Netherlands, Denmark, and Sweden highlighted for pension model success

A study by the Brussels-based think tank Bruegel examines the pension systems of Denmark, Sweden, and the Netherlands, comparing them to other EU nations to determine if their success can be replicated. Researchers found that these three countries maintain high replacement ratios—between 63 and 75 percent of previous wages—while keeping government costs manageable.

The key distinction is that these nations rely on decades of accumulated savings and investments rather than solely on current worker premiums. For instance, Denmark’s pension assets are approximately 200 percent of its GDP, while the Netherlands exceeds 100 percent, and Sweden’s assets surpass the size of its entire economy.

In contrast, countries like Spain face long-term deficits because they primarily fund benefits through the premiums of current workers. The study suggests that the models used in the Netherlands, Denmark, and Sweden provide a more sustainable formula for balancing retiree benefits with fiscal stability.