The Global Pension Index

Melbourne Mercer Global Pension Index has become an important reference point in the debate about the quality of retirement systems around the world. While some countries have well-established retirement systems that have stood the test of time, others are just developing, especially those within the Asian region. The main goal of the Index is to provide additional information for policy makers to struggle with the competing needs of an ageing population and achieving an appropriate fiscal balance.

The overall index value for each country represents the weighted average of the three sub-indices: adequacy, sustainability and the integrity.
  • Adequacy sub-index considers the base level of retirement income provided as well as the net replacement rate for median-income earners.
  • Sustainability sub-index evaluates the long-term sustainability of the current retirement income system in many countries is a concern, particularly in the light of the ageing population, the increasing ratio of retirees to productive workers and, in some countries, increasing government debt.
  • Integrity sub-index is intended to be representative measure of the ability of private sector pension providers to deliver retirement benefits over many years into the future. This sub-index therefore considers the role of regulation and governance, the protection provided to participants and the level of communication provided to members.

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