What it is: From 2012, any worker over the age of 22 and earning more than £5,000 (S$15,000) a year will be automatically enrolled in a personal retirement account, on top of the state pension he already gets. The retirement age will be raised from 60 to 68.
How it works: Employers contribute 3 per cent of worker's income to the new opt-out scheme, with workers contributing 4 per cent. High-earners can choose to set aside more (up to £306,000 a year).
Snags: Low-earners can ill-afford to save 4 per cent of pay, plus they stand to lose some state pension perks and end up paying higher taxes on this scheme, because if they seem to be able to set money aside, the law will regard them as not being in need of pension perks.
CHILE
What it is: Since 1981, there has been a CPF-like mandatory contribution scheme known as AFP, on top of a minimum state pension.
How it works: Workers put in a mandatory contribution of 10 per cent on the first US$22,000 (S$33,500) of income, which pension fund managers invest in bonds or stocks. Employers do not contribute anything. Upon retirement, workers opt to draw down or buy insurance annuities with the savings.
Snags: Workers must have contributed for at least 20 years to be eligible for AFP, despite the fact that 40 per cent of Chileans have unstable and poorly paid jobs. Also, pension fund managers cream quite a bit off these retirement accounts as commissions.
ITALY
What it is: In 2004, instead of state pensions, the government decided to give each worker a personal retirement account, to which are credited notional, or non-financial, contributions linked to GDP growth. The retirement age was raised from 57 to 60, and will inch up to 61 in 2013.
How it works: Workers don't put anything into their accounts, but the longer they work, the more credits they get to convert into cash on retirement. Retirees can either withdraw regularly from their accounts or convert these into annuities.
Snags: Most workers want to stop working by age 60, so the government will still have to support them somehow when their notional account savings run out.
JAPAN
What it is: A two-tier pension system comprising a flat-rated basic pension and an employees' pension, which itself is split into a flat-rate payout and a payout from employer contributions based on a percentage of one's salary and bonus.
How it works: Every worker gets his basic pension upon the retirement age of 65 for men (60 for women) but stands to get more if he has a higher salary and bigger bonuses.
Snags: You have to work for at least 25 years to get the basic pension, and for at least 40 years to get both the basic and employees' pension in full. Also, companies which set up and contribute to their employees' retirement accounts can choose not to give them the salary- and bonus-linked undefined payout.
THE NETHERLANDS ;/b>
What it is: Upon turning 65, all workers will get a regular state pension, about 31 per cent of their last-drawn salary, plus a holiday allowance. Virtually all will also get a separate pension from their employers, which is often 70 per cent of their last-drawn salary.
How it works: Workers have to pay progressive income tax of between 2.5 per cent and 52 per cent a year to fund pensions.
Snags: Few, if any. This is about as good as it gets.
THE UNITED STATES
What it is: Three-legged stool comprising (1) a state pension known as Social Security, (2) company-sponsored or private pension plans such as the 401(k) and (3) a worker's own savings. The retirement age will be raised from 62 to 65 come 2022.
How it works: To get Social Security, your employer must have contributed towards your retirement for at least 10 years. The longer you work, the more benefits you get.
Snags: If 401(k) savings are invested in volatile equities, employees could see their money wiped out when the market falls.
Note: Most developed countries pay state pensions. The money comes from employers' contributions and taxpayers.
Cheong Suk-Wai