Global Pension Index 2025 Rankings: Why India is ranked among lowest?

New Delhi: India’s pension system has been ranked D-grade by the Global Pension Index 2025. The country’s retirement income system was given a score of 43.8 out of 100. The index provides a comparative view of how well nations’ pension systems are delivering.

The Global Pension Index 2025 has taken three key factors - adequacy (current benefits), sustainability (future viability), and integrity (regulation), into consideration for publishing the report.

The Global Pension Index 2025 has been published by Mercer and the CFA Institute. The report mentioned that only The Netherlands, Iceland, Denmark, Singapore, and Israel rank highest in terms of pension system, while India ranks lowest. The top ranked nations offer strong retirement benefits, sound regulation, and solid asset bases.

Notably, countries such as India, Philippines, and Thailand have ranked poorly in the pension system index.

"The research highlights significant diversity between systems around the world, with index scores ranging from 43.8 to 85.4. The Netherlands, Iceland, Denmark, Singapore, and Israel rank highest. These nations offer strong benefits, sound regulation, and solid asset bases. India ranks lowest," said the report.

The Global Pension Index 2025 report benchmarks 52 retirement income systems across the world, covering about 65 per cent of the world’s population.

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This special chapter suggests the following eight principles to balance between acting in the best interests of private pension plan participants and acting in the broader national interest.