The Global Pension Index 2025 ranks India with a D-grade and a score of 43.8 out of 100, putting it significantly behind top-performing systems.
Key Highlights
- India scores D-grade in Global Pension Index 2025, ranking lowest globally for retirement system adequacy and sustainability.
- Mercer-CFA report highlights Singapore, Netherlands, and Denmark as top-ranked nations with robust and sustainable pension systems.
The report, which evaluates 52 retirement systems covering 65% of the world’s population, places the Netherlands, Iceland, Denmark, Singapore, and Israel among the strongest performers for their robust benefits and governance. In contrast, India, the Philippines, and Thailand rank at the bottom, reflecting inadequate pension benefits, limited coverage, and governance inefficiencies.
India’s low score underscores structural challenges — limited pension access for informal workers, fiscal stress, and weak long-term sustainability. Despite a modest improvement in regulatory integrity, India’s pension schemes remain underfunded and constrained by conservative investment rules.
Globally, Singapore’s Central Provident Fund (CPF) retained its top position with an 86/100 score, praised for its comprehensive coverage, sustainability, and mandatory contributions from both employers and employees.
Experts note that India can improve its ranking by expanding pension coverage to informal sectors, establishing a minimum support level for vulnerable retirees, ensuring long-term preservation of benefits, and enhancing transparency and regulatory oversight.
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While no country was downgraded this year, India’s overall index value slightly declined from 44.0 to 43.8 due to a weaker sustainability score.
The study concludes that India’s pension system must evolve rapidly to meet the growing retirement needs of its ageing population, requiring structural reforms, stronger governance, and deeper financial inclusion.
