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Philippine pension system second worst globally: study

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Benise Balaoing, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Indigent senior citizens line up to receive social pension from the Department of Social Welfare and Development (DSWD) in Quezon City Hall on July 10, 2017. Mark Demayo, ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/news/10/14/20170710-senior-citizen-pension-md-10.jpg"/><figcaption>Indigent senior citizens line up to receive social pension from the Department of Social Welfare and Development (DSWD) in Quezon City Hall on July 10, 2017. Mark Demayo, ABS-CBN News/File</figcaption></figure></div>MANILA — The Philippines has the second worst retirement fund system out of 44 nations, according to the Mercer CFA Institute&#x27;s 2022 Global Pension Index (MCGPI). The country&#x27;s retirement income system ranked 43rd out of 44 nations, which represent 65 percent of the world&#x27;s population, according to the MCGPI released on Tuesday. It said the Philippines had an overall score of 42.0, slightly down from 42.7 last year, &quot;primarily due to some minor adjustments.&quot; This score is based on the weighted average for 3 categories, namely adequacy or amount of benefits given to seniors, sustainability or the level of real economic growth of the country, and integrity which concerns regulation and governance of the pension system.The Philippines scored 40.5 on adequacy, 52.3 on sustainability, and 30 on integrity. While the country&#x27;s retirement system has &quot;some desirable features,&quot; it also has &quot;major weaknesses and/or omissions that need to be addressed,&quot; said Mercer.&quot;Without these improvements, its efficacy and sustainability are in doubt,&quot; it added. The Philippine retirement system comprises a small basic pension and an earnings-related social security system, Mercer noted. &quot;Members can receive a lifetime pension if they have contributed for a minimum of 120 months. If this requirement is not met, the retiree will receive a lump sum upon retirement equal to the member and employer contributions, plus interest,&quot; it said. Mercer said the Philippines should increase the minimum level of support for the poorest aged individuals, and up the coverage of employees in occupational pension schemes to raise the level of contributions and assets.It also suggested the use of non-cash-out options for retirement plan proceeds to be preserved for retirement purposes, and improving the governance requirements for the private pension system. <figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2289401" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>The National Commission of Senior Citizens will take the MCGPI as a “challenge” to improve the life of retirees in the Philippines, said Commissioner Franklin Quijano. “This is a good challenge and I think we should all face this with a grain of salt. Nakikita natin na ano, na dapat gumawa ng mga hakbang. In fact, I am now starting to organize, kasi bago pa nga lang, 1 year plus pa lang yung organizational life ni National Commission on Senior Citizens,” he told TeleRadyo on Friday. (This is a good challenge and I think we should all face this with a grain of salt. We have seen that we should take steps and in fact I am now starting to organize, because National Commission on Senior Citizens is only one year old.)“Ang sunod kong hakbang eh to talk with the Philippine Retirement Authority kasi sila yung may mandate doon sa issue ng incentives doon sa retirement,” he added.(My next step is to talk with the Philippine Retirement Authority because they have the mandate with regards to retirement incentives.)Iceland, the Netherlands, and Denmark have the best retirement income systems, with each of them receiving an A-grade in 2022, according to the MCGPI. India came in last, it said. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/08/30/22/20-million-sss-members-may-retire-with-meager-pension">Over 20 million SSS members may retire with inadequate pension: official</a></li>	<li><a href="https://news.abs-cbn.com/spotlight/10/07/22/nearly-half-of-filipino-seniors-still-work-popcom">Almost half of elderly Filipinos still work: POPCOM</a></li></ul>

The Philippines has the second worst retirement pension system in the world, according to the Mercer CFA Institute's 2022 Global Pension Index. 

Philippine pension system second worst globally: study

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Philippine pension system second worst globally: study

Benise Balaoing,

ABS-CBN News

Published Oct 14, 2022 02:01 PM PHT

Read More:

Global Pension Index

retirement

retirees

pension system

pension

elderly

senior citizens

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