This report delivers the world’s most comprehensive comparison of 47 retirement income systems, representing 64% of the global population, and suggests ways to improve the efficacy of each pension system studied.
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Report Overview
Many countries around the world are grappling with the social, economic, and financial effects of aging populations, making financial security in retirement a critical challenge for both individuals and society. Mounting inflation and rising interest rates, as well as societal fracturing resulting from deglobalization, are compounding the pressures on retirement income systems.
The structure and characteristics of pension systems around the world exhibit great diversity, with a wide range of features and norms. Certain frameworks and features across the range of systems, however, are likely to improve financial benefits for older individuals, increase the likelihood of future sustainability, and create a greater level of community trust and confidence.
Mercer CFA Institute Global Pension Index uses three sub-indices—adequacy, sustainability, and integrity—to measure each retirement income system against more than 50 indicators. Retirement systems that meet the adequacy, sustainability, and integrity standards of the index contribute to the health of the financial system.
This year, the report also examines the growing impact of artificial intelligence (AI) on pension systems and their members. AI is already here and evolving quickly. Although AI applications are still being explored, their increasing impact will no doubt be profound in the years to come. The report considers the broad effects of AI on our retirement income systems, including the benefits as well as some of the risks involved in this development.
CFA Institute is honored to sponsor the Mercer CFA Institute Global Pension Index and to again collaborate with Mercer and the Monash Centre for Financial Studies. Our collaborative endeavor continues to develop and distribute this important research on a topic of significant global importance.