David Knox
Lead Author, Actuary and Senior Partner, Mercer
The Mercer CFA Institute Global Pension Index benchmarks 48 retirement income systems around the world, highlighting challenges and opportunities within each. Vietnam was added to the mix this year. We used updated data from the OECD and other international agencies and added some new questions to the integrity sub-index.
The index is made up of three sub-indices, namely adequacy, sustainability and integrity, to measure each retirement income system against more than 50 indicators. This year’s A-grade pension systems are the Netherlands, Iceland, Denmark and Israel.
Each year we include a feature chapter that looks at a topical issue within the pension space. This year we explore how we can help defined contribution members get the best retirement outcomes. Download the report below to discover more about the analysis and your pension system.
Netherlands
Index: 84.8
Rating: A
Iceland
Index: 83.4
Rating: A
Denmark
Index: 81.6
Rating: A
How much do you get?
1. Netherlands
2. France
3. Uruguay
Can the system keep delivering?
1. Iceland
2. Denmark
3. Israel
Can the system be trusted?
1. Finland
2. Norway
3. Hong Kong SAR
DC arrangements can be both flexible and confusing for retirees, and the final outcome for the individual retiree is often not as good as it should be.
Lead author, Actuary and Senior Partner, Mercer
The transition from defined benefit (DB) to defined contribution (DC) pension plans is occurring at different speeds around the world and often takes decades to fully implement.
According to the OECD, more than 50% of pension assets were held in (occupational) DC plans or personal plans. However, normally DC members do not receive an income from their DC pension plan, which is very different from the traditional DB pension plans. That’s why it’s critical that policies and principles are developed to ensure that retirees from these DC plans receive the best retirement outcome possible.
This chapter examines what pension plans, employers, policy makers and other stakeholders can do to help ensure DC members get the best retirement outcomes. Some of the key considerations are:
The ongoing shift to defined contribution pension plans introduces a host of new financial planning challenges, which are falling squarely on the shoulders of tomorrow’s retirees.
CFA, President & CEO, CFA Institute
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