UK drops down global pensions league

UK drops down global pensions league

A report which explores the global pensions landscape has ranked the UK eleventh on its barometer, two places lower than a year ago.

The eighth edition of the Melbourne Mercer Global Pension Index compares retirement systems in 27 countries.

According to Mercer, the primary objective of this research is to benchmark each country's retirement system using 40 indicators.

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The methodology uses three key sub-indices to calculate the overall value for each country's system. These measure adequacy, weighted at 40 per cent of the total score, sustainability at 35 per cent and integrity at 25 per cent.

The UK achieved a C+ grade with a score of 60.1 per cent, a category described in the report as a system that has some good features, but also major risks or shortcomings that need to be addressed, and without these improvements the efficacy of the system can be questioned.

Denmark topped the report with an A grade and 80.5 per cent in the index value, closely followed by the Netherlands at 80.1 per cent.

These countries systems were described as first class and robust retirement systems that deliver good benefits, are sustainable and have a high level of integrity.

No systems assessed were ranked an E grade, which would represent a system that may be in the early stages of development or non-existent.

However India, Japan and Argentina were among the lowest scoring D grade systems.

The report described these systems as those with major weaknesses or omissions that needed to be addressed.