Wednesday, 11 July 2012

10 Countries Paying Fortune in Pension


The world is going through tough economic times and some countries are taking extreme measures to reduce debt and bring the budget in order, but most continue to face rising expenditure.

Let's take a look at 10 nations that are paying fortune in pension:

Greece

Tourists sit on a hill overlooking Athens outside the archaeological site of the Acropolis.

- Pension Replacement Rate: 95.7 per cent
- Male/Female Retirement Age: 57/57
- Male/Female Life Expectancy: 80.9/ 84.2
- Sovereign Debt as percentage of GDP: 147.8 per cent
- Employment Rate: 58.5 per cent

"Greece's public employees get a pretty sweet deal. They get to enjoy nearly a full salary for life beginning at age 57"

Luxembourg

A view of the city of Luxembourg.

- Pension Replacement Rate: 87.4 per cent
- Male/Female Retirement Age: 60/60
- Male/Female Life Expectancy: 80.9/84.7
- Sovereign Debt as percentage of GDP: 12.6 per cent
- Employment Rate: 65.3 per cent

"In Luxembourg, once reaching the age of 60, citizens making the median income can begin drawing 87.4 per cent of their income. Meanwhile, for those making only half the median income, they can take home 97.9 per cent of their salary by age 60."

Spain

Torre Iberdrola is seen from the Guggenheim Museum in Bilbao, Spain. The 165-metre glass-clad skyscraper is Bilbao's tallest building.

- Pension Replacement Rate: 81.2 per cent
- Male/Female Retirement Age: 65/65
- Male/Female Life Expectancy: 83/86.1
- Sovereign Debt as percentage of GDP: 51.7 per cent
- Employment Rate: 58.4 per cent

"Despite Spain's significant economic woes, the country manages to pay out a sizable pension to employees. Spain's pension pays 81.2 per cent of the salary for those making the median income, half the median income and one-and-a-half times the median income"

Austria

People enjoy the evening at Donaukanal in the centre of Vienna.

- Pension Replacement Rate: 76.6 per cent
- Male/Female Retirement Age: 65/60
- Male/Female Life Expectancy: 82.5/85.4
- Sovereign Debt as percentage of GDP: 65.8 per cent
- Employment Rate: 72.2 per cent

"Those making the median income in government can receive more than three-quarters of their salary following retirement."

"That is an especially good deal for women, who are expected to live for more than 25 years after retiring at 60."

Italy

A view of Priori Palace and Maggiore fountain in downtown Perugia, Italy.

- Pension Replacement Rate: 64.5 per cent
- Male/Female Retirement Age: 59/59
- Male/Female Life Expectancy: 82/86.1
- Sovereign Debt as percentage of GDP: 109 per cent
- Employment Rate: 56.9 per cent

"Italians can receive a cushy pension at quite an early age. At age 59, an employee making the median income - along with those making half and one-and-a-half times the median income - can begin receiving a pension paying out 64.5 per cent of an individual's salary."

Turkey

Istanbul's financial district, Levent district, which comprises of leading Turkish companies' headquarters and popular shopping malls, is seen from the observation deck of Sapphire Tower in Istanbul.

- Pension Replacement Rate: 64.5 per cent
- Male/Female Retirement Age: 44.9/41.0
- Male/Female Life Expectancy: 75/78.8
- Sovereign Debt as percentage of GDP: 42.9 per cent
- Employment Rate: 46.8 per cent
"The retirement age above isn't a typo - men retire at 44.9 in Turkey and women at 41. Despite the early retirement age, the country still pays out 64.5 per cent of a person's salary for retirement, which on average lasts for more than 30 years for men and nearly 38 years for women."

Slovenia
River Ljubljanica float near closed market in old part of Ljubljana, Slovenia.

- Pension Replacement Rate: 62.4 per cent

- Male/Female Retirement Age: 63/61
- Male/Female Life Expectancy: 80.3/84.9
- Sovereign Debt as percentage of GDP: 36 per cent
- Employment Rate: 65.8 per cent"In Slovenia, men can retire at 63 and women at 61. When they retire, Slovenians are paid 62.4 per cent of their salaries. It gets even better after taxes, where the net pension replacement rate is as high as 85.4 per cent for workers making the median income."

Finland
Tourists take part in the reindeer safari at Arctic Circle near Rovaniemi, Finland.

- Pension Replacement Rate: 57.8 per cent

- Male/Female Retirement Age: 65/65
- Male/Female Life Expectancy: 82.4/86.1
- Sovereign Debt as percentage of GDP: 41.7 per cent
- Employment Rate: 68.4 per cent
The retirement age for both men and women in Finland is also 65, but retirees get 57.8 per cent of their income prior to retirement.

"Finland currently pays out 12 per cent of its GDP in public pensions, which is the sixth highest out of the 31 countries for which the OECD has data and well higher than the OECD average of 8.4 per cent."


Portugal


People enjoy the view along the Douro river in Porto, Portugal.

- Pension Replacement Rate: 53.9 per cent
- Male/Female Retirement Age: 65/65
- Male/Female Life Expectancy: 83/85.3
- Sovereign Debt as percentage of GDP: 88 per cent
- Employment Rate: 65.2 per cent
"In Portugal, both men and women retire at 65, an old retirement age compared to the majority of countries on the list. But at retirement, the pension replacement rate is 53.9 per cent for median income workers, and that number rises to 69.2 per cent after taking into account tax benefits"


Czech Republic

People ride on their boats on Vltava river through the medieval city of Cesky Krumlov, 160km south from Prague, Czech Republic.

- Pension Replacement Rate: 50.2 per cent

- Male/Female Retirement Age: 61/58.7
- Male/Female Life Expectancy: 79/81.8
- Sovereign Debt as percentage of GDP: 36.6 per cent
- Employment Rate: 65.3 per cent
"The Czech Republic manages to pay 61 years old males with a median income more than half his salary prior to retirement. The deal gets even better for women, whose retirement age of 58.7 is the fourth lowest of all of the countries measured by the OECD."

Source: http://www.rediff.com/   

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