The highly anticipated Mercer CFA Institute Global Pension Index for 2025 has been released, revealing which countries offer the most robust and sustainable retirement systems for their citizens. This comprehensive study, now in its 17th year, provides crucial insights into retirement security across the globe.
The Elite Performers: Top 10 Pension Systems Worldwide
The 2025 rankings showcase familiar champions maintaining their dominance in retirement security. The Netherlands continues its impressive reign at the top position, followed closely by Iceland and Denmark, demonstrating that Scandinavian and European nations consistently prioritize retirement welfare.
The complete top 10 list includes:
- Netherlands
- Iceland
- Denmark
- Israel
- Australia
- Finland
- Singapore
- Norway
- Sweden
- Hong Kong
India's Position in Global Retirement Landscape
India finds itself ranked 45th among the 50 countries analyzed in the 2025 index. While this position might seem modest, it's important to note that India's overall index value showed notable improvement compared to previous years.
The country received a C+ grade, indicating that while the system has some positive features, there are also major risks and shortcomings that need addressing. This grade represents progress from previous assessments and suggests India is moving in the right direction.
What Makes a Pension System World-Class?
The Global Pension Index evaluates retirement systems based on three critical sub-indices:
- Adequacy: How well the system provides retirement benefits
- Sustainability: The long-term viability of pension provisions
- Integrity: Governance, regulation, and protection for members
Top-ranking countries typically excel across all three dimensions, creating comprehensive safety nets for their aging populations.
The Road Ahead for India's Retirement Security
Despite the challenging ranking, the report highlights several opportunities for India to enhance its pension system. Key recommendations include:
- Increasing the minimum level of support for the poorest elderly citizens
- Improving coverage among workers in the informal economy
- Raising the pension age as life expectancy increases
- Promoting higher levels of private pension savings
The 2025 Global Pension Index serves as both a report card and roadmap for nations striving to provide dignified retirement for their citizens. As populations age globally, these rankings become increasingly crucial for policymakers and citizens alike.
