Last Updated Oct 11, 2011 2:01 PM EDT

Where should you retire? The Melbourne Mercer Global Pension Index takes a very high-level view of this question, asking which countries do the best job of providing for their retirees. Out of the 16 countries studied, the United States ranks only tenth. Given the crumbling of the defined benefit system and stock market fluctuations that have taken a bite out of many defined contribution plans, that’s perhaps not surprising. What is a bit of a shocker is exactly which countries are doing better than the United States in providing for their older populations.

Here’s how Mercer and the Australian Centre for Financial Studies ranked the provisions for retirees in 16 countries, which make up more than half the world’s population:

1. Netherlands
2. Australia
3. Switzerland
4. Sweden
5. Canada
6. United Kingdom
7. Chile
8. Poland
9. Brazil
10. United States
11. Singapore
12. France
13. Germany
14. Japan
15. India
16. China

That’s right. It’s not just those ‘progressive’ Western European nations. We all know that, as a country, Sweden places a heavy emphasis on income equality while the United States celebrates individual achievement. It’s also possible that the formal structures for supporting retirees in Japan, say, could be found to be lacking partly because Japanese families are expected to provide for older relatives. Still, it’s a bit surprising that Chile, Poland and Brazil all got higher marks than the U.S. Here are some of the reasons why:

• Company stock. Some U.S. pension plans can still be stuffed with company stock, which most countries severely limit.
• National Debt. The U.S. has a high level of debt, which could limit the country’s ability or willingness to continue to fund social security in its current form or to continue to make tax breaks available for some retirement savings.
• Working in ‘retirement.’ In countries such as Australia, France, the Netherlands, Poland, Singapore and Sweden, older workers can begin to draw on social security and other benefits even as they continue working, which of course enhances their financial stability.
• Participation is voluntary. Chile’s system includes a defined-contribution components similar to our 401k accounts, but participation is mandatory and an individual’s account is not tied to his or her employer.
• The U.S. safety net is tied to work. Poland’s retirement income system was reformed in 1999. The new system applies to everyone born after 1968 and includes a minimum pension for everyone.
• Other uses of retirement savings. It’s relatively easy to get money out of retirement account in the U.S. before you retire. While so-called ‘hardship withdrawals’ may be an important way to get people to contribute to a system that’s largely voluntary, they also reduce the amount of money workers have available once they retire.

Do you feel well-prepared, financially, for retirement? What government incentives, if any, would help?

Kimberly Weisul is a freelance writer, editor and editorial consultant. Follow her on twitter on www.twitter.com/weisul.

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