PHL retirement income system lags in the world

Asia's Tech News Daily

© Provided by BusinessWorld The country’s retirement income system is based on a small basic pension and an earnings-related Social Security System. — PHILIPPINE STAR/ MICHAEL VARCAS
© Provided by BusinessWorld The country’s retirement income system is based on a small basic pension and an earnings-related Social Security System. — PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINE retirement income system is ranked the second lowest in Asia and near the bottom of a Global Pension Index covering 43 economies, after a slowdown in economic growth.

The Mercer CFA Institute Global Pension Index 2021 released on Tuesday said the Philippines ranked 41st out of 43 economies, after its overall index value dropped to 42.7 this year from 43 last year.

The Philippines ranked 36th out of 39 economies last year.

© Provided by BusinessWorld Philippines’ pension system ranked the third lowest

Out of the 11 Asian countries in the index, the Philippines had the second- lowest score, ahead only of Thailand.  Singapore, Hong Kong and Malaysia are the top three retirement systems in Asia.

The Global Pension Index assesses retirement systems through three weighted sub-indices: adequacy, sustainability, and integrity. The study showed that Iceland, the Netherlands, and Denmark have the best pension systems.

The Philippines’ highest score was sustainability at 52.5, which was lower than the 53.4 last year but higher than the Asia average at 48.1. The country ranked 19th globally in this sub-index.

Sustainability measures pension coverage, total assets, demography, public expenditure, government debt, and economic growth.

The country’s adequacy score was unchanged at 38.9, where it ranked 41st globally. This sub-index measures benefits, savings, government support, and home ownership, along with system design and growth assets.

The Philippines ranked 43rd in integrity with a score of 35, up slightly from last year’s 34.8, but still the lowest in the world. The integrity sub-index includes factors that may affect the confidence level in the retirement system.

The country’s retirement income system is based on a small basic pension and an earnings-related Social Security System.

“Although there was a slight increase in the integrity score this year, there is still room for improvement. The voluntary direct compensation scheme needs to be reinforced and reinvigorated, while the government has to start looking at ‘no cash-out’ options to preserve savings and benefits for employees when they retire,” Mercer Wealth Business Leader in the Philippines Harold Tan said in a statement.

The Philippines should also improve the governance requirements of the private pension system.

“In addition, investment of pension assets is not sufficiently diversified outside of the Philippines and hence, return-risk ratios are not fully optimized across a larger and more prosperous financial market. All of these factors can help to build confidence and improve the Philippines’ overall index value,”

Mercer said the country’s overall index value could increase if the minimum level of support for the poorest aged individuals is increased.

Francis Adrian Viernes, CFA Institute Asia-Pacific Research Exchange’s Engagement Committee chair, said the Philippines should account for longer life expectancies and make sure there are enough pension savings to see retirees through more years in retirement.

“Compounding the issue, the gender pension gap presents additional and urgent challenges, with women facing their retirement years with fewer benefits,” he said.

The Philippines kept its D-grade, which means it is a pension system that has “some desirable features but its efficacy and sustainability are in doubt if major weaknesses or omissions are not addressed.” This is the same grade as other Asian countries such as India, Japan, South Korea and Thailand. — Jenina P. Ibañez

PHILIPPINE STAR/ MICHAEL VARCAS

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Woche des Wechsels: So soll der Start der neuen Regierung ablaufen

© Keystone/dpa/Christoph Soeder Nach dem Ja von SPD und FDP bleibt nur noch eine Hürde auf dem Weg zur ersten Ampel-Koalition auf Bundesebene übrig: An diesem Montag wird das Votum ... Read more »

China will Litauen «wie eine Fliege zerquetschen»

Der chinesische Zoll hat den baltischen Staat aus der offiziellen Zolldatenbank gelöscht. Der Handel zwischen den beiden Ländern ist nun zum Erliegen gekommen. Eine Strafaktion und ein Präzedenzfall © Foto: ... Read more »

Blick Winter Awards: Wir suchen die schönsten Schweizer Skigebiete

Gemeinsam mit Schweiz Tourismus kürt Blick diesen Winter die attraktivsten Skigebiete des Landes. Die Blick-Community kann ab sofort darüber abstimmen, welche Destinationen einen Blick Winter Award erhalten. © Bereitgestellt von ... Read more »

«Grenfell-Community hat Besseres verdient»

Eine Firma, die mit dem tödlichen Feuer im Londoner Grenfell Tower in Verbindung steht, sponsert nun das Mercedes-Rennauto von Lewis Hamilton. Überlebende der Brandkatastrophe sind empört. © Foto: Andy Rain ... Read more »

Nach dem Aus von Dieter Bohlen bei „DSDS“: Statement vom Pop-Titan macht seine Fans glücklich! Plant Bohlen jetzt DAS?

© Bereitgestellt von Berliner Kurier Monate ist es her, dass Pop-Titan Dieter Bohlen aus der Jury von „Deutschland sucht den Superstar“ („DSDS“) flog – und doch macht der Ex-„Modern Talking“-Star ... Read more »

Schweizer Krypto-Briefmarke für 37'500 Franken verkauft

Diashow ein Die Swiss Crypto Stamp in physischer Form: Mit dem QR-Code wird der digitale Zwilling der Briefmarke freigeschaltet. Es gibt 65’000 von dem häufigsten digitalen Sujet, aber nur 50 ... Read more »

Swiss International cuts Hong Kong flights over quarantine rules

© Provided by Al Jazeera Hong mandates 14-21 days of hotel quarantine for almost all arrivals, whether or not they are vaccinated [File: Tyrone Siu/Reuters] Swiss International Air Lines has ... Read more »

Deadly Indonesian volcano eruption sparks evacuations

Ten people trapped after Indonesia’s Semeru volcano erupted have been evacuated to safety, the disaster mitigation agency (BNPB) said on Sunday, as the death toll from the disaster climbed to ... Read more »

Jacob Rees-Mogg is using his pious image to con us

Jacob Rees-Mogg’s mask keeps slipping. I don’t mean the literal mask he uncharacteristically wore at prime minister’s questions last week. I mean the metaphorical one behind it. It needs new ... Read more »

Bruce Campbell On No Longer Playing Evil Dead's Ash And How Sam Raimi's Franchise Will Continue

There’s some good news, and there’s some not-so-good news for B-movie horror fans, as Bruce Campbell talks Evil Dead. The good is that there’s another addition to the Evil Dead ... Read more »

Covid news live: Omicron found in one-third of US states but early reports on severity are ‘encouraging', Fauci says

LIVE – Updated at 01:57 © Photograph: Robyn Beck/AFP/Getty Images Shoppers wear protective face masks at an outdoor shopping mall in Glendale, California, on 1 December as one-third of US ... Read more »

Benarkan pemerhati pilihan raya masuk Sarawak, SPR diberitahu

© Provided by Free Malaysia Today Kerajaan sepatutnya menggalakkan penyertaan daripada orang awam bagi memastikan pilihan raya lebih adil dan telus, kata Pengerusi Bersih Sarawak Ann Teo. KUCHING: Suruhanjaya Pilihan ... Read more »

Omicron COVID-19 cases rise by over 50% across UK in just one day

© Provided by Zee News London: A further 86 cases of the Omicron COVID variant have been reported in Britain, taking the total to 246, British health authorities confirmed Sunday ... Read more »

Japan's tougher virus border controls boost support for PM, poll shows

TOKYO (Reuters) – Japanese voters’ support for Prime Minister Fumio Kishida ticked up after his government enforced tighter border controls against the Omicron variant of coronavirus, the Yomiuri Shimbun daily ... Read more »

Billie Eilish Teams Up With Gucci For Limited-Edition ‘Happier Than Ever' Recycled Vinyl

Billie Eilish Billie Eilish has teamed with fashion house Gucci for a limited-edition vinyl version of her Happier Than Ever album. The singer announced the project on Thursday (Dec. 2), ... Read more »

MOM: Non-Malaysian work permit or S pass holders in CMP sectors can no longer enter S'pore via VLT

© The Independent Singapore Singapore — Beginning at 11:59 pm on Saturday (Dec 4), employers of S Pass and work permit holders in the construction, marine shipyard and processes sector ... Read more »

Where to collect gem fragments outside Seven Vaults for the Shanta Quests in Fortnite Chapter 3 Season 1

© Provided by GamePur One of the first set of objectives one will run into in Fortnite’s Chapter 3 Season 1 is the Shanta Quests, where a majority of the ... Read more »

Suspect arrested, charged in connection to deadly shooting in West Price Hill Saturday

One suspect has been arrested in connection to the death of a man in West Price Hill Saturday, Cincinnati Police said. At approximately 5:11 p.m. Saturday, police responded to reports ... Read more »

Thieves hit another Ulta store in latest mass theft, this time targeting one in Clovis

A man and woman quickly made off with $2,000 or more in fragrances Sunday afternoon from an Ulta Beauty store in Clovis, police said, the second time the chain has ... Read more »

Asian markets today: Investors make cautious bid as Omicron spreads, US rate hike fear looms

© Provided by CNBCTV18 Ahead of Fed policy rate decisions, Asian Markets started off mixed on Monday as Omicron variant of the Coronavirus was detected in more countries. Early trade ... Read more »

Lost your PAN Card? You can get your pan card online - Check Step-by-step guide here

© Provided by DNA PAN card or Permanent Account Number is an important document for all types of financial transactions. It comes with a 10 digit alphanumeric PAN number. No ... Read more »

As COO Rao retires, Infy drops role & splits tasks

© Provided by The Times of India Bengaluru: With a week to go for Infosys COO Pravin Rao to retire, the company has decided to do away with the role, ... Read more »

Adopt blockchain tech for e-governance: Meity report

© Provided by The Times of India NEW DELHI: Amid the debate over the fate of cryptocurrencies in the country, a government document has recommended the setting up of a ... Read more »

D-Street Diary: Small is beautiful for IPOs, DMart F&'No'

© Provided by CNBCTV18 Like with the economy, it is appears to be a K-shaped trend in the market for initial public offerings (IPOs) of late. But with a difference. ... Read more »

Send a WhatsApp message to 250 users at once without making a group - Here's how

© Provided by DNA WhatsApp is India’s most widely used messaging app and is used for personal as well as professional communication by people. The app has upgraded itself over ... Read more »

British couple facing £4,000 quarantine bill launch legal action

© Provided by Daily Mail MailOnline logo A legal challenge that argues coronavirus hotel quarantine is a ‘fundamental breach of human rights’ has been mounted this week. People entering the ... Read more »

Strictly's Sara Davies' husband is loving her new stamina

Sara Davies‘ husband is loving her newfound stamina credit:Bang Showbiz Sara Davies' husband is loving the stamina she has since she competed on 'Strictly Come Dancing'. The 37-year-old businesswoman and ... Read more »

The Zoey's Extraordinary Playlist Cameo That Almost Happened After The Christmas Movie's End Credits

© Provided by CinemaBlend jane levy zoey’s extraordinary christmas Spoilers ahead for Zoey’s Extraordinary Christmas! Read at your own risk. Zoey’s Extraordinary Christmas, the heartwarming holiday conclusion movie to the ... Read more »

Australia news live: Morrison says Labor climate policy an ‘opening bid' and Greens will seek more; Palaszczuk to give update on Qld border reopening

LIVE – Updated at 01:37 Follow all the day’s news.   01:37 So Bowen has begun by bemoaning the history of discourse around climate change in Australia: For many years, ... Read more »

Footjoy Women's Hydroknit Jacket Review

© Provided by Golf Monthly Moves with you when you swing The clue is in the name, Hydroknit. 2.5 layers of wet-weather repellent fabric are knitted together to bead moisture ... Read more »

PM Narendra Modi, Vladimir Putin to meet today; spotlight on India-Russia 'Special and Privileged Strategic Partnership'

© Provided by Zee News New Delhi: Prime Minister Narendra Modi on Monday (December 6, 2021) will host Russian President Vladimir Putin for the 21st India-Russia Annual Summit in New ... Read more »

Mohali police to fine those not wearing masks from today

© Provided by The Indian Express The district administration has decided to issue the challans to those not wearing face masks, Monday onwards. The decision was taken apprehending the increase ... Read more »

Man booked for assaulting, sexually harassing woman in Kharar

© Provided by The Indian Express Kharar police booked a Bassi Pathana resident for allegedly beating two women with stones and sexually harassing them. The accused has not yet been ... Read more »

Cotabato traders require jab card for entry

MIDSAYAP, North Cotabato: Large business establishments in Kidapawan City, North Cotabato, simultaneously posted tarpaulins last Friday, indicating that customers must present their vaccination cards upon entry. This was done in ... Read more »

Sagada opens, allows 300 tourists daily

© The Manila Times HANGING COFFINS – The ancestors of Sagada folk are either buried in caves like Lumyang and Sugong. Coffins are also hung on a mountainside like those ... Read more »

Palace to employers: Be lenient on workers

MALACAÑANG reminded employers to be lenient to workers due for vaccination and not mark them as absent on the day they will get their shot. Acting Palace spokesman and Cabinet ... Read more »

Pacquiao launches esports squad

© Ted Aljibe / AFP Pacquiao launches esports squad MANILA, Philippines — Boxing icon, Sen. Manny Pacquiao broke new ground over the weekend by launching his own esports team in ... Read more »

US averaging 100,000 new Covid infections a day for first time in months

Daily Covid cases in the United States have risen to their highest level in more than two months as scientists race to track the spread of the new omicron variant. ... Read more »

Doctor Who: Jodie Whittaker worried she'd ‘ruined' the chance of another female actor playing the Doctor

Jodie Whittaker has admitted that she feared her casting in Doctor Who would “ruin” the chances of another female actor getting the role. The Broadchurch star took over the role ... Read more »

Dole mastered the caustic wisecrack, often against himself

1 / 2Obit Bob DoleFILE – Republican presidential candidate Sen. Robert Dole R-Kan., gestures while making a speech in Washington, March 28, 1988. Bob Dole, who overcame disabling war wounds ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic