British workers can expect among the worst pensions in the developed world, according to a report from wealth managers UBS, which compared the retirement outlook for a 50-year-old woman in major cities across the globe.

UBS calculated how much a country’s basic state pension, plus “mandated” pensions such as the UK’s automatic enrolment scheme and Australia’s “superannuation” scheme, would pay out as a proportion of the income of a 50-year-old “average Jane” living in the capital city.

It found that Jane in London can expect just 41% of her current income in retirement, on a par with Hong Kong and just one place above the lowest-ranked city, Taipei in Taiwan.

Singapore, Sydney, Paris and Milan topped the table. UBS found Australia’s pension system was one of the most sustainable, with companies compelled to put aside 9.5% of a worker’s salary in a pension scheme. The UK’s auto-enrolment scheme, which is loosely modelled on the Australian one, compels British employers to pay just 1% of salary, rising to 3% in 2019.

The payouts from the Australian “super” scheme, on top of the country’s basic state pension, mean that a 50-year-old female in Sydney today can expect to retire at age 67 with an income of 72% of her current salary, compared with 41% in London.

Singapore came top of the table, just ahead of Sydney, helped by its giant $346bn (£262bn) Central Provident Fund. However, UBS said Jane in Zurich was the best off, measured by the amount of additional savings she would have to put aside to finance her lifestyle in retirement.

Private pension arrangements were not included in the study, which looked purely at mandatory arrangements in each country – in other words, the compulsory amounts that employers must set aside, plus the payouts from state pensions.

UBS said Jane in London would have to save 47% of her income every month at age 50 if she hoped to finance a basic urban lifestyle, assuming she had saved nothing yet privately.

“This highlights that the [UK] system relies heavily on private provisions,” it added. “The UK provides a good example of how starting late in life will require more sacrifice to catch up.”

Pensions compared

How much a state plus “mandatory” pension will be worth at retirement as a proportion of current income, based on a 50-year-old female in each city



Singapore 73%

Sydney 72%

Paris 69%

Milan 67%

New York 55%

Tokyo 55%

Munich 50%

Zurich 48%

Toronto 42%

London 41%

Hong Kong 41%

Taipei 32%

Source: UBS Wealth Management