India Ranked 41st in Mercer Global Pension Index 2022
The Global Pension Index 2022 has been released by the Mercer CFA Institute in October, 2022. Iceland topped it for the second year in a row, while the Netherlands and Denmark were ranked second and third respectively.
Thailand has been ranked at the bottom. In this, India is at 41st place. America ranked 20th, while for the first time, Portugal was ranked 24th and China ranked 36th. This year it is its 14th edition.
This index provides a ranking of the pension systems of the world. It benchmarks 44 retirement income systems around the world and highlights the various challenges and opportunities. Concerns have also been expressed about the retirement plans of workers globally.
The Mercer report also recommends promoting higher labor force participation among older people. It recommends raising the retirement age by countries in view of rising issues of aging, government debt and low birth rates.
The reason for this is attributed to delayed entry by people into the workforce. The retirement age in the countries surveyed ranged from 55 to 68. It states that governments need to encourage people to take some time off and work.
It is an annual index. The index uses three sub-indices—adequacy, stability, and integrity—to measure each retirement income system against more than 50 indicators. According to the United Nations, the share of the world's 65 or older population is projected to increase from 9.7% this year to 16.4% in 2050.
