Australia’s superannuation system ranked world’s second best

The Mercer Global Pension Index, a comprehensive annual report that rates the quality of international retirement schemes, has placed Australia’s superannuation system as the world’s second best.

Denmark was ranked number one, with the Netherlands, Finland and Switzerland rounding out the top five. Australia, Canada, Chile and Singapore were the only non-European states to make the top ten.

Representatives from groups representing the interests of Australian retirees have expressed surprise at the finding, pointing out that the full pension rate currently sits close to the poverty line.

Australia’s position improved thanks to the recent superannuation guarantee increase from 9.25%-9.5%. Industry representatives have claimed that if the guarantee rises to 12%, as is the government’s long-term plan, Australia could reach the number one position.