THE ARISING · Markets & Strategy
Global Pension Index Warns Aging Populations Are Straining Retirement Systems Worldwide
Even the world's best retirement systems cannot stand still, according to a new global ranking, and the pressure comes from a simple fact: people are living longer and having fewer children.
Marsh and CFA Institute released the 18th annual Marsh CFA Institute Global Pension Index on October 20, 2026. It compares 55 retirement income systems, covering 66% of the world's population. The Index scores each system on three measures: adequacy, sustainability and integrity.
The headline finding is that aging populations are putting growing strain on retirement systems. According to the report, falling fertility rates and rising life expectancy are changing how pension systems must be designed and funded if they are to last.
The Index points to three policy responses. Governments should set clear objectives for their pension systems. They should prioritize funding future retirement obligations. And they should build more flexibility into pension products and retirement age rules.
On retirement age, the report is direct. It says traditional ages of 60 or 65 are increasingly out of step with longer, healthier lives. It also notes that the line between work and retirement is blurring, driven in part by gig and part-time work. Tim Jenkins, the report's lead author and a Partner at Marsh People and Investments, said: "That flexibility is no longer optional."
The ranking itself shows both progress and gaps. The Netherlands, Denmark, Iceland, Singapore and Israel kept their A grade, with scores above 80. Australia earned an A for the first time. According to Marsh, these six systems deliver good benefits, are sustainable and have a high level of integrity.
Five systems improved their grade this year: Australia, the UAE, Oman, Panama and China. The average overall Index score rose 1.1 points from 2025. By sub-index, Kuwait ranked highest for adequacy, Denmark for sustainability and Finland for integrity.
For markets and policy watchers, the report is a signal about direction, not a forecast. It does not say which governments will act or how fast. It does suggest that pressure will fall on three areas: how pensions are funded, how products are designed, and when people can draw income. Those choices matter to governments, employers, and the investment professionals who manage retirement savings. Mona Naqvi of the CFA Institute Research and Policy Center said no single policy or investment decision can meet the challenge. She pointed to sound system design and governance, plus careful oversight by those with a fiduciary duty to savers and retirees.
What to watch next
Whether governments with lower-rated systems move on retirement age flexibility and funding rules, and whether next year's Index shows the average score continuing to rise.
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