Did You Know Retirement Plans Differ by Country? Learn About Yours

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Over 180 countries provide some form of social security for retired workers but few pay enough to serve as a total replacement for earned income. Further, governments worldwide struggle with similar challenges in designing and updating their programs. These issues include inflation, rising life expectancy, and declining birth rates. 

The resulting shortfall has spurred many governments to increase the age at which citizens can receive money from social security plans in an effort to minimize the number of people in the system.

Here’s a look at retirement rules and benefits available to citizens around the globe.

The U.K.

In 2011, the U.K. government ended fixed retirement in the country, which means that employers can no longer force staff to quit simply because they are 65 or older. It has also increased the State Pension age, which used to be 60 for women and 65 for men, on a sliding scale that started in 2011. It is 66 for both men and women and it will increase to 67 between 2026 and 2028.

Workers in the U.K. can continue to work after they reach State Pension age and still receive their pension. They can also put off claiming their State Pension, which might make them eligible for extra State Pension funds or a lump-sum payment when they claim it.

Singapore

In Singapore, there is a statutory minimum retirement age, which is currently set at age 63. This means that an employer can require an employee to retire upon reaching that age and prohibits any employers from terminating an employee on the grounds of age before reaching age 63.

At the same time, Singapore also maintains a re-employment program, per the Retirement and Re-Employment Act. This act is intended to provide older workers with employment opportunities. Employers may be required to “re-employ” a retired worker up to the “maximum re-employment age,” which is currently set at 68 years of age.

In order to be eligible for re-employment, an employee must meet certain criteria:

• A Singapore citizen or permanent resident
• Worked for their employer for at least two years before reaching the minimum retirement age for employees hired at 55 or after
• Satisfactory work performance as assessed by the employer
• Medically fit to keep working

Under the Retirement and Re-Employment Act, the employee must be “re-employed” for at least one year (and the employment being renewable each year up to the “maximum re-employment age”).

Employees are not required to be “re-employed” if they choose not to be. However, an employer that is not able to provide a re-employment opportunity to one of their employees must make an Employment Assistance Payment (EAP) to the employee. This payment is generally 3.5 months’ salary.

The Singapore government implements a comprehensive social security savings plan called The Central Provident Fund (CFP). Under the plan, all working Singaporeans and their employers make monthly contributions to four CPF accounts. Savings in the Ordinary Account can only be used for specific expenditures such as investment, education, CPF insurance, or to purchase a home.

The Special Account is earmarked for a person’s elderly years and investments in retirement-related financial products. The Medisave Account can be used for medical expenses, such as hospitalization costs and approved medical insurance. Finally, the Retirement Account is automatically created when an employee turns 55 years old.

The government encourages retirees to supplement their CPF with personal savings. As of June 2024, the fund had 4.2 million members and a balance of $583 billion.

Malaysia

The Employees Provident Fund scheme provides for retirement through a mandatory savings account in which employees and employers make monthly contributions. Malaysia enforces a compulsory retirement age of 60 for all employees.

The retirement outlook for Malaysia is not strong due to its aging population. As of 2023, only 33% of members are expected to save RM 240,000 (approximately $50,000) by the time they retire.

United States

The age at which U.S. citizens are eligible for full retirement benefits ranges from 66 to 67, depending on their year of birth. Early retirement begins at 62 when people can begin receiving a fraction of their full retirement payout.

The Retirement Confidence Survey (RCS) for 2024 finds that only 21% of workers feel very confident about retirement while 47% feel somewhat confident.

Australia

The Australian social security program is called Age Pension. The government describes Age Pension as “an adequate income in your retirement.” To receive Age Pension you must be 67 years or older and meet the 10-year qualifying Australian residence requirements.

Income, assets, and other circumstances affect how much pension an Australian worker will get.

Australia has a relatively conservative and mandatory retirement saving system for its citizens, which requires them to put away 11.5% of their salaries every year into a private/public 401(k) called a superannuation account. This amount will be raised to 12% in July 2025.

Canada

In the wake of its first budget deficit since the mid-1990s, the Canadian government announced in 2012 a plan to raise the eligibility age for Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) from 65 years of age to 67 by 2029.

However, in 2015, the government of Canada restored the age of eligibility for OAS and GIS benefits from 67 back to 65 to help ensure future vulnerable elderly people do not face higher risks of living in poverty. Eligibility will remain at age 65 as part of an effort to guarantee that the elderly do not have to wait two additional years to collect their OAS and GIS benefits.

OAS is funded completely through government revenues as part of the country’s public pension system. Canadian citizens or permanent residents 65 and older who have lived in the country for at least 10 years are eligible for OAS. Pension increases per the number of years a person has lived in Canada.

The maximum payout if you are between 65 and 74 is CAD $727.67 a month but your annual world income must be less than CAD $148,451. If you are older than 74, then the maximum monthly payout is CAD $800.44, but your global income must be less than CAD $154,196.

The Bottom Line

Retirement is handled differently depending on where you live in the world, but it seems that most individuals and governments struggle with how to fund life after work. Your best bet is to take matters into your own hands. Don’t count on government programs to sustain you through your retirement.