronger systems like Singapore's, new challenges are emerging.
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In more recent years, there's a lot of gig workers who work through various platforms. So,
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government has been working with this platform providers
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to help the self-employed persons that they work with to contribute to their CPF as well.
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At the same time, countries are trying to balance generosity with sustainability.
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This is why the index doesn't look at adequacy without looking at sustainability. It's all very
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well in having the best gold-plated benefits provided today, but if in two years' time you
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can't afford to continue to deliver those, then actually confidence of the citizens changes.
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Increases in life expectancy, one of the biggest demographic changes in Singapore, in the whole
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world. You got to help people envisage the future that people will be living longer.
