Key Takeaways
- • The Marsh CFA Institute Global Pension Index, in its 18th edition, benchmarks 55 retirement income systems, adding Dominican Republic, Kenya and Qatar this year and covering 66% of the world's population.
- • Each system is scored across three pillars: Adequacy (40% weighting), Sustainability (35%) and Integrity (25%), using more than 50 indicators.
- • Top-rated systems by sub-index are Kuwait, the Netherlands and France for Adequacy; Denmark, Iceland and the Netherlands for Sustainability; and Finland, Norway and Singapore for Integrity.
- • The 2026 deep dive examines how aging populations, falling birth rates and rising life expectancy affect pension costs, funding and investment strategy.
- • The report cites US$70 trillion in global pension fund assets, and says a growing share is moving toward defensive positioning as demographic pressures build.
Summary
The Marsh CFA Institute Global Pension Index, produced with Mercer, is now in its 18th edition and provides a benchmarking framework for comparing the world's retirement income systems. This year the index assesses 55 pension systems, with the addition of the Dominican Republic, Kenya and Qatar, covering 66% of the world's population. The publisher's description of the 2025 edition said eight systems improved their grades, which it characterized as steady progress across pension systems globally.
Systems are assessed across three pillars. Adequacy, weighted at 40%, asks how much retirement income a system delivers today. Sustainability, weighted at 35%, asks whether the system can keep delivering over time. Integrity, weighted at 25%, asks whether the system can be trusted by those who depend on it. The report evaluates each system across more than 50 indicators. Kuwait, the Netherlands and France rank highest on Adequacy; Denmark, Iceland and the Netherlands lead on Sustainability; and Finland, Norway and Singapore top the Integrity sub-index.
The 2026 edition's topical focus is the impact of aging populations on pension systems. The report identifies five long-term implications: higher pension provision costs as individuals live longer; funding pressure as the working-age population shrinks relative to retirees; the need for more flexible designs that accommodate phased retirement and non-traditional employment; intergenerational tensions as adequacy and sustainability are reviewed; and shifts in pension fund investment strategy as a larger proportion of the US$70 trillion in global pension fund assets moves toward defensive positioning. The authors argue that policymakers who act now have a window to implement evidence-based reforms, and that while demographic change is inevitable, the policy response is a matter of choice.
Systems are assessed across three pillars. Adequacy, weighted at 40%, asks how much retirement income a system delivers today. Sustainability, weighted at 35%, asks whether the system can keep delivering over time. Integrity, weighted at 25%, asks whether the system can be trusted by those who depend on it. The report evaluates each system across more than 50 indicators. Kuwait, the Netherlands and France rank highest on Adequacy; Denmark, Iceland and the Netherlands lead on Sustainability; and Finland, Norway and Singapore top the Integrity sub-index.
The 2026 edition's topical focus is the impact of aging populations on pension systems. The report identifies five long-term implications: higher pension provision costs as individuals live longer; funding pressure as the working-age population shrinks relative to retirees; the need for more flexible designs that accommodate phased retirement and non-traditional employment; intergenerational tensions as adequacy and sustainability are reviewed; and shifts in pension fund investment strategy as a larger proportion of the US$70 trillion in global pension fund assets moves toward defensive positioning. The authors argue that policymakers who act now have a window to implement evidence-based reforms, and that while demographic change is inevitable, the policy response is a matter of choice.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.