It is never too early or too late to start planning for your financial future

Use our pension gap calculator to find out how much you need to save.

17 Oct 2017

People often don't think about retirement until they are nearing the end of their working life. But our analysis shows that relying purely on mandatory pension systems no longer makes sense, as they only insure a minimum income to cover basic needs in old age. No matter where in the world you live, you are likely to face a pension gap – in other words, your costs will exceed your retirement "income".

So what can you do? In short - start saving for retirement as early as you can.

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Calculate it: How much do you need to save?

Use the tool below to find out what your pension gap is, based on your income and lifestyle preferences.

What lifestyle are you aiming for?


Preparing for retirement: a 50-year-old Jane across the world

In order to compare pension gaps globally, we calculated the retirement income and costs of a representative 50-year-old "Average Jane" in different cities.

Jane earns a median full–time wage and enjoys a basic urban lifestyle. She has had a good life but has not saved for anything more than a rainy day until now. At age 50, she still has at least 10 years of work left before she retires. We found that no matter where the representative Jane lives, the mandatory pension system will not provide her with enough income to lean back and relax. To close the pension gap, Jane would need to start saving a certain percentage of her income each month. Below is a city comparison.

Jane's retirement income is influenced by three global trends that affect pension systems worldwide in one way or another: demographic change, public finances and low interest rates. Below we list some city highlights.

Zurich

Switzerland ranks highest on our pension gap index. It is one of the few countries with two mandatory pillars financed by workers and employers. But can it sustain the longest living population in Europe?

Tokyo

Japan has the highest life expectancy, and its pension plan is feeling the burden of an aging population. Will current reform measures suffice to meet future challenges?

Munich

Germany enacted reforms – like other European countries – and raised its retirement age to 67 as a consequence of an aging population. But there are still differences between the former East and West.

Milan

Italy introduced major reform, moving from a generous defined-benefit plan to a defined-contribution plan. Given high public debt, the former was no longer sustainable. Is this a role model for others?

Paris

France has more than 30 different pension schemes. Will President Emmanuel Macron be able to push for reform to unify them and decrease the administrative burden?

Sydney

Australia has an employer-based, defined-contribution plan, supported by a means-tested government pension. It is a lean and sustainable system. But what are the prospects it provides to its recipients?

Hong Kong

Hong Kong introduced a mandatory defined-contribution fund only in 2000, and exemplifies the impact of a late start to retirement planning.

Toronto

Canada has recently introduced reforms that will increase public pension payments. Is this sustainable?

Taipei

Taiwan has the lowest retirement age. Its example illustrates how working a few years longer can make a significant difference.


  • While it is never too late to start thinking about your pension, the earlier you start, the better your prospects for a secure and enjoyable retirement. Over the numerous years that you spend in the workforce and can save for retirement, the compound interest effect will be substantial.
  • As your savings grow, it's important to invest them in a smart and diversified way.
  • Don't forget about pension systems all together – many provide additional voluntary savings options, combined with tax incentives.