The Melbourne Mercer Global Pension Index compares retirement income systems in 25 countries representing 58% of the world’s population. The Index rates these systems based on their Adequacy (accounts for 40% of the overall score), Sustainability (35%), and Integrity (25%). This comes at a time when pension systems worldwide are under increasing pressure due to rising life expectancy, increased governmental debt, uncertain economic conditions, and a global shift to defined contribution plans.
“The tides of accountability for ensuring financial security in retirement are shifting from State and employer responsibility to individuals in many countries,” said Dr. David Knox, Senior Partner at Mercer responsible for the company’s contribution to the Index. “This trend will continue as life expectancy continues to increase and many governments reduce the per capita expenditure on their aged population. This shift means communication to members has never been more important or come under more scrutiny from members, regulators, employers, consumer groups, politicians, and the media.”
“Ensuring transparency and the trust of individuals is becoming increasingly important,” he added. “If you lose community trust in a pension system, you risk losing the effectiveness of the system.”
Learn how retirement systems around the world are ranked in 2014.
Download the 2014 edition of the Melbourne Mercer Global Pension Index.