Universally, Netherlands took the top spot, followed by Iceland and Denmark, while Argentina was ranked last, according to the index.
Metrics of Evaluation – Top Performing Nations
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Global Pension Index ranked the systems on acceptability, sustainability, and integrity.
According to the 15th annual Mercer CFA Institute Global Pension Index (MCGPI) report, it shows that the Netherlands’ retirement income system with (85.0 index value) has once again secured the first position. Iceland (83.5) and Denmark (81.3) have claimed the second and third positions in the ranking, respectively.Argentina had the smallest index value (42.3), it added.
India’s Progress and Challenges
India had an overall index value of 45.9 from 44.5 in 2022, ranking 45 out of the 47 retirement income systems dissected primarily due to advancements in acceptability and sustainability sub-indices.
This year, the Global Pension Index compares 47 withdrawal income systems across the globe and covers 64 percent of the world’s population.
The Global Pension Index uses the weighted standard of the sub-indices of acceptability, sustainability, and integrity to measure each retirement system against further than 50 indicators.
New Entrants and Reforms
The 2023 Global Pension index includes three new systems – Botswana, Croatia, and Kazakhstan.
Several Asian systems, still, including landmass China, Korea, Singapore, and Japan, have accepted reforms to ameliorate their scores in the last five years.
The report further stated that India’s withdrawal income system comprises an earnings- related hand pension scheme, a DC ( defined contribution) employee provident fund ( EPFO), and supplementary employer-managed pension schemes that are largely DC in nature.
The government schemes have been launched as part of the universal social security program aimed at serving the unorganised sector, according to the report.
Challenges in Pension Planning – Inflation and Globalizing
“Inflation and rising interest rates have created a new market dynamic that poses significant challenges to pension plans. We also see continued fracturing as it relates to globalization. These are just a many of the increasingly complex challenges that pension finances face that impact retirees in significant ways.
Individual Empowerment in Retirement Preparedness
“Further and more frequently, individualities will have an increasingly important part to play as it relates to their own retirement. As investment professionals, we need to help them prepare for that. Each year, this index serves as a critical reminder that there’s a long way to go in numerous authorities to make pension plans serve their best and for the long-term fiscal security of heirs.”
