Delivering the world’s most comprehensive comparison of 44 retirement income systems against more than 50 indicators and benchmarks and on three sub-indices: Adequacy, Sustainability, and Integrity.
Financial security in retirement is critical for both individuals and societies as most countries are now grappling with the social, economic and financial effects of ageing populations. The Covid-19 pandemic also had implications for pension systems, compounded this year by a dramatic shift from a ‘lower for longer’ interest rate environment to significant rates of inflation, rapidly rising interest rates in some markets and a rise in the cost of living for many.
This edition of the Index compares 44 retirement income systems, highlighting both the considerable diversity and the positive features present in many systems. The study also confirms that no pension system is perfect and that every system has shortcomings. In that respect it is hoped this study will act as a stimulus for governments and policymakers around the world to review retirement income systems so that the outcomes for future retirees can be improved.
In this context, CFA Institute continues to highlight pensions and retirement matters in its thematic priorities. Access to, and sustainability of, robust pension systems are key components to strengthening the structural resilience of the capital markets, and we are delighted to be partnering with Mercer once again to bring this research to market.
At CFA Institute, our mission is to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. In particular, the closing words – “the ultimate benefit of society” – speak directly to our desire to increase the positive real-world impact of investment management. Retirement systems that meet the adequacy, sustainability, and integrity standards of the Index contribute to the health of the financial system. Now, more than ever before, it is important to understand the features of the better pension systems.