Key Takeaways
- • The Netherlands, Iceland and Denmark again ranked as the top three retirement systems in the 2025 Mercer CFA Institute Global Pension Index, with the Netherlands scoring highest overall at 85.4.
- • Singapore earned an A grade for the first time in the index's 17-year history, the only Asian system at that level and ranked fifth overall.
- • The U.S. ranked 30th of 52 countries with a total score of 61.1, a one-rank drop from last year and a 0.7-point overall score increase.
- • Mercer proposed eight principles to balance acting in plan participants' best interests against broader national interests, warning that government mandates and restrictions can distort pension investment.
- • Eight retirement systems improved their grades this year and none were downgraded, according to the report.
Summary
The retirement systems of the Netherlands, Iceland and Denmark once again ranked as the top three worldwide in the 2025 Mercer CFA Institute Global Pension Index, the same trio that topped the 2024 report. The Netherlands posted the highest overall score at 85.4, Iceland scored 84 and recorded the highest sustainability score at 85.7, and Denmark scored 82.3. Singapore received an A grade for the first time in the index's 17-year history, making it the only Asian system at that level and the fifth-ranked system overall. Israel ranked fourth for the second consecutive year.
The index benchmarks 52 countries, representing 65% of the world's population, across three weighted metrics: adequacy (40%), sustainability (35%) and integrity (25%). Kuwait (71.9) posted the highest adequacy score at 86.6, while Finland (76.6) recorded the highest integrity score at 90.6. According to the report, overall score improvements stem from people living longer and continuing declines in birth rates. Eight systems improved their grade and none were downgraded.
The U.S. ranked 30th with a total score of 61.1, including an adequacy score of 64.1, a sustainability score of 59.9 and an integrity score of 58. It received a C+ grade alongside the UAE, Spain, Colombia, Oman and Malaysia.
Mercer highlighted that heightened geopolitical and economic uncertainty is reshaping global retirement landscapes, and that governments in some cases restrict private pension funds' investments. To balance participant interests with national interests, Mercer proposed eight principles, including that retirement income remain the primary purpose of pension funds, that fiduciaries act in beneficiaries' best interest, that governments use policy incentives rather than mandates, and that no performance tests or fee caps be applied to investments. Margaret Franklin, CFA Institute president and CEO, said that "Regulations and government actions — from tax policies to investment mandates — profoundly shape how pension funds can allocate capital," and warned the investment community to guard against unintended consequences when mandates or restrictions distort the system.
The index benchmarks 52 countries, representing 65% of the world's population, across three weighted metrics: adequacy (40%), sustainability (35%) and integrity (25%). Kuwait (71.9) posted the highest adequacy score at 86.6, while Finland (76.6) recorded the highest integrity score at 90.6. According to the report, overall score improvements stem from people living longer and continuing declines in birth rates. Eight systems improved their grade and none were downgraded.
The U.S. ranked 30th with a total score of 61.1, including an adequacy score of 64.1, a sustainability score of 59.9 and an integrity score of 58. It received a C+ grade alongside the UAE, Spain, Colombia, Oman and Malaysia.
Mercer highlighted that heightened geopolitical and economic uncertainty is reshaping global retirement landscapes, and that governments in some cases restrict private pension funds' investments. To balance participant interests with national interests, Mercer proposed eight principles, including that retirement income remain the primary purpose of pension funds, that fiduciaries act in beneficiaries' best interest, that governments use policy incentives rather than mandates, and that no performance tests or fee caps be applied to investments. Margaret Franklin, CFA Institute president and CEO, said that "Regulations and government actions — from tax policies to investment mandates — profoundly shape how pension funds can allocate capital," and warned the investment community to guard against unintended consequences when mandates or restrictions distort the system.
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