Iceland, the Netherlands and Denmark again took the top three rankings in this year’s Mercer CFA Institute Global Pension Index. But the report recommended that retirement ages need to be lifted almost everywhere in the face of mounting threats from aging populations, ballooning government debt and low birth rates.
The report’s top three countries, while not immune to global economic headwinds, were again found to have sustainable and well-governed systems with a healthy mix of public and private sector pensions and a “high level of integrity.” The US ranked 20th of the 44 countries surveyed, while newcomer Portugal came in at 24 and mainland China was ranked 36. Mexico, in 29th place, was singled out for improving its score significantly due to pension reforms. Thailand was ranked lowest, coming in just below the Philippines, Argentina and India. Mercer described those systems as having “some desirable features” but also major weaknesses that needed to be addressed.