Pension Problems: Most Equity-Happy Countries in World

Given the problems facing most pension plans worldwide, it’s worth considering which countries’ pension plans have been skewing toward equities in recent years. They will be the ones most at risk in the current credit crisis. According to some new OECD research, it shakes out as follows.


Another way of looking at the same thing is by considering which countries have the highest allocations to equities. Top of the equity pops – as measured by the skew toward equities over bonds – is Belgium, where equities are held ahead of bonds by 48% to 21.5%; Canada by 50% to 34.4%; Germany by 31.3% to 28.8%; and the United States by 59.2% to 22.4%.