2024 Mercer CFA Institute Global Pension Index is here

The 2024 edition of the Mercer CFA Institute Global Pension Index is now live! The report delivers the world’s most comprehensive comparison of 48 retirement income systems against more than 50 indicators and benchmarks and on three sub-indices: adequacy, sustainability, and integrity. This year, the Netherlands has gained the top spot, with Iceland, Denmark, and Israel following, all with A-grade pension systems. The results of the report underscore a critical point, as examined through a special chapter on defined contributions: “Now is the time for governments, policymakers and the pension industry to work together to ensure that older populations are treated with dignity and are able to maintain a lifestyle similar to that they experienced in their working years. For many countries, this requires tackling pension reform now, before it’s too late.

Although each system reflects a unique history, there have emerged some common themes for improvement because many systems face similar problems in the decades ahead. The report outlines a range of reforms that can be implemented to improve retirement income systems’ long-term outcomes. They include:

• Expanding pension coverage to nonstandard workers and the self-employed through compulsory or automatic enrollment.

• Raising pension and retirement ages to match longer life expectancy, reducing public pension costs.

• Encouraging workforce participation at older ages to increase savings and reduce retirement length.

• Promoting greater private saving to reduce dependence on public pensions.

• Closing gender and minority pension gaps.

• Limiting pre-retirement withdrawals to preserve savings.

• Improving pension plan governance and transparency to boost the confidence of plan members participants.

Finland’s index position this year is seven. Explore the report and discover more about the analysis and your pension system, and use the materials below to promote the report in your local market.