Europe's 5 most generous pension systems

[Rage for Order]

Just so you know, we're getting screwed.

http://www.csmonitor.com/World/Global-Issues/2010/1019/Europe-s-5-most-generous-pension-systems/Iceland

5. Iceland

In Iceland, the average earner gets back 96.5 percent of his average net income (after taxes). There, people become eligible for their pensions at 67 and they are eligible for a full pension after 40 years of residency (payments are proportionally reduced for shorter periods of residency). That comes out to ISK 3.4 million a year (about $49,800 a year), or about 8 percent of the average Icelander's earnings. Pension spending amounts to about 2 percent of the annual GDP. In France, where the government says pension spending is at crisis level, pension spending is 12.4 percent of GDP.

4. Luxembourg

In Luxembourg, the average earner receives 98.1 percent of his average net income (after taxes) back. People become eligible for their pensions after 40 years of contributions. For most, that is at age 65, but pensions are available beginning at 60 (and some are able to draw early pensions at 57). That comes out to EUR 43,600 a year (about $54,800 a year), or about 10 percent of the average citizen's earnings. Pension spending is 7.2 percent of annual GDP.

3. Denmark

In Denmark, the average earner receives 98.7 percent of his average net income (after taxes) back. People become eligible for their pensions at 65, but that number is poised to be raised gradually to 67 by 2027. Danes are are eligible for a full pension after 40 years of residency (payments are proportionally reduced for shorter periods of residency). That comes out to DKK 330,900 a month (about $55,700 a year), or about 17.5 percent of average earnings. Pension spending is about 5.4 percent of annual GDP.

2. The Netherlands

In The Netherlands, the average earner receives 105.5 percent of his average net income (after taxes) back, which is possible because many people receive more back from their pension funds than they paid in each year. People become eligible for their pensions at 65. That comes out to EUR 39,700 a year (about $49,800 a year), or about 30 percent of average earnings. Pension spending is 5.4 percent of annual GDP. (The new government has pledged to raise the retirement age to 66.)

1. Greece

In Greece, the average earner receives 110.4 percent of his average net income (after taxes) back. The normal pension age for people is 65, but to be eligible for a pension at this age, a person must have contributed to the pension system for at least 15 years. If a person has contributed money for 37 years, he is free to retire with a pension regardless of whether he has reached 65. The average pension is EUR 23,000 a year (about $28,900 a year), or 27.1 percent of average earnings. Pension spending is 11.5 percent of annual GDP, the highest in the EU.
(Editor's note: All figures date to 2009, prior to pension reform in 2010)

[midnight]

1. My Danish relatives are taken care of in what has been described as a beautiful attentive

environment by my mother, a registered nurse, visiting our relatives in a govt. run nursing home......

[BlueJazz]

2. Gee...I wonder what the Pension amount is here in the Great USA ???

[Rex]

3. We mostly survive paycheck to paycheck in America

try not to have too many debts and/or loans. Oh yeah and don't get sick.

[KillCapitalism]

4. Another hallmark of a civilized society.

Universal health care and a very strong pension program are both things we need so badly.

I noticed they mentioned France at the beginning of the article. Sarkozy seems to want to follow our retirement model, which totally sucks.

[muriel_volestrangler]

5. Those figures seem to make little sense; can anyone explain, please?

Take the Iceland ones:

In Iceland, the average earner gets back 96.5 percent of his average net income (after taxes).

OK, I think this means that, on a pension after retirement, the net income of the average person is 96.5% of what is was when they were working. Surprisingly high, but this is the list of the best places for pensions

There, people become eligible for their pensions at 67 and they are eligible for a full pension after 40 years of residency (payments are proportionally reduced for shorter periods of residency). That comes out to ISK 3.4 million a year (about $49,800 a year), or about 8 percent of the average Icelander's earnings.

$49,800 is 8% of $622,500. In what sense is "the average Icelander's earnings" $622,500? For lifetime earnings, it'd be very low; for yearly earnings, it'd be impossibly high. And why is there a huge difference between the 96.8% and 8% numbers? Don't they mean the same thing? So what does this mean at all?

Pension spending amounts to about 2 percent of the annual GDP. In France, where the government says pension spending is at crisis level, pension spending is 12.4 percent of GDP.

If pension spending is only 2% of GDP, but "the average earner gets back 96.5 percent of his average net income (after taxes)", this would seem to mean there are almost no pensioners in Iceland at all. They can't have income at roughly the same level as the working population, but be a tiny proportion of GDP, unless there are very few of them.


Looking at the other countries' figures doesn't seem to help. Has this reporter taken someone else's report, misunderstood it a bit, and copied down some figures without checking to see if they make any sense after the rewrite? Or can anyone explain what they've written as making sense?

[oldhippie]

6. You're right, the numbers don't make sense.

Each time I think I have it figured out, something in the next example blows it.

[eallen]

7. I suspect things are going to change in Greece. Not for the better.