Global Pension Index 2023: The Global Pension Index (GPI) is a lighthouse amidst the murky waters of retirement income systems worldwide. Published by the esteemed Mercer CFA Institute, the index ranks 47 retirement income systems, encapsulating 64% of the global populace, and presents a detailed examination of each, aiming to enhance their effectiveness for a secure post-work life for citizens1. The 2023 edition marks a milestone as it celebrates its 15th anniversary, promising a wealth of insights for policy-makers and the global audience.
Global Pension Index 2023- Methodological Compass
The methodology underlying the GPI is its cornerstone, offering a robust framework for comparison. It hinges on three sub-indices—adequacy, sustainability, and integrity—each scrutinized through more than 50 diverse indicators. The weighted average of these sub-indices forms the crux of the evaluation, ensuring a balanced and thorough assessment of each retirement system23.
Global Pension Index Rankings Revelations
The rankings are a mirror reflecting the health of the pension systems globally. With its exemplary system, the Netherlands has clinched the top spot, closely followed by Iceland and Denmark. These nations not only lead the rankings but also boast an ‘A’ rating, showcasing the robustness of their pension landscapes.
New Entrants in Global Pension Index 2023
2023 welcomes new faces—Botswana, Croatia, Kazakhstan, and Portugal, enriching the index with fresh perspectives and broader geographical representation.
Despite the achievements, the index unveils glaring challenges. Retirement systems are under a magnifying glass, facing pressures like never before. The alarm bells are ringing, necessitating a global conversation on fortifying our pension systems for the future.
The AI Frontier:
The 2023 GPI ventures into the uncharted territory of Artificial Intelligence (AI), delving into its growing impact on pension systems. Though the exploration is in its infancy, the promise and perils of AI are clear, heralding a new era of innovation in the pension landscape.
About India’s Ranking at Global Pension Index 2023
India’s descent to the 45th position unveils a realm of improvement. Despite a marginal score uplift, the GPI suggests bolstering the pension system by enhancing minimum support, broadening coverage to unorganized workers, and easing private pension system regulations to climb up the ranks in the forthcoming years.
The GPI is more than just a ranking—it guides nations towards a secure retirement landscape. It beckons a call to action for policy-makers to heed the insights and work collaboratively to elevate global pension systems to new heights.
Conclusion of Global Pension Index 2023
The 2023 Global Pension Index is a treasure trove of insights, offering a lens to scrutinize the global pension landscape. As nations grapple with evolving challenges, the GPI serves as a catalyst, urging a global dialogue to ensure a secure and dignified retirement for all.
The journey through the 2023 GPI not only educates but also challenges us to envision a future where retirement is not a mere afterthought but a well-planned, well-deserved phase of life, promising security and serenity.
What is the Global Pension Index (GPI) 2023?
The GPI 2023 is a comprehensive report published by the Mercer CFA Institute that ranks 47 retirement income systems worldwide, representing 64% of the global population. It aims to compare and improve the efficacy of each pension system by examining them based on three sub-indices: adequacy, sustainability, and integrity.
Which country topped the Global Pension Index 2023 rankings?
The Netherlands topped the rankings in the Global Pension Index 2023, followed by Iceland and Denmark. These countries were rated ‘A,’ reflecting the robustness and effectiveness of their pension systems.
How are the countries ranked in the Global Pension Index?
Countries are ranked based on a weighted average of three sub-indices: adequacy, sustainability, and integrity. More than 50 indicators are used to measure each retirement system against these sub-indices, providing a comprehensive evaluation of their performance.
What new countries were included in the Global Pension Index 2023?
The 2023 edition of the Global Pension Index included four new countries: Botswana, Croatia, Kazakhstan, and Portugal. These additions enrich the index with fresh perspectives and broader geographical representation.
What suggestions does the Global Pension Index 2023 offer for improving pension systems?
The GPI 2023 not only ranks pension systems but also provides suggestions for improvement. For instance, in India’s case, it recommends enhancing minimum support, expanding coverage to unorganized workers, and easing regulations for the private pension system to improve its ranking and provide better retirement support for its citizens