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Ranked: The Best and Worst Pension Plans, by Country

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Ranked: Countries with the Best and Worst Pension Plans

The global population is aging—by 2050, one in six people will be over the age of 65.

As our aging population nears retirement and gets closer to cashing in their pensions, countries need to ensure their pension systems can withstand the extra strain.

This graphic uses data from the Melbourne Mercer Global Pension Index (MMGPI) to showcase which countries are best equipped to support their older citizens, and which ones aren’t.

The Breakdown

Each country’s pension system has been shaped by its own economic and historical context. This makes it difficult to draw precise comparisons between countries—yet there are certain universal elements that typically lead to adequate and stable support for older citizens.

MMGPI organized these universal elements into three sub-indexes:

  • Adequacy: The base-level of income, as well as the design of a region’s private pension system.
  • Sustainability: The state pension age, the level of advanced funding from government, and the level of government debt.
  • Integrity: Regulations and governance put in place to protect plan members.

These three measures were used to rank the pension system of 37 different countries, representing over 63% of the world’s population.

Here’s how each country ranked:

CountryOverall ValueAdequacySustainabilityIntegrity
Argentina39.543.131.944.4
Australia75.370.373.585.7
Austria53.968.222.974.4
Brazil55.971.827.769.8
Canada69.27061.878.2
Chile68.759.471.779.2
China48.760.536.746.5
Colombia58.461.44670.8
Denmark80.377.58282.2
Finland73.673.260.792.3
France60.279.14156.8
Germany66.178.344.976.4
Hong Kong61.954.554.586.9
India45.839.944.956.3
Indonesia52.246.747.667.5
Ireland67.381.544.676.3
Italy52.267.41974.5
Japan48.354.632.260.8
Korea49.847.552.649.6
Malaysia60.650.560.576.9
Mexico45.337.557.141.3
Netherlands8178.578.388.9
New Zealand70.170.961.580.7
Norway71.271.656.890.6
Peru58.56052.464.7
Philippines43.73955.534.7
Poland57.462.545.366
Saudi Arabia57.159.650.562.2
Singapore70.873.859.781.4
South Africa52.642.34678.4
Spain54.77026.969.1
Sweden72.367.57280.2
Switzerland66.757.665.483
Thailand39.435.838.846.1
Turkey42.242.627.162.8
UK64.46055.384
U.S.60.658.862.960.4

The Importance of Sustainability

While all three sub-indexes are important to consider when ranking a country’s pension system, sustainability is particularly significant in the modern context. This is because our global population is increasingly skewing older, meaning an influx of people will soon be cashing in their retirement funds. As a consequence, countries need to ensure their pension systems are sustainable over the long-term.

There are several factors that affect a pension system’s sustainability, including a region’s private pension system, the state pension age, and the balance between workers and retirees.

The country with the most sustainable pension system is Denmark. Not only does the country have a strong basic pension plan—it also has a mandatory occupational scheme, which means employers are obligated by law to provide pension plans for their employees.

Adequacy versus Sustainability

Several countries scored high on adequacy but ranked low when it came to sustainability. Here’s a comparison of both measures, and how each country scored:

Ireland took first place for adequacy, but scored relatively low on the sustainability front at 27th place. This can be partly explained by Ireland’s low level of occupational coverage. The country also has a rapidly aging population, which skews the ratio of workers to retirees. By 2050, Ireland’s worker to retiree ratio is estimated to go from 5:1 to 2:1.

Similar to Ireland, Spain ranks high in adequacy but places extremely low in sustainability.

There are several possible explanations for this—while occupational pension schemes exist, they are optional and participation is low. Spain also has a low fertility rate, which means their worker-to-retiree ratio is expected to decrease.

Steps Towards a Better System

All countries have room for improvement—even the highest-ranking ones. Some general recommendations from MMGPI on how to build a better pension system include:

  • Increasing the age of retirement: Helps maintain a more balanced worker-to-retiree ratio.
  • Enforcing mandatory occupational schemes: Makes employers obligated to provide pension plans for their employees.
  • Limiting access to benefits: Prevents people from dipping into their savings preemptively, thus preserving funds until retirement.
  • Establishing strong pension assets to fund future liabilities: Ideally, these assets are more than 100% of a country’s GDP.
  • Pension systems across the globe are under an increasing amount of pressure. It’s time for countries to take a hard look at their pension systems to make sure they’re ready to support their aging population.

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Markets

The Population of China in Perspective

China is the world’s most populous country. But how does the population of China compare to the rest of the world?

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population of china

The Population of China in Perspective

China is the world’s most populous country with an astounding 1.44 billion citizens. Altogether, the size of the population of China is larger than nearly four regions combined: South America, Europe (excluding Russia), the U.S. & Canada, and Australia & New Zealand.

Using data from the United Nations, this unconventional map reveals the comparative size of China’s population next to a multitude of other countries.

Note: To keep the visualization easy to read, we’ve simplified the shapes representing countries. For example, although we’ve included Alaska and Hawaii in U.S. population totals, the U.S. is represented by the contiguous states map only.

A Historical Perspective

Looking at history, the population of China has more than doubled since the 1950s. The country was the first in the world to hit one billion people in 1980.

However, in 1979, in an attempt to control the burgeoning population, the infamous one-child policy was introduced, putting controls on how many children Chinese citizens could have.

While the government eventually recognized the negative implications of this policy, it appeared to be too little, too late. The two-child policy was introduced in 2016, but it has not yet reversed the current slowdown in population growth.

YearChina's Population (Millions)Annual Rate of Growth (%)Median AgeFertility Rate
1955612.22.00%22.26.11
1960660.41.53%21.35.48
1965724.21.86%19.86.15
1970827.62.70%19.36.30
1975926.22.28%20.34.85
19801,000.11.55%21.93.01
19851,075.61.47%23.52.52
19901,176.91.82%24.92.73
19951,240.91.07%27.41.83
20001,290.60.79%30.01.62
20051,330.80.62%32.61.61
20101,368.80.57%35.01.62
20151,406.80.55%36.71.64
20161,414.00.51%37.01.65
20171,421.00.49%37.01.65
20181,427.60.47%37.01.65
20191,433.80.43%37.01.65
20201,439.30.39%38.41.69

The fertility rate has been consistently falling from over 6 births per woman in 1955 to 1.69 in 2020. Today, the median age in China is 38 years old, rising from 22 in 1955. Longer life spans and fewer births form a demographic trend that has many social and economic implications.

Overall, China’s young population is becoming scarcer, meaning that the domestic labor market will eventually begin shrinking. Additionally, the larger share of elderly citizens will require publicly-funded resources, resulting in a heavier societal and financial burden.

Strength in Numbers

Despite these trends, however, China’s current population remains massive, constituting almost 20% of the world’s total population. Right now 71% of the Chinese population is between the ages of 15 and 65 years old, meaning that the labor supply is still immense.

Here are the populations of 65 countries from various regions of the world—and added together, you’ll see they still fall short of the population of China:

CountryPopulation Region
🇺🇸 U.S.331,002,651North America
🇨🇦 Canada37,742,154North America
🇧🇷 Brazil212,559,417South America
🇨🇴 Colombia50,882,891South America
🇦🇷 Argentina45,195,774South America
🇵🇪 Peru32,971,854South America
🇻🇪 Venezuela28,435,940South America
🇨🇱 Chile19,116,201South America
🇪🇨 Ecuador17,643,054South America
🇧🇴 Bolivia11,673,021South America
🇵🇾 Paraguay7,132,538South America
🇺🇾 Uruguay3,473,730South America
🇬🇾 Guyana786,552South America
🇸🇷 Suriname586,632South America
🇬🇫 French Guyana298,682South America
🇫🇰 Falkland Islands3,480South America
🇦🇺 Australia25,499,884Oceania
🇳🇿 New Zealand4,822,233Oceania
🇩🇪 Germany83,783,942Europe
🇫🇷 France65,273,511Europe
🇳🇱 Netherlands17,134,872Europe
🇧🇪 Belgium11,589,623Europe
🇦🇹 Austria9,006,398Europe
🇨🇭 Switzerland8,654,622Europe
🇱🇺 Luxembourg625,978Europe
🇲🇨 Monaco39,242Europe
🇱🇮 Liechtenstein38,128Europe
🇮🇹 Italy60,461,826Europe
🇪🇸 Spain46,754,778Europe
🇬🇷 Greece10,423,054Europe
🇵🇹 Portugal10,196,709Europe
🇷🇸 Serbia8,737,371Europe
🇭🇷 Croatia4,105,267Europe
🇧🇦 Bosnia and Herzegovina3,280,819Europe
🇦🇱 Albania2,877,797Europe
🇲🇰 North Macedonia2,083,374Europe
🇸🇮 Slovenia2,078,938Europe
🇲🇪 Montenegro628,066Europe
🇲🇹 Malta441,543Europe
🇦🇩 Andorra77,265Europe
🇸🇲 San Marino33,931Europe
🇬🇮 Gibraltar33,691Europe
🇻🇦 Vatican City801Europe
🇬🇧 United Kingdom67,886,011Europe
🇸🇪 Sweden10,099,265Europe
🇩🇰 Denmark5,792,202Europe
🇫🇮 Finland5,540,720Europe
🇳🇴 Norway5,421,241Europe
🇮🇪 Ireland4,937,786Europe
🇱🇹 Lithuania2,722,289Europe
🇱🇻 Latvia1,886,198Europe
🇪🇪 Estonia1,326,535Europe
🇮🇸 Iceland341,243Europe
Channel Islands173,863Europe
🇮🇲 Isle of Man85,033Europe
🇫🇴 Faroe Islands48,863Europe
🇺🇦 Ukraine43,733,762Europe
🇵🇱 Poland37,846,611Europe
🇷🇴 Romania19,237,691Europe
🇨🇿 Czechia10,708,981Europe
🇭🇺 Hungary9,660,351Europe
🇧🇾 Belarus9,449,323Europe
🇧🇬 Bulgaria6,948,445Europe
🇸🇰 Slovakia5,459,642Europe
🇲🇩 Moldova4,033,963Europe
Total1,431,528,252

To break it down even further, here’s a look at the population of each of the regions listed above:

  • Australia and New Zealand: 30.3 million
  • Europe (excluding Russia): 601.7 million
  • South America: 430.8 million
  • The U.S. and Canada: 368.7 million

Combined their population is 1.432 billion compared to China’s 1.439 billion.

Overall, the population of China has few comparables. India is one exception, with a population of 1.38 billion. As a continent, Africa comes in close as well at 1.34 billion people. Here’s a breakdown of Africa’s population for further comparison.

CountryPopulation Region
🇳🇬 Nigeria206,139,589Africa
🇬🇭 Ghana31,072,940Africa
🇨🇮 Côte d'Ivoire26,378,274Africa
🇳🇪 Niger24,206,644Africa
🇧🇫 Burkina Faso20,903,273Africa
🇲🇱 Mali20,250,833Africa
🇸🇳 Senegal16,743,927Africa
🇬🇳 Guinea13,132,795Africa
🇧🇯 Benin12,123,200Africa
🇹🇬 Togo8,278,724Africa
🇸🇱 Sierra Leone7,976,983Africa
🇱🇷 Liberia5,057,681Africa
🇲🇷 Mauritania4,649,658Africa
🇬🇲 Gambia2,416,668Africa
🇬🇼 Guinea-Bissau1,968,001Africa
🇨🇻 Cabo Verde555,987Africa
🇸🇭 Saint Helena6,077Africa
🇿🇦 South Africa59,308,690Africa
🇳🇦 Namibia2,540,905Africa
🇧🇼 Botswana2,351,627Africa
🇱🇸 Lesotho2,142,249Africa
🇸🇿 Eswatini1,160,164Africa
🇪🇬 Egypt102,334,404Africa
🇩🇿 Algeria43,851,044Africa
🇸🇩 Sudan43,849,260Africa
🇲🇦 Morocco36,910,560Africa
🇹🇳 Tunisia11,818,619Africa
🇱🇾 Libya6,871,292Africa
🇪🇭 Western Sahara597,339Africa
🇨🇩 Democratic Republic of the Congo89,561,403Africa
🇦🇴 Angola32,866,272Africa
🇨🇲 Cameroon26,545,863Africa
🇹🇩 Chad16,425,864Africa
🇨🇬 Congo5,518,087Africa
🇨🇫 Central African Republic4,829,767Africa
🇬🇦 Gabon2,225,734Africa
🇬🇶 Equatorial Guinea1,402,985Africa
🇸🇹 Sao Tome and Principe219,159Africa
🇪🇹 Ethiopia114,963,588Africa
🇹🇿 Tanzania59,734,218Africa
🇰🇪 Kenya53,771,296Africa
🇺🇬 Uganda45,741,007Africa
🇲🇿 Mozambique31,255,435Africa
🇲🇬 Madagascar27,691,018Africa
🇲🇼 Malawi19,129,952Africa
🇿🇲 Zambia18,383,955Africa
🇸🇴 Somalia15,893,222Africa
🇿🇼 Zimbabwe14,862,924Africa
🇷🇼 Rwanda12,952,218Africa
🇧🇮 Burundi11,890,784Africa
🇸🇸 South Sudan11,193,725Africa
🇪🇷 Eritrea3,546,421Africa
🇲🇺 Mauritius1,271,768Africa
🇩🇯 Djibouti988,000Africa
🇷🇪 Réunion895,312Africa
🇰🇲 Comoros869,601Africa
🇾🇹 Mayotte272,815Africa
🇸🇨 Seychelles98,347Africa
Total1,340,598,147

Future Outlook on the Population of China

Whether or not China’s population growth is slowing appears to be less relevant when looking at its sheer size. While India is expected to match the country’s population by 2026, China will remain one of the world’s largest economic powerhouses regardless.

It is estimated, however, that the population of China will drop below one billion people by the year 2100—bumping the nation to third place in the ranking of the world’s most populous countries. At the same time, it’s possible that China’s economic dominance may be challenged by these same demographic tailwinds as time moves forward.

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Mining

How to Avoid Common Mistakes With Mining Stocks (Part 5: Funding Strength)

A mining company’s past projects and funding strength are interlinked. This infographic outlines how a company’s ability to raise capital can determine the fate of a mining stock.

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Funding Strength

A mining company’s past projects and funding strength are interlinked, and can provide clues as to its potential success.

A good track record can provide better opportunities to raise capital, but the company must still ensure it times its financing with the market, protects its shareholders, and demonstrates value creation from the funding it receives.

Part 5: The Role of Funding Strength

We’ve partnered with Eclipse Gold Mining on an infographic series to show you how to avoid common mistakes when evaluating and investing in mining exploration stocks.

Part 5 of the series highlights six things to keep in mind when analyzing a company’s project history and funding ability.

Funding Strength

View all five parts of the series:

Part 5: Raising Capital and Funding Strength

So what must investors evaluate when it comes to funding strength?

Here are six important areas to cover.

1. Past Project Success: Veteran vs. Recruit

A history of success in mining helps to attract capital from knowledgeable investors. Having an experienced team provides confidence and opens up opportunities to raise additional capital on more favorable terms.

Veteran:

  • A team with past experience and success in similar projects
  • A history of past projects creating value for shareholders
  • A clear understanding of the building blocks of a successful project

A company with successful past projects instills confidence in investors and indicates the company knows how to make future projects successful, as well.

2. Well-balanced Financing: Shareholder Friendly vs. Banker Friendly

Companies need to balance between large investors and protecting retail shareholders. Management with skin in the game ensures they find a balance between serving the interests of both of these unique groups.

Shareholder Friendly:

  • Clear communication with shareholders regarding the company’s financing plans
  • High levels of insider ownership ensures management has faith in the company’s direction, and is less likely to make decisions which hurt shareholders
  • Share dilution is done in a limited capacity and only when it helps finance new projects that will create more value for shareholders

Mining companies need to find a balance between keeping their current shareholders happy while also offering attractive financing options to attract further investors.

3. A Liquid Stock: Hot Spot vs. Ghost Town

Lack of liquidity in a stock can be a major problem when it comes to attracting investment. It can limit investments from bigger players like funds and savvy investors. Investors prefer liquid stocks that are easily traded, as this allows them to capitalize on market trends.

Hot Spot:

  • A liquid stock ensures shareholders are able to buy and sell shares at their expected price
  • More liquid stocks often trade at better valuations than their illiquid counterparts
  • High liquidity can help avoid price crashes during times of market instability

Liquidity makes all the difference when it comes to attracting investors and ensuring they’re comfortable holding a company’s stock.

4. Timing the Market: On Time vs. Too Late or Too Early

Raising capital at the wrong time can result in little interest from investors. Companies in tune with market cycles can raise capital to capture rising interest in the commodity they’re mining.

Being On Time:

  • Raising capital near the start of a commodity’s bull market can attract interest from speculators looking to capitalize on price trends
  • If timed well, the attention around a commodity can attract investors
  • Well-timed financing will instill confidence in shareholders, who will be more likely to hold onto their stock
  • Raising capital at the right time during bull markets is less expensive for the company and reduces risk for investors

Companies need to time when they raise capital in order to maximize the amount raised.

5. Where is the Money Going? Money Well Spent vs. Well Wasted

How a company spends its money plays a crucial role in whether the company is generating more value or just keeping the lights on. Investors should always try to determine if management is simply in it for a quick buck, or if they truly believe in their projects and the quality of the ore the company is mining.

Money Well Spent:

  • Raised capital goes towards expanding projects and operations
  • Efficient use of capital can increase revenue and keep shareholders happy with dividend hikes and share buybacks
  • By showing tangible results from previous investments, a company can more easily raise capital in the future

Raised capital needs to be allocated wisely in order to support projects and generate value for shareholders.

6. Additional Capital: Back for More vs. Tapped Out

Mining is a capital intensive process, and unless the company has access to a treasure trove, funding is crucial to advancing any project. Companies that demonstrate consistency in their ability to create value at every stage will find it easier to raise capital when it’s necessary.

Back For More:

  • Raise more capital when necessary to fund further development on a project
  • Able to show the value they generated from previous funding when looking to raise capital a second time
  • Attract future shareholders easily by treating current shareholders well

Every mining project requires numerous financings. However, if management proves they spend capital in a way that creates value, investors will likely offer more funding during difficult or unexpected times.

Wealth Creation and Funding Strength

Mining companies that develop significant assets can create massive amounts of wealth, but often the company will not see cash flow for years. This is why it is so important to have funding strength: an ability to raise capital and build value to harvest later.

It is a challenging process to build a mining company, but management that has the ability to treat their shareholders and raise money can see their dreams built.

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