The UK came in second bottom in research that compares state pensions payments to annual living costs around the world, according to figures by Sage ZA.
The global research compared average public pensions with the annual living costs per person in each country.
Sage ZA says it carried out the research as many of the pension systems today were created when life expectancy was not a dramatically growing number.
A spokesperson for Sage ZA said: “As part of our research, we wanted to discover how much a state pension offers per year in each country, and then subtract the average cost of living per person in those countries.
“Hong Kong proved to be the worst country in the world to rely on a state pension, with the UK coming in second to bottom with a net loss per year of over £4,100 (€4,574, $5,233) locally, with an average standard of life,” he said.
At the other end of the spectrum, the research shows that pensioners in Denmark have a surplus of £12,519 per year.
Private pensions need priority
The spokesperson said this data highlights the need for the majority of people to focus on investing in a private pension.
They said, as the landscape suggests, a public pension will not meet the needs of an average lifestyle today, let alone in 20 to 30 years’ time.
Living longer
The research further shows that the average global life expectancy is increasing by one year for every five years that go by.
This is increasing the number of people who will be dependent on the workforce to contribute to the economy, shifting from one retiree per eight workers today, to one retiree per four workers by 2050.
The ratio also changes dramatically from country to country, with Japan expected to have 78 people over 65 years old for every 100 people of working age.
South Africa, on the other hand, is at the opposite end of the scale, and although the number is growing, there will only be 18 people who are 65 and over for every 100 of working age by comparison.
