MUMBAI: India has emerged as the second lowest among 34 countries providing retirement income systems with good benefits according to a study.
The Melbourne Mercer Global Pension Index has revealed that ageing population continued to pose challenges to the Governments worldwide with policymakers struggling to balance the twin goals of delivering financial security for their retirees that is both adequate for the individual and sustainable for the economy.
India, the study said, has been taking slow but steady steps towards strengthening its retirement income system, however, the country finds itself as the second lowest among 34 countries, grouped under grade-D along with Japan, China, Korea (South), Mexico and Argentina.
The Index used three sub-indices adequacy, sustainability and integrity to measure 34 country’s retirement income systems against more than 40 indicators.
Measuring 34 pension systems (34 countries), the Index showed that the Netherlands and Denmark (with scores of 80.3 and 80.2 respectively) both offer A-Grade world class retirement income systems with good benefits – clearly demonstrating their preparedness for tomorrow’s ageing world.
Meanwhile, countries with the highest value for the adequacy sub-index are Germany (79.9) and France (79.5) with Mexico (37.3) and India (38.7) having the lowest values.
However, common across all results was the growing tension between adequacy and sustainability.
This was particularly evident when examining Europe’s results, it said. (AGENCIES0
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