Mercer CFA Institute Global Pension Index 2024 Highlights Need for Retirement System Improvements Given Falling Birth Rates and Increasing Longevity
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The Netherlands retains top spot as world’s leading retirement income system
The Netherlands’ retirement income system has retained the top spot on the list, with
“In a world where fertility rates are falling and life expectancy is rising, retirement income systems are center stage,” commented
Helping DC plan members get the best retirement outcomes
Retirement systems around the world are increasingly moving away from defined benefit (DB) plans and shifting to defined contribution (DC) arrangements. The report explores the opportunities and challenges associated with DC plans for both pension plans and individuals.
“The ongoing shift to defined contribution pension plans introduces many financial planning challenges, which are falling squarely on the shoulders of tomorrow’s retirees,” said
Despite these challenges, as people live longer, the increased flexibility and personalization offered by DC programs will be critical. The concept of retirement is shifting, and many individuals are transitioning gradually to retirement or rejoining the workforce in a different capacity after their initial retirement. DC plans also offer important benefits to gig and contract workers, who have often been left out of traditional DB schemes.
“Significant retirement income system reforms are needed to meet the financial needs of retirees and their evolving work expectations,” commented Dr.
By the numbers
The Index uses the weighted average of the sub-indices of adequacy, sustainability and integrity. For each sub-index, the systems with the highest values were
Increasing longevity, high interest rates and rising costs of care have put increased pressure on government budgets to support pension programs, causing scores to be slightly lower this year overall. Several systems, including
2024 Mercer CFA Institute Global Pension Index
System |
Overall Grade |
Total |
Adequacy |
Sustainability |
Integrity |
|
A |
84.8 |
86.3 |
81.7 |
86.8 |
|
A |
83.4 |
82.0 |
84.3 |
84.4 |
|
A |
81.6 |
84.0 |
82.6 |
76.3 |
|
A |
80.2 |
75.7 |
82.6 |
84.1 |
|
B+ |
78.7 |
79.8 |
74.3 |
83.0 |
|
B+ |
76.7 |
68.4 |
79.5 |
86.1 |
|
B+ |
75.9 |
77.0 |
64.2 |
90.8 |
|
B+ |
75.2 |
77.2 |
63.6 |
88.3 |
|
B |
74.9 |
71.2 |
70.9 |
86.5 |
|
B |
74.3 |
75.2 |
73.7 |
73.6 |
|
B |
71.6 |
75.7 |
61.5 |
79.3 |
|
B |
71.5 |
66.0 |
71.4 |
80.4 |
|
B |
68.9 |
84.0 |
46.6 |
76.1 |
|
B |
68.7 |
64.8 |
64.9 |
80.2 |
|
B |
68.6 |
81.8 |
40.1 |
87.4 |
|
B |
68.5 |
73.8 |
63.4 |
67.1 |
|
B |
68.4 |
67.0 |
63.8 |
77.1 |
|
B |
68.1 |
73.6 |
52.8 |
80.5 |
|
B |
68.0 |
84.8 |
43.4 |
75.7 |
|
B |
67.3 |
81.1 |
45.8 |
75.3 |
|
B |
67.2 |
66.8 |
57.4 |
81.7 |
|
B |
66.9 |
83.4 |
34.6 |
85.7 |
|
C+ |
64.8 |
77.1 |
43.3 |
75.3 |
|
C+ |
64.0 |
45.8 |
73.1 |
80.4 |
Hong Kong SAR |
C+ |
63.9 |
51.5 |
61.1 |
87.5 |
|
C+ |
63.3 |
82.9 |
30.7 |
77.6 |
|
C+ |
63.0 |
63.9 |
57.4 |
69.5 |
|
C+ |
60.5 |
61.1 |
58.0 |
62.9 |
|
C+ |
60.4 |
63.9 |
58.4 |
57.5 |
|
C |
56.8 |
59.2 |
45.2 |
69.4 |
|
C |
56.5 |
65.2 |
37.8 |
69.1 |
|
C |
56.3 |
44.5 |
54.6 |
77.4 |
|
C |
55.8 |
70.4 |
31.0 |
67.3 |
|
C |
55.4 |
39.7 |
52.0 |
85.2 |
|
C |
55.4 |
68.2 |
25.1 |
77.2 |
|
C |
54.9 |
57.1 |
47.1 |
62.1 |
|
C |
54.7 |
55.3 |
46.9 |
64.7 |
|
C |
54.5 |
56.8 |
41.3 |
69.3 |
|
C |
53.7 |
46.2 |
51.9 |
68.2 |
|
C |
53.4 |
67.2 |
22.0 |
75.2 |
|
C |
52.2 |
40.5 |
52.4 |
70.5 |
|
C |
50.2 |
38.1 |
50.4 |
69.3 |
|
C |
50.0 |
50.2 |
43.8 |
58.2 |
|
D |
49.6 |
34.7 |
48.0 |
75.7 |
Türkiye |
D |
48.3 |
48.3 |
32.2 |
70.8 |
|
D |
45.8 |
41.7 |
63.4 |
27.7 |
|
D |
45.5 |
61.5 |
29.4 |
42.3 |
|
D |
44.0 |
34.2 |
44.9 |
58.4 |
About the Mercer CFA Institute Global Pension Index (MCGPI)
The MCGPI benchmarks retirement income systems around the world and suggests possible areas of reform that would provide more adequate and sustainable retirement benefits. This year, it compares 48 retirement income systems across the globe, including a new entrant,
The Global Pension Index is a collaborative research project co-sponsored by
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