In this Take 15 episode, David Knox, senior partner at Mercer Australia and the lead author of the Mercer CFA Institute Global Pension Index, discusses the characteristics that make up a good pension system.
Pension funds are a primary source of retirement income and are enormously influential in financial markets. It is important that those in business and in government work together to improve pension systems globally and to enhance investors’ knowledge of pension issues. The Mercer CFA Institute Global Pension Index (MCGPI), which compares the ratings of 39 pension systems globally, is a valuable tool in accomplishing those goals. Having accurate and comparative information between the pension systems contained in the index enables proactive discussions and can facilitate better outcomes.
Much has been learned about system effectiveness over the years, and the experiences of the systems included in the index provide insights for others to follow. Though challenges exist, the index focuses on actions that each system can take to have greater adequacy, sustainability, and integrity. Because each system has its own unique history and culture, an index is a helpful way to differentiate what is possible and practical in each market.
The Take 15 Series is a collection of illuminating, short conversations with noted economists, best-selling authors, leading researchers, and successful practitioners on topics ranging from geopolitics and whistleblowing to irrationality and outlooks.