Dutch Do Pensions Right

The US should read up on Social Security in the Netherlands, reports Time
By Dustin Lushing,  Newser Staff
Posted Jun 15, 2007 2:00 PM CDT
The trust funds for Social Security and Medicare will last a year longer than previously estimated, trustees said Monday. That means 2041 for the Social Security trust fund to be exhausted and 2019 for...   (Associated Press)
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(Newser) – Governments around the world are stuck between tightfisted Anglo-American pension plans that pay only a fraction of one's past salary, and extravagant European-style social security that ends up welshing on the payments. But the Dutch have struck a balance that's working, reports Time, as sufficient amounts of money are saved up and invested skillfully.

Retirees in the US receive a pension worth 52.4% of their working income, while in the Netherlands they receive 96.8%. The Dutch enjoy a cushy retirement because companies are compelled to add to retirement accounts, which protects from underfunding. And businesses are shielded from bear markets because fund members share the risk of an economic disaster.