Mercer CFA Institute Global Pension Index 2023 

October 17, 2023

An analysis and ranking of 47 pension systems around the world

In collaboration with

The Netherlands regains top spot

The Mercer CFA Institute Global Pension Index benchmarks 47 retirement income systems around the world, highlighting challenges and opportunities within each. Botswana, Croatia and Kazakhstan were added to the mix this year. We also used updated data from the OECD and added some new questions to the integrity sub-index. The Index is made up of three sub-indices, including adequacy, sustainability and integrity, to measure each retirement income system against more than 50 indicators. 

Each year we include a special feature that looks at a topical issue within the pension space. This year we take a deep-dive into the growing impact of AI on pension systems and their members. Download the report below to discover more about the analysis and your pension system.

This year’s top rated pension systems

#1

Netherlands
Index: 85.0
Rating: A

#2

Iceland
Index: 84.8
Rating: A

#3

Denmark
Index: 81.3
Rating: A

Top three rated systems for each sub-index

  • Adequacy

    How much do you get? 

    #1 Portugal
    #2 Netherlands
    #3 Iceland

  • Sustainability

    Can the system keep delivering?

    #1 Iceland
    #2 Israel
    #3 Denmark

  • Integrity

    Can the system be trusted?

    #1 Finland
    #2 Belgium
    #3 Norway

Retirement income systems around the world are under pressure like never before
Dr. David Knox

Lead author, Actuary and Senior Partner, Mercer

Overall rating for each pension system

  • China [55.3]
  • Hong Kong SAR [64.0]
  • India [45.9]
  • Indonesia [51.8]
  • Japan [56.3]
  • Korea (South) [51.2]
  • Malaysia [56.0]
  • Philippines [45.2]
  • Singapore [76.3]
  • Taiwan [53.6]
  • Thailand [46.4]

  • Austria [52.5]
  • Belgium [68.6]
  • Croatia [62.3]
  • Denmark [81.3]
  • Finland [76.6]
  • France [62.0]
  • Germany [66.8]
  • Iceland [84.8]
  • Ireland [70.2]
  • Italy [56.3]
  • Netherlands [85.0]
  • Norway [74.4]
  • Poland [57.6]
  • Portugal [67.4]
  • Spain [61.6]
  • Sweden [74.0]
  • Switzerland [72.0]
  • United Kingdom [73.0]

  • Botswana [54.5]
  • Israel [80.8]
  • Kazakhstan [64.9]
  • Saudi Arabia [59.5]
  • South Africa [54.0]
  • Turkey [46.3]
  • United Arab Emirates [62.5]

  • Argentina [42.3]
  • Brazil [55.7]
  • Chilli [69.9]
  • Colombia [61.9]
  • Mexico [55.1]
  • Peru [55.5]
  • Uruguay [68.9]

  • Australia [77.3]
  • New Zealand [68.3]

  • Canada [70.2]
  • USA [63.0]

Feature chapter:

Growing impact of AI on pension systems and their members 

The prevalence of artificial intelligence (AI) is likely to increase significantly over the next decade, impacting every aspect of our pension and social security systems. In the investment industry we’re already seeing AI being used for portfolio and risk management, trading, automated advice and client onboarding for example. 

CFA Institute recently surveyed its members1 and found that AI and big data are helping firms by enabling staff to be more productive, providing greater insight that helps lead to better products and services and facilitating better decision-making through enhanced modelling. In the report we look at AI’s impact on pension plan operations, member engagement and retirement planning, and examine the challenges and risks. 

Inflation and rising interest rates have created a new market dynamic that poses significant challenges to pension plans
Margaret Franklin            

CFA, President & CEO, CFA Institute

Meet our lead author and contributors

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